Author: David Klemt

by David Klemt David Klemt No Comments

Competing Stimulus Plans Fail to Include RESTAURANTS Act

Competing Stimulus Plans Fail to Include RESTAURANTS Act

by David Klemt – 12/3/2020

Talk out of Washington, D.C., about yet more stimulus relief package negotiations is making one thing starkly clear: We’re on our own.

There’s no help coming, not from the federal government.

Unfortunately—but perhaps unsurprisingly—it appears the bipartisan support the RESTAURANTS Act received in Congress was an exercise in optics. The result? Fleeting hope.

Without a signature from the president, it doesn’t matter that Congress voted to pass a revised HEROES Act two months ago. Lest anyone forget, the last time a meaningful Covid-19 relief package was signed by the current president on March 27 of this year.

Another way to put that is that our elected officials haven’t managed to pass a stimulus package signed into law for 251 days. They did, however, find the time for a week-long recess for Thanksgiving.

It was announced just two days ago that a bipartisan group of congresspeople and senators had negotiated a $908 billion stimulus package. The intention was to strike a middle ground between Majority Leader Mitch McConnell’s (R-KY) desire for a $500 billion package and House Speaker Nancy Pelosi’s (D-CA) proposed $2 trillion-plus bill.

Yesterday, multiple sources reported that the $908 billion—which apparently didn’t include the RESTAURANTS Act—was dead on arrival.

Of note, at least to me, is that Senator Mark Warner (D-VA) is reported to have mentioned that this week’s touted bipartisan package had been negotiated “over pizza or pasta at people’s houses.” I have to wonder if the pizza or pasta was prepared, provided and delivered by restaurants that are among the hundreds of thousands facing permanent closure if the government doesn’t actually act in a meaningful way.

Treasury Secretary Steven Mnuchin, on his way to a House committee meeting, reportedly said, “The president will sign the McConnell proposal that he put forward yesterday, and we look forward to making progress on that.”

From what I was able to glean, the RESTAURANTS Act isn’t included in McConnell’s bill either. Neither are stimulus checks nor a federal boost to unemployment insurance payments. Supposedly it does include an extension of the problematic Paycheck Protection Program (PPP); liability protection for schools and businesses; and a $332 million grant for theaters and live venues.

If the tone of this article comes across as angry, I freely admit that’s an accurate assessment. The RESTAURANTS Act was first introduced to Congress on June 15. Elected officials have had 171 days to help the hospitality industry.

The industry that employs more than 16 million people—11 million of which are employed by independent restaurants. The industry that generates well over $760 billion in annual sales. The industry that accounts for 3.5 percent of America’s GDP. The industry that has for years provided venues, food and drinks for elected officials’ countless re-election campaign fundraisers.

The industry that, should tens or hundreds of thousands of restaurants close their doors permanently, will shed millions of jobs that will not return.

And that’s just what’s happening to the industry in the United States. The industry is similarly at extremely high risk for irreversible devastation in Canada and throughout the world.

So, yes—I’m angry. I’m angry that the millions of jobs and hundreds of billions of dollars this industry contributes just to America apparently don’t mean much to government officials.

I suppose I can only blame myself for holding out hope that the RESTAURANTS Act would be signed into law. After all, the president, speaking about restaurants back in March, said, “they’ll all come back in one form or another,” adding, “It may not be the same restaurant, it may not be the same ownership, but they’ll be back.”

They won’t be back. We’ve already suffered permanent closures. There was no prescience—or empathy—in the president’s statement. Let me make this clear: I’m not laying all of this solely at his feet. America’s politicians on all sides have failed the hospitality industry and therefore millions of Americans.

Restaurants, bars, lounges, nightclubs, hotels… This is an industry that consists of incredibly resilient people. There comes a point, however, that even the most resilient need help.

As hospitality professionals fight to return to their feet, bloodied and battered from countless blows, it doesn’t seem that the government is in their corner. Nothing would make me happier than to be proven wrong, but we’ve been at this crossroads for months now.

Image: Caleb Perez on Unsplash

by David Klemt David Klemt No Comments

How to Address Temporary Restaurant and Bar Closures: 5 Social Media Examples

How to Address Temporary Restaurant and Bar Closures: 5 Social Media Examples

by David Klemt – 12/1/2020

Repeated restaurant and bar closures have, tragically, become a hallmark of 2020.

Operators have had to learn how to communicate closures to potential indoor guests, as well as delivery and takeout guests.

For most operators, the possibility of closing their doors—temporarily or otherwise—has moved well past “if” territory. At this point, it’s not even a question of when a restaurant or bar will have to close, it’s a matter of when it will happen again.

There are a few reasons a F&B business will have to close due to the Covid-19 outbreak: official mandate, reduced indoor and outdoor dining capacities, and voluntary temporary closures.

Mandated closures are, on the surface, straightforward. Government officials decree that certain types of businesses must close their doors by a specific date and time, and owners are expected to comply.

Closures induced by capacity restrictions are less straightforward. It has become woefully apparent that most lawmakers don’t understand (or don’t care) that at a certain threshold, reducing indoor and outdoor dining capacities is as good as forcing a restaurant or bar to close; the value proposition of remaining open simply isn’t there.

A voluntary temporary closure can come about because of capacity limitations, but they can also be the result of other factors. A significant workforce reduction, lack of traffic, rising costs of goods, or an internal Covid infection.

The stark reality is that the likelihood today’s operators are going to have to craft social media posts and emails announcing temporary (and possibly extended) closures is anything but slim.

Below are four examples of effective closure announcements that bars across America have posted to Instagram recently.

Machine, an upscale cocktail bar and restaurant in Chicago, made the difficult decision to close their doors to in-person dining guests throughout the remainder of 2020. The post addressed the reason for the decision but made it clear that Machine would continue to operate for delivery and curbside pickup orders placed online. Community health and safety was held up as a priority, and though the news was disappointing and no doubt difficult to break, Machine’s post was positive.

Award-winning Chicago cocktail bar Lazy Bird, located in the basement of the Hoxton hotel, was forced to close due to indoor dining restrictions. The post image was short and to the point, with the caption explaining in detail why the bar was closing temporarily. Lazy Bird is part of the Boka Restaurant Group and their post included a call to action for people to support venues within the portfolio that would still be able to offer outdoor dining, delivery and takeout.

Three days ago, award-winning restaurant Compère Lapin announced a temporary closure due to a team member being exposed to Covid-19. Like the Machine post, Compère Lapin’s message explained their decision was based on safety. Similar to Lazy Bird, the restaurant urged guests to visit James Beard Award winner Chef Nina Compton’s other restaurant, Bywater American Bistro (BABs).

In Woburn, Massachusetts, just ten miles northwest of Boston, the Baldwin Bar alerted guests to their temporary closure because a staff member tested positive for Covid-19. The message, like that of Machine’s, was transparent, straightforward, reassuring, and positive overall. Not only did the Baldwin Bar share that the venue was undergoing a deep clean, they named the company tasked with providing the service.

The Baldwin Bar, thankfully, got to post the following message a little more than a day after posting their closure announcement:

Operators who find themselves in the terrible and frightening position of having to announce a temporary closure would do well to follow the examples above. While hope isn’t a viable business strategy, a hopeful tone can help garner support from the community.

Equally important are an emphasis on health, safety and cleanliness so guests feel comfortable placing orders for delivery and takeout, and returning when the doors open once again. As difficult as it may be when faced with closure, focusing on the well-being of the guests can help ensure there are guests lined up upon reopening.

Image: Photo by Kelly Sikkema on Unsplash

Top