Author: David Klemt

by David Klemt David Klemt No Comments

86 Restaurant Struggle Campaign a Quarter of the Way to Million-dollar Goal

86 Restaurant Struggle Campaign a Quarter of the Way to Million-dollar Goal

by David Klemt

It’s a new year and we could all use a lift and some great news.

I think a grassroots campaign to provide financial assistance to struggling restaurant workers should restore a bit of faith in humanity.

Chef Andrew Gruel, CEO and executive chef of the Slapfish chain of seafood restaurants, along with wife Lauren Gruel and Slapfish vice president of operations Brad Hall, launched the 86 Restaurant Struggle campaign on GoFundMe in December 2020. The goal is to raise $1 million for restaurant workers enduring hardship.

This news gets better and better:

  • 86 Restaurant Struggle has raised over $228,000 of the $1 million goal.
  • More than 2,100 people have donated to the GoFundMe campaign.
  • So far, half of the donations fall within the $5-100 range, meaning that even during these incredibly difficult times, people are coming together to give whatever they can afford to share.
  • The funds are being dispersed immediately to restaurant workers in need.
  • Turnaround time for 86 Restaurant Struggle fund applicants to be screened and receive their funds is, so far, less than two days.
  • As of two days ago, the campaign has managed to quickly disperse more than $100,000 of the funds raised.

The campaign is inspiring, even if the reason for its existence is the maddening failure of government to provide meaningful assistance to the hospitality industry and the millions of hard-working people it employs. This industry is made up of people who don’t leave others behind and who won’t wait for the government to decide anyone’s fate if they can help it.

Hey, we may not all like one another but we have each other’s backs. It’s important for our mental and emotional health to keep that in mind, as difficult as that may be sometimes.

To learn more about 86 Restaurant Struggle, please click here. To apply for assistance, click here. To follow Chef Gruel and track the progress of 86 Restaurant Struggle, click here.

by David Klemt David Klemt No Comments

Defiance of Sweeping Restaurant and Bar Restrictions is Growing

Defiance of Sweeping Restaurant and Bar Restrictions is Growing

by David Klemt

Defiance of Covid-19-related bar and restaurant restrictions is growing.

Operators across the United States are showing their willingness to refuse to comply with orders they feel are unjust. From being restricted to delivery and takeout only to crippling capacity limits, restaurant and bar owners are making it clear they have no intention to quietly let their employees and businesses suffer.

The pushback has taken various forms so far, from civil disobedience to organized, peaceful protests.

There’s the #OPENSAFE movement in Orange County, California, to which several dozen operators have committed. These business owners have pledged to operate safely and responsibly but have refused to comply with Governor Gavin Newsom’s orders that banned in-person dining.

86 Politicians, a grassroots movement coming out of Los Angeles County in California, was created as a response to the sweeping orders kneecapping the hospitality industry. If politicians are going to hurt rather than help operators and their employees, 86 Politicians supports recalling and removing them from office.

In New York City, the Latino Restaurant Bar and Lounge Association of New York State and New York City Hospitality Alliance organized a peaceful protest just over two weeks ago. Several hundred restaurant and bar owners, operators and workers gathered and marched against Governor Andrew Cuomo’s ban on indoor dining. Gov. Cuomo’s order was itself defiant: it defied logic and went against the state’s own contact-tracing data.

Now, an operator in Minnesota is facing a five-year suspension of her bar and bistro’s liquor license for defying orders. Lisa Hanson, owner of the Interchange Wine and Coffee Bistro in Albert Lea, roughly 90 minutes south of Minneapolis-Saint Paul, refuses to comply with Governor Tim Walz’s executive order banning indoor service. Hanson has been engaged in this fight since at least December of last year.

Hanson organized a protest—a reportedly peaceful one—of around 200 people yesterday. Protestors marched and chanted from city hall to the courthouse, walking past the Interchange at one point.

The bar and bistro, which has been hit with a temporary restraining order and had its license revoked by the Minnesota Department of Health, has a sign up declaring it a “Constitutionally Compliant Business.” That sign, which appeared in a WCCO 4 News clip and bears the logo, phone number and weblink for the Constitutional Law Group, states that the Interchange doesn’t follow any government official or agency’s “orders or suggestions” for face masks or social distancing.

According to a news report, the Minnesota Department of Public Safety is moving forward with a 60-day suspension of the Interchange’s liquor license. Hanson told reporter David Schuman that she had two choices: “Either I closed permanently or I opened fully.”

Hanson chose the latter. The Interchange’s owner is entitled to a court hearing before her suspension goes into effect. A tip jar at the bar and bistro has been transformed into a legal fund collection.

Whether one agrees with Hanson’s decision to make a stand and risk her liquor license and therefore business is somewhat beside the point. The #OPENSAFE and 86 Politicians movements, the protests in New York City, the story of the Interchange (which has yet to reach its conclusion), all point to increasing tensions.

Many restaurant and bar owners and operators don’t feel as though their voices are being heard. They feel like politicians at all levels of government are targeting them, using the businesses as scapegoats. More and more, the words “arbitrary” and “unfair” are coming up in conversations about rules that are crippling—if not outright killing—the hospitality industry.

Well over 100,000 restaurants and bars in the US have closed permanently since the start of the pandemic in March of last year. Unless officials listen to operators and at least gain a cursory understanding of their needs and challenges, more closures and job losses are imminent.

To be clear, we at KRG Hospitality aren’t against logical, common sense health and safety protocols aimed halting the spread of Covid-19. One of the cornerstones of hospitality is ensuring the safety of guests and employees. However, government officials and agencies are implementing and executing orders that are, quite clearly, uninformed and severely harmful. What works for retail and other industries doesn’t work for our industry.

It’s crucial that pressure be kept on Congress and Senate to vote on the RESTAURANTS Act and ensure it’s signed into law. The 117th Congress was sworn in yesterday and we must continue to demand they do their jobs and save our industry. We’ve been targeted as scapegoats—it’s beyond time we receive targeted relief.

Politicians can expect more protests and less faith in their abilities to govern if restaurant and bar owners and professionals continue to be harmed by their orders. Perhaps the only way to persuade them to help the industry and, in turn, keep their constituents employed, is to imperil their political influence and careers. Eighty-six ignorant and harmful politicians, indeed.

Image of Minnesota State Capitol: Bao Chau on Unsplash

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Dry January Will Be Different in 2021

Dry January Will Be Different in 2021

by David Klemt

Tomorrow marks the start of the first Dry January we’ve ever experienced under stay-at-home shutdowns and bar, restaurant and nightclub restrictions.

Like Veganuary—remember way back to yesterday when we wrote about it?—the movement as we’ve come to know can be traced back to the UK. People have chosen t abstain from alcohol in January for decades but Dry January really took off after the trademark was registered by a non-profit called Alcohol Change.

Understandably, many operators have taken issue with Dry January. Taking a hit to the bottom line for a month (or more) because of a reduction in alcohol sales isn’t an exciting proposition.

However, Dry January may be different this year. The convergence of a number of consumer behaviors driven by restricted access to restaurants and bars may present an opportunity.

Throughout most of 2020 we’ve been inundated with reports about unprecedented boosts in online alcohol sales. Premium and ultra-premium spirits grew at a faster rate than they had pre-pandemic. Operators have been forced to pivot, relying heavily on delivery, (somewhat) traditional takeout, and curbside pickup.

Put those all together but substitute premium spirits for premium alcohol-free options and there’s the potential for operators to generate revenue directly linked to zero-proof sales.

One of the keys to succeeding with zero-ABV drinks is presentation. Many alcohol-free brands are dedicated to elevating the category, meaning they can be treated the same as their low- and full-proof counterparts. Curated zero-proof drink kits that include quality modifiers, mixers, garnishes and drinkware can help generate sales. Post quick how-to videos to social media showing a member of the bar team building zero-proof cocktails to create interest.

Those are just two ideas. It shouldn’t be difficult for operators to pivot and offer alcohol-free options that are authentic to their brand and therefore resonate with their guests.

Operators that nail their Dry January menu programming lay the groundwork for succeeding with the alcohol-free category throughout the rest of the year. We finally live in an age where sober, sober-curious and intermittently abstinent consumers don’t feel uncomfortable visiting a bar. Make them feel welcome. Operators who alienate these guests will drive them straight to their competitors to ring their registers instead.

Seedlip is probably the best-known within the alcohol-free category but more premium brands are emerging. Operators should familiarize themselves with the following: Lyre’s (which crafts zero-proof spirits that taste like their traditional counterparts), Wilderton (which uses a distillation method that never introduces alcohol), and Shoki (which showcases African and Caribbean heritage and flavors). There are also brewers embracing the alcohol-free movement, such as Calgary’s Partake Brewing (which is beginning to cross into the US) and Lagunitas and their IPNA, an alcohol-free IPA.

Image: YesMore Content on Unsplash

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The 2021 Food Trends to Know for Veganuary

The 2021 Food Trends to Know for Veganuary

by David Klemt

Strange or even inappropriate as it may seem, it’s time to review food trend data and predictions because we’re hurtling toward 2021.

January also plays host to two monthlong traditions that impact F&B operations: Dry January and Veganuary. For this post, we’re focusing on the latter.

Veganuary may not have claimed “tradition” status just yet, to be honest, but it appears to be well on its way. The movement began in the United Kingdom in 2014 as a social and eco-friendly campaign intended to make the transition to adopting a vegan diet as easy as possible.

The movement has been growing each year with 2018 through 2020 seeing the biggest increases in participation. In 2017, a reported 50,000 people had signed up for Veganuary. That number jumped to a reported 170,000 in 2018; 250,000 in 2019; and 400,000 in 2020. According to the Veganuary campaign, 2020’s participation represented more than one million animal lives and the CO2 equivalent of 450,000 flights.

“Research shows that health is a significant driver for so many people going vegan, especially American consumers. But the reasons to test this lifestyle and decrease consumption of animal-based products are countless, from improving health, to reducing animal suffering, and helping to preserve the planet,” said Veganuary CEO Simon Winch in 2018. “Research shows that not only are there more people curious about going vegan, but more people are sticking with the lifestyle after taking part in Veganuary, which is great news! We are thrilled with the enthusiasm and growing response from Americans taking the pledge and will continue to do our part in making it as easy as possible to try vegan, for as many people as possible.”

Participants sign up for free and are challenged to stick to a vegan diet for the entirety of January. While Covid-19 vaccines have been approved, they’re not widely available to the general public. Many markets are still restricted to outdoor dining, delivery and pickup. It’s important that operators stay current with food and consumer behavior trends to remain top of mind and continue generating revenue.

We reviewed multiple sources to find common vegan-friendly food trends for operators to leverage when programming their 2021 menus.

Plant-based (Datassential, Delish)

One big difference between plant-based and vegan is that the latter’s focus on moral and ethical reasons for choosing the diet. Regardless, plant-based is expected to grow in popularity and therefore demand across the globe.

Tofu (Food & Wine, Whole Foods Market)

The great thing about tofu, a sentence I never thought I’d type, is that the back of house can get as creative as they want with it. Tofu “scrambles” (no eggs, just peppers, onions and sweet potato cubes), fishless tacos (breaded and brined tofu), and spaghetti with tofu riffs elevate this ingredient.

Mushrooms (Food & Wine, Whole Foods Market)

Portobello mushrooms, for example, are more than capable of starring in an array of dishes, replacing animal proteins rather easily. There’s also the fact that mushrooms are being used to make to-go packaging, giving eco-minded guests another reason to support a particular restaurant.

Chickpeas (Whole Foods Market, Martha Stewart.com)

“You can chickpea anything,” says Whole Foods Market. In fact, they claim it’s the cauliflower, taking several forms, like pasta and flour.

Hyper-local (Food & Wine, MarthaStewart.com, The New York Times)

The push for restaurants to source ingredients locally and highlight them on their menus isn’t expected to slow. These publications and more are recognizing supporting local as a “trend” (it’s more a movement at this point) that will get stronger in 2021.

Meal kits (Food & Wine, Delish, MarthaStewart.com, The New York Times)

These, as several publications have stated, are here to stay. Consumers got used to these when subscription services exploded in popularity. Some restaurants offered them pre-pandemic as a response to the meal-kit subscription craze, and they’ve become more prevalent since Covid-19 ripped apart the world. They’re a hit with consumers, so operators should consider vegan-friendly meal kits during Veganuary.

Home cooking classes (Datassential, Whole Foods Market, Delish)

Many of us probably feel like our entire lives are one big Zoom meeting at this point. Well, that’s not expected to change any time soon. A great way to connect with guests staying at home is to host cooking classes—with a focus on vegan cooking in January—and follow up with curated meal kits.

Datassential also identified baby carrots and ramen among their 2021 food trend predictions (and both are vegan-friendly), and carob, chicory root, “future” produce (specialty produce varities), and honeysuckle as flavor trends to follow next year.

Two trends that are not considered vegan? Avocados and fermented honey because the reliance on bees to produce and cultivate both are considered “exploitation” by vegans. Remember the moral and ethical difference between vegan and plant-based from above? There you go.

Image: Anh Nguyen on Unsplash

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Make Your Restaurant Concept ABSURᗡ in 2021

Make Your Restaurant Concept ABSURᗡ in 2021

by David Klemt

Those seeking new restaurant opportunities in 2021 should give serious consideration to Absurd! Kitchen Co., KRG Hospitality’s unique turnkey QSR.

Development of the concept was motivated by the realization that operators need to continue to pivot to survive the pandemic and thrive in a post-pandemic world.

“At KRG Hospitality, we immediately pivoted in March 2020 into ‘rescue mode,’ understanding the immediate needs of so many independent operators,” says Doug Radkey, president of KRG Hospitality.

Moving forward into 2021, guests will be more concerned health, safety and their comfort than ever before. Absurd! was developed as a response to heightened guest expectations and to create a path forward for operators in the post-Covid-19 era. Not only is the concept forward-looking, it’s designed for turnkey operation.

Restaurant guests were growing accustomed to the convenience of frictionless ordering, pick-up and delivery. Lock downs, restrictions, and health and safety concerns have pushed delivery and pickup closer to the forefront of guest expectation. Absurd! leverages the latest in technology and utilizes a subscription element to reward loyalty while offering a convenient and safe QSR experience.

In the new era of restaurant operation we can expect guests to be less tolerant of waiting in lines. Multiple publications have published articles hypothesizing that the Covid-19 pandemic we lead to the end of waiting. Considering the importance of social distancing and how commonplace curbside pickup has become, it’s understandable that many guests have developed a preference for speedy, safe service.

Equally understandable is a guest wishing to keep interactions with other people to a minimum. The ability to peruse a menu via QR code or pay their bill using their own device has offered a level of comfort to guests during the pandemic. It’s logical to believe these guest habits are here to stay.

At Absurd! locations there are no traditional lines. By design, there’s no contact between guests and staff. Guests interact with a location via designated pick-up or drive-through areas. In the pick-up area, guests access food-safe storage units through their mobile devices to grab their orders. The drive-throughs only serve delivery drivers or those who have placed pre-orders. Convenient, safe, time-saving restaurant features for a post-pandemic world.

Absurd! cuisine is inspired by Southern flavors and dishes such as loaded chicken strips, fried waffle sticks, breakfast bowls, and sandwiches. There are options for the full range of dietary needs and preferences, such as dairy-free, gluten-free and vegan meat alternatives. Along with a competitive, high-quality menu, KRG Hospitality has developed a retail offerings that include branded dry spices and meal kits, leveraging another trend that has seen significant growth during the pandemic. The concept’s packaging is sustainable, and adding a food truck can expand an Absurd! operation’s reach.

“Approximately 85 percent of the food menu will be prepared on-site, including the seasoning mix and ‘dredge’ for the fried chicken, which is intended to also be gluten-free and dairy-free,” says Radkey. “The brand is able to accomplish this by maintaining a small but robust and strategic menu mix over the breakfast, lunch, and dinner day-parts. Other food items such as the chile cornbread, breakfast biscuits, and sandwich buns will be sourced through regional partnerships.”

While developing Absurd!, KRG has created a loyalty program to go along with it that’s relevant to today’s guest preferences and consumer habits. Loyalty programs have made the news lately, with attention being paid to how they’ve been changing for the past couple of years. Tech has emerged as a driver for such programs, combining guest data and personalized digital interactions to increase loyalty. However, creativity is a crucial element as well. Recognizing the value of a unique but easily understood loyalty program that offers an attractive value proposition, KRG’s approach for Absurd! is a beverage-based subscription service.

“With a low monthly cost of approximately $8.99 USD per month, the Absurd! beverage subscription program, which is optional, gives the brand an easy way to attract customers and convince them to change their traditional F&B ordering habits while building a strong base of loyalty (and data),” says Radkey. “Consumers today are accustomed to low-cost monthly subscriptions. Therefore, we think it is time for restaurants to tap into that opportunity. The ‘unlimited drinks’ within this program include coffee, iced tea, lemonade, and an assortment of flavored soda waters.”

Absurd! Kitchen Co. isn’t unique for the sake of being different. First and foremost, the concept was designed for experienced and new operators alike so they can thrive in the new era of hospitality. The dedication of KRG Hospitality to helping operators flourish with concepts that are scalable, sustainable, profitable, memorable and consistent is ingrained in Absurd’s DNA.

The concept is a recession- and pandemic-proof QSR that doesn’t rely heavy upon day-to-day involvement by the owners, making it ideal for operators of any level, from the neophyte to the experienced hospitality group.

Click here to learn more about Absurd! and visit www.AbsurdKitchen.com to download this turnkey concept’s information packet.

Image: KRG Hospitality

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You Need to Watch “Restaurant Hustle 2020: All on the Line” Now

You Need to Watch Restaurant Hustle 2020: All on the Line Now

by David Klemt

Whether you own, operate, manage, are employed by or have ever spent time at a restaurant as a guest, you need to watch Food Network’s Restaurant Hustle 2020: All on the Line.

Guy Fieri, who has helped raise $24 million (and counting) for restaurant industry workers, executive produced and co-directed the documentary, which aired last night. He tasked skeleton production crews (one would assume given the pandemic) with following four incredible chefs—Marcus Samuelsson, Maneet Chauhan (and her husband Vivek), Christian Petroni, and Antonia Lofaso—and said he wanted them to keep the cameras rolling to capture “the good, the bad and the ugly.”

When the scope of Covid-19 became clearer and the industry began to see how much devastating its impact would be on restaurants, bars and other hospitality venues, Fieri says in the documentary that he had two thoughts: “’No way can this happen,’ and, ‘Oh my god, this is gonna be worse than we ever imagined.’”

He’s angry about what’s happening to the industry and millions of people it employs and feeds.

“I was mad. I’m still mad,” says Fieri in Restaurant Hustle 2020. “Wrecked lives, wrecked families… Changed the history of the industry.”

Per the documentary, Fieri felt compelled to help his “millions of brothers and sisters” in whatever ways possible: “There was no words. It’s coming. Prepare. Stick together. What can we do?”

The documentary begins with three indisputable facts that speak volumes to the importance of the industry: The restaurant industry employs over 15 million people. That equals up to 20 percent of America’s workforce. The industry generates over $850 billion in sales.

From there, Restaurant Hustle 2020 introduces the four chefs, their restaurants, their challenges, and their collective hustle. Like so many in this industry, there’s no giving up in these people—there’s only fight.

Chef Marcus Samuelsson

Seeking community after 9/11, Chef Samuelsson opened the Harlem location of Red Rooster in 2010. That location employed 180 people—Chef Samuelsson had 30 venues located in eight countries when Covid-19 hit. Pre-pandemic, Red Rooster in Harlem would see around 1,100 guests on a Saturday night, and Chef Samuelson was just a week out from opening the doors of Red Rooster in Miami.

“It’s taken me 25 years to build this moment, but it took ten days to tear it all down. I don’t wish it on my worst enemy,” says Chef Samuelsson.

Chef Maneet Chauhan

Chef Chauhan and her husband Vivek operate four restaurants and three breweries within the Morph Hospitality Group portfolio in Nashville, Tennessee. At their peak, they served 2,500 guests over the course of a weekend. Morph employed nearly 300 people but by March they made the heart-wrenching decision to close their doors. Recalling the difficult choice, Chef Chauhan is brought to tears talking about how gracious her employees were about it.

However, Chef Chauhan and husband Vivek are willing to fight for their dreams and their employees: “The thing is, we are scrappy. We are immigrants,” she says.

Vivek focused on developing and strategizing reopening plans, and the duo fully embody the meaning of the Hindi word “jugaad,” or “a flexible approach to a problem.” While it only represented maybe a tenth of their regular sales, Morph implemented curbside pickup at three of their venues. They rotated availability offering curbside at a different location on Friday, Saturday and Sunday. This allowed them to bring back a handful of employees.

Chef Christian Petroni

There are five locations of Chef Petroni‘s Italian restaurant concept Fortina throughout New York’s tri-state area: Armonk, Brooklyn, Rye Brook, Stamford, and Yonkers. Heading into 2020, they were set to have another amazing year after doing very well in 2019.

“We were just gearing up to take over the world,” says Chef Petroni.

The first Covid-19 death in the United States was reported on February 28 in King County in Washington State. As we know, on March 16, 2020, NYC shut down around 27,000 restaurants, resulting in the loss of 225,000 jobs. Chef Petroni employed nearly 300 people but had to reduce his workforce to less than twenty. To help the communities they serve and generate some revenue, Chef Lofaso created Pies for the People so customers were able to buy pies for those in need or who needed a morale boost (such as hospital workers and EMTs).

Chef Antonia Lofaso

Over the course of a decade, Chef Lofaso has built and operated three restaurant concepts in Los Angeles, California. Her restaurants employed almost 500 people and back in February, serving 1,200 guests over the course of just two weekend evenings was common. Chef Lofaso’s biggest passion is the hospitality aspect of restaurant operation and being “the facilitator of the good time.” That good time came crashing down in March.

“It’s taken me ten years to build these three restaurants and it took a matter of a week for it all to be torn down,” says Chef Lofaso.

She admits to feeling sadness and anger, in large part because she had to lay off nearly 500 employees. Chef Lofaso says that she feels responsible to her team members because they help her build her dream. By March she was able to bring back roughly 20 workers, convert her locations into markets, and sell liquor, which allowed her to bring back 90 percent of her back-of-house employees for at least two days per week and double sales.

For the rest of the story, people will have to watch Restaurant Hustle 2020. The importance of Food Network, Guy Fieri and these chefs capturing this crucial moment in history cannot be overstated.

As Fieri says in the documentary, it’s “a historical moment in time in an industry that is so important to all of us in so many ways, shapes and forms, and these four very brave chef-restaurant owners captured it. Something you’ve never seen. Something you’ll probably never see again.”

As we move forward into 2021, it’s crucial we remember that this story is still unfolding—we don’t know what the new year holds for this or any industry. We know that without targeted aid, the lives of millions of Americans are in jeopardy. We know that even with vaccines available, we’re not out of harm’s way yet.

We don’t know what the industry will look like when the world returns to “normal,” whatever that may be. But we know this industry is made up of fighters and we look out for our own. We’ll get through this together.

Food Network is available via several streaming platforms, including Amazon Fire TV, Roku and Apple TV.

Photo by Shangyou Shi on Unsplash

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Buy a Shirt. Fight Cancer.

Buy a Shirt. Fight Cancer.

by David Klemt

It’s the giving season and the hospitality industry is one that takes care of its own.

We all have the opportunity to help an industry veteran and also support an incredible cause.

In July of this year, Chris Patino was diagnosed with stage four pancreatic cancer. One night he went to bed feeling fine and the next morning he was unable to get out of bed.

Patino is an industry advocate who has focused on elevating the art and craft of bartending, brand education, and executing incredible events. He’s a partner in the award-winning Raised by Wolves, founder of the strategic marketing agency Simple Serve, and a Bartender’s Weekend organizer.

Now, Patino has launched This T-Shirt Fights Cancer. The proceeds of each This T-Shirt Fights Cancer tee, designed by Dave Stolte, based on a design by Woodrow Guthrie, and originally sketched on the back of a napkin—so fitting for this industry—go to the Pancreatic Cancer Action Network (PANCAN).

Like Patino, PANCAN is dedicated to building community, sharing information, and advocacy. The organization fights to improve the lives of those living with pancreatic cancer through advancements in research.

As we near the end of the year, please consider joining the fight against cancer and purchasing a This T-Shirt Fights Cancer tee. To quote Patino on his campaign page, “And as always, f*ck cancer.”

Image: This T-Shirt Fights Cancer

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Foodservice Workers Recommended for Phase 1c of Covid-19 Vaccines

Foodservice Workers Recommended for Phase 1c of Covid-19 Vaccines

by David Klemt

The Centers for Disease Control and Prevention (CDC) has recommended that foodservice workers be included in phase 1c of the Covid-19 vaccine plan.

On Sunday, the Advisory Committee on Immunization Practices met to vote on phases 1b and 1c.

The committee identified those next in line for the two Covid-19 vaccines authorized for use in the United States from Pfizer/BioNTech and Moderna as “frontline essential workers” and people aged 75 years and older (phase 1b), and “other essential workers” (phase 1c).

Phase 1a consists of 24 million healthcare workers, residents of long-term care facilities (LTCF), and staff members who work at such facilities.

An estimated 49 million people are included in phase 1b. Roughly 30 million people in this group are categorized as frontline essential workers. Those in education (teachers, daycare workers, support staff), First Responders, United States Postal Service workers, corrections officers, grocery store workers, food and agriculture workers, those in manufacturing, and people who work in public transit will be inoculated in phase 1b.

People aged 16 to 64 who have high-risk medical conditions, those aged 65 to 74, and the other essential workers have been voted into phase 1c. Foodservice workers are among the roughly 57 million included in this phase, along with the media; construction workers; those who work in shelter and housing; transportation and logistics workers; those in finance, IT, communications, and the legal sector; people who work in the water and water waste industries; public safety workers; and the energy sector.

A lone dissent among the 13-1 vote came from Dr. Henry Bernstein. The doctor felt that, based on the available science, people aged 65 to 74 should have been included in phase 1b.

It’s important to note that states can go against the CDC’s “Phased Allocation of Covid-19 Vaccines” recommendations. For example, Governor Ron DeSantis has stated that the vaccines, which are not yet available to the general public, will go to people aged 70 and up in Florida in phase 1b. In Texas, those aged 65 years and older and people with certain chronic illnesses are said to be the state’s phase 1b priorities.

Other states may follow suit and deviate from the CDC’s phased allocations.

Image: Gustavo Fring from Pexels

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75% of American Restaurant Operators Expect Decreased Sales Through Start of 2021

75% of American Restaurant Operators Expect Decreased Sales Through January

by David Klemt

The fifth National Restaurant Association COVID-19 Restaurant Impact Survey results have been released.

Unsurprisingly and unfortunately, the news is not good.

For their fifth installment, the NRA surveyed 6,000 restaurant operators and 250 supply chain businesses between November 17 and 30. Full-service and limited-service restaurant operators, independent and chain, reported their sales had slipped in October.

Only 12 percent of restaurant operators reported seeing sales growth. In comparison, 79 percent said sales were down.

Per the NRA survey, one reason for the decline in sales is outdoor dining season coming to a close. In New York City, per Governor Andrew Cuomo’s order banning indoor dining, outdoor dining is the only option beyond delivery and takeout. However, the weather is less than attractive for outdoor diners.

Costs are disproportionate to sales for most operators. Nearly 60 percent of survey participants reported increased labor costs when compared to the start of the Covid-19 pandemic in the United States.

Profit margins, historically thin even at the best of times, were reported by 86 percent of operators who partook in the survey to also be lower than the they were prior to the pandemic.

The NRA’s predicted outcome for the industry is that without targeted and significant federal relief specifically for restaurants and bars, more temporary and permanent closures are coming, as are further losses of jobs.

According to an estimate from the NRA, more than 110,000 restaurants and bars had closed by December 1. On average, these establishments employed 32 people, and 17 percent of the closed businesses employed a minimum of 50 people.

Close to 40 percent of survey participants indicated they were considering closing their restaurants or bars temporarily and waiting out the pandemic. That means layoffs that could affect dozens of employees per establishment. Almost 60 percent of survey participants expect a reduction in their workforces over the coming three months.

Sales are expected to lag through the start of next year. The majority of operators surveyed, 75 percent, expect sales to fall even further from their already lower levels through the start of next year.

If that logical assumption becomes reality, slowed sales may trigger a domino effect: reduced traffic, plummeting sales, and increased operational costs leading to layoffs, temporary closures, and ultimately permanent closures.

Restaurants and bars require targeted relief for the industry to survive. If that help doesn’t come soon, if the RESTAURANTS Act or similar legislation isn’t signed into law, the country will lose millions of jobs permanently. The economy will be dealt a lethal blow, losing out on tens of billions of dollars.

Now is not the time to back off the pressure being put on Congress and Senate to pass the RESTAURANTS Act. Click here to tell them time is up—they must return to Washington in January to save our restaurants and bars.

Image: Enrico Hänel from Pexels

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“More help is on the way.” But not for restaurants and bars.

“More help is on the way.” But not for restaurants and bars.

by David Klemt

Speaking about the economic relief package, Senate Majority Leader Mitch McConnell (R-KY) struck what can be generously described as tainted altruism.

“More help is on the way,” said McConnell on the Senate floor on Sunday. He also took the time to attempt to absolve Republican leadership of any blame for the glacier-paced movement forward on relief, laying the fault at Democrats’ feet.

To be blunt, both parties have failed the American people and small businesses in terms of providing federal assistance during the pandemic.

After months of inaction on relief—with the exception of a Congressional vote in September that failed to pass in the Senate—and weeks of discussions and partisan sniping, negotiators finally managed to zero in on a bill with a strong likelihood of becoming law.

Yet sifting through remarks made by some politicians regarding pandemic relief over the course of the past several months, variants of the word “prompt” were bandied about.

If the package passes—which is expected to happen later today—members of Congress and Senate will no doubt perform self-congratulatory victory laps for finally doing their jobs after months of failing to do much of anything in the way of relief. Meanwhile, millions of Americans will continue to face life-altering challenges, reaching out for lifelines that are simply not there.

Included in the package are a number of details identified as “key” to both political parties:

  • The ability for businesses that had received Paycheck Protection Program loans which had been forgiven to deduct the costs said loans covered on their federal tax returns.
  • Speaking of the PPP, it will be reopened with over $284 billion intended for small businesses.
  • $12 billion in available PPP funds for minority-owned and “very small” businesses.
  • $15 billion made available in PPP funds specifically for independent movie theaters, live music venues, and cultural institutions like museums.
  • $600 stimulus checks for qualifying adults (and each child in a household) who earned $75,000 or less in 2019. The amount would be reduced for people who earned more. Those who made $99,000 or more last year are not expected to receive a stimulus check.
  • A $300 boost to unemployment benefits for 11 months, with a possible implementation date of December 27.
  • Gig and contract workers enrolled in the PUA or PEUC programs can expect the same $300 boost to their benefits for 11 to 13 weeks.
  • The deadline to spend billions of dollars made available to cities and states via the CARES Act is expected to be extended from the end of this year to be an entire year.
  • $25 billion in emergency assistance for renters.
  • A moratorium on evictions expected to be extended through the end of January.

What’s not in the package expected to be rushed through Congress? Hundreds of billions of dollars in state and local aid Democrats wanted, liability shields for corporations Republicans wanted, the $120 billion RESTAURANTS Act, or the $240 billion Restaurant and Foodservice Industry Recovery Fund.

Despite McConnell’s declaration that federal assistance is on the way, the economic relief plan leaves an industry that employs millions of American workers and contributes hundreds of billions of dollars to the nation’s GDP (four percent before the pandemic) to fend for itself.

Guy Fieri, in all seriousness, has done more for more unemployed restaurant workers than the government, raising more than $21 million in relief funds in under two months.

The hospitality jobs lost due to Covid-19 aren’t expected to return. With more than 110,000 restaurants closed—and counting—the economic impact will be felt nationwide and, in all probability, have global ramifications.

The PPP turned out to be an absolute farce: billions of dollars went to businesses that are anything but small by definition. There’s little reason to believe the process will improve much (if at all) this time around.

And while restaurants and bars have been crucial to nurturing community, connections and culture since inception, they’re clearly not considered culturally relevant institutions by politicians.

With Congress facing an uphill battle in terms of drafting the language for the relief bill and then voting on it, expecting our elected officials to propose, negotiate, draft and vote on a bill for the hospitality industry seems foolish. That means the earliest the industry can expect help—which seems exceedingly unlikely to ever materialize—is in late February of 2021.

Apparently restaurants, bars, and the foodservice professionals they employ aren’t key to politicians on any side of the aisle. Well, not until they need venues to host their campaign fundraisers, that is.

Image: Andrew Seaman on Unsplash

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