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Infographic: NRA Raise the Wage Survey

Infographic: NRA Raise the Wage Survey

by David Klemt

The results of a survey conducted by the National Restaurant Association to gauge operator reaction to the Raise the Wage Act are in.

Per the NRA’s infographic detailing the participant responses, there’s not much support for increasing the federal minimum wage and eliminating the tip credit.

What’s in the Raise the Wage Act?

If signed into law, the Raise the Wage Act will represent significant change for employers and employees.

The federal minimum wage will be raised incrementally to $15 by 2025. Two years later, in 2027, the tipped wage will be eliminated.

Survey Results

The NRA surveyed 2,000 restaurant operators between February 2 and 9. Respondents are clearly opposed to the Raise the Wage Act.

National Restaurant Association Raise the Wage infographic

What Does This Mean?

A vast majority of survey respondents—along with the NRA—definitely view the bill as a threat to the industry. An email sent by the NRA’s executive vice president of public affairs, Sean Kennedy, includes this succinct statement:

“These results make one point crystal clear—after seeing over 110,000 restaurants close and over 2.5 million jobs lost, increasing labor costs is going to make it more likely that more operators close their doors and lay off their staff. Tipped servers will lose with the end of a system that allows them to make $19-$25 an hour in tips under the current tip credit system.”

To the best of my knowledge, the NRA has not yet conducted a targeted survey of restaurant workers for their opinions of a $15 federal minimum wage and the elimination of the tax credit.

However, fast-food workers from McDonald’s and other chains have gone on strike in at least 15 cities in the United States to demand a raise to $15 per hour. That speaks volumes for how foodservice workers who aren’t typically tipped feel about the Raise the Wage Act.

What’s Next?

According to the NRA, the bill is slated to be fast-tracked and voted on in just a few weeks.

Agree that the Raise the Wage Act is going to hurt operators, workers and the industry? Click here to let Congress know.

Want Congress to pass the bill? Click here to find your representatives and let them know.

Infographic: National Restaurant Association

Image: lucas Favre on Unsplash

by David Klemt David Klemt No Comments

Mardi Gras Transforms Into Yardi Gras

Mardi Gras Transforms Into Yardi Gras

by David Klemt

In a glaring, neon sign of the times, Mardi Gras is built for socially distanced enjoyment this year.

This year, the parade “floats” will be stationary and the revelers will come to them.

Initially created as a grassroots campaign to raise money for artists who craft Mardi Gras parade floats, “Yardi” Gras just may become an annual tradition. In fact, it has been reported that artists have already been commissioned for Yardi Gras in 2022.

What is Yardi Gras??

It’s simple. Well, it’s simple to understand—designing and constructing a Mardi Gras float is a complex undertaking that takes about a year.

Anyway, Yardi Gras celebrates Mardi Gras by transforming buildings into stand-ins for their float counterparts. As you read this, there are hundreds of homes and businesses decorated to celebrate Carnival.

Given that the most common way to enjoy Yardi Gras is via driving tours, I can see this taking off in cities across the world…in conjunction with traditional Mardi Gras parades, of course.

Via @nolashirtclub on Instagram

Alright, Who Did This?

The Krewe of Red Beans has been credited with kicking off what I hope becomes a tradition in NOLA (along with the return of floats, of course) and other cities. To raise funds for Mardi Gras artists and float builders who found themselves out of work when the city canceled parades.

A krewe, by the way, is a social group that organizes Carnival parades or balls.

Announced via press release another krewe, the Krewe of House Floats, also supported artists and the community: The Krewe of House Floats (KoHF) today announced a giving campaign to raise $100,000 for those affected by COVID-19 restrictions and Mardi Gras event cancellations, with Culture Aid NOLA and Grace at the Greenlight as the first partners for the initiative. The magic of Carnival, while often billed as the ‘Greatest Free Show on Earth,’ isn’t possible without float artisans, service industry workers, musicians, Mardi Gras Indians and other culture bearers.”

Click here to donate via the Krewe of Red Beans, and click here to give to the Krewe of House Floats. The latter has created a map of Yardi Gras participants.

Via @tb_lenswork on Instagram

Why Am I So into this Idea?

In its 164-year history, Mardi Gras has only been canceled 14 times. Mardi Gras is most closely associated with New Orleans, a city that should hold a place a reverence in the hearts of all hospitality workers.

Las Vegas, New York City, Chicago, San Francisco, and Orlando come to most people’s minds when they think of US cities known for hospitality. However, New Orleans deserves a top ranking on any hospitality list.

New Orleans has nurtured the careers of several notable chefs, bartenders and operators:

  • Chef Leah Chase, who passed in 2019, was anointed the Queen of Creole Cuisine. Dooky Chase, her NOLA restaurant, has been recognized as one of the most important restaurants and was an important gathering spot for the Civil Rights Movement.
  • Emeril “So Famous You Don’t Need to Hear His Last Name to Know Who I’m Talking About” Lagasse helmed the storied Commander’s Palace in NOLA.
  • The Brennan family took ownership of Commander’s Palace in 1969 and has succeeded in building a family-owned restaurant empire.
  • Chef Nina Compton is a James Beard Award winner who worked in NYC and Miami. Before opening the award-winning Compère Lapin in 2015 and Bywater American Bistro in 2018 in NOLA, Chef Compton competed on season 11 of Top Chef.
  • Chris Hannah worked at the world-famous Arnaud’s 75 for close to 15 years before opening Manolito and Jewel of the South with Nick Dietrich.
  • Jeff “Beachbum” Berry cemented his legacy as one of the most influential people in the bar world long before he opened Latitude 29 in the French Quarter. He has written seven books focused on cocktail and culinary history, “lost” recipes, and culture.

That’s just a tiny handful of culinary and cocktail influencers with ties to New Orleans.

Cocktails Created in New Orleans

NOLA is the home of several classic cocktails, including:

  • Sazerac. Antoine Peychaud, the inventor of Peychaud’s Bitters, is credited as the creator of the Sazerac.
  • Vieux Carré. It means “Old Quarter” in French and references what we now know as the French Quarter.
  • Brandy Crusta. Created by Joseph Santini in the 1850s at the “original” Jewel of the South bar.
  • Ramos Gin Fizz. Originally called the New Orleans Gin Fizz but eventually changed to honor its creator, Henry Ramos.
  • Hurricane. Invented at Pat O’Brien’s Bar, which is still in operation and has been serving Hurricanes since the 1940s.

Next time you serve or enjoy one of these classics, toast New Orleans.

We hope you have a great Mardi Gras or Yardi Gras!

Image: beebutter from Pixabay

Chef preparing burgers inside restaurant
by David Klemt David Klemt No Comments

This Generation is Most Likely to Dine In

This Generation is Most Likely to Dine In

by David Klemt

Chef preparing burgers inside restaurant

The National Restaurant Association’s 2021 State of the Restaurant Industry report revealed the generation most likely to dine in-person at a restaurant.

That is, of course, if such restaurant service—from quick-service to fine dining—is permitted where they’re located.

So, do you have a guess? Because we have the answer.

Most Likely to Dine In

Per an NRA survey, Gen Z is most eager to return to in-person restaurant dining.

However, it’s more of a simple majority that’s after a restaurant experience beyond delivery, takeout and curbside pickup than an overwhelming one.

Just 53 percent of adult members of Gen Z surveyed by the NRA are willing to dine inside restaurants over the course of the next few months.

Overall, 67 percent of Gen Z, Millennial, Gen X and Baby Boomer adults would like to engage with restaurants like they did before the pandemic. That’s not a huge stretch, of course; we all want to return to normal and put Covid-19 behind us.

Still, the survey results make it clear there’s demand for in-person dining. The convenience of interacting with and ordering from restaurants is here to stay. However, that convenience hasn’t replaced the desire to dine (and socialize) out.

So, Who’s Most Likely to Order In?

You’d be forgiven for assuming the answer to this question is also Gen Z. After all, just about every development regarding technology and how people engage with the world has been laid at their feet.

When Gen Z isn’t being accused of “killing” a tradition, sense of normalcy or an entire industry, the finger is pointed at Millennials.

Well, it turns out the usual finger-pointing suspects are the consumers most likely to order from restaurants.

According to the NRA’s report, 81 percent of Boomers and 80 percent of Gen X will continue to order from restaurants, at least for the next few months.

Put it All Together

At least for the next several months, the industry’s recovery will hinge on the full-strength return of in-person service and the convenience of delivery and takeout.

In other words, some consumers are champing at the bit to once again make restaurant visits a regular part of their lives while others plan to proceed with caution. Successful restaurant operations will maintain a mixture of traditional and digitally-driven services.

Nearly 90 percent of adults surveyed by the NRA say they enjoy going out to restaurants and that doing so with family and friends is a better way to spend leisure time than cooking at home.

“Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic. We’ve also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth,” said Hudson Riehle, senior vice president, Research and Knowledge Group, NRA, in a press release announcing the Association’s 2021 State of the Restaurant Industry. “With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery.”

The NRA predicts foodservice sales to reach $731 billion in 2021, an 11 percent increase over 2020. Unfortunately, that estimate is about 15 percent lower than sales generated in 2019.

Still, that’s a reason to be optimistic. Consumers are pent-up and eager to make restaurants a significant part of their lives once again.

Nobody is more eager, evidently, than Gen Z.

Image: Jesson Mata on Unsplash

by krghospitality krghospitality No Comments

On the Menu for 2021: The RESTAURANTS Act

On the Menu for 2021: The RESTAURANTS Act

by David Klemt

Much like restaurants themselves, the RESTAURANTS Act has faced multiple starts and stops.

The bill received huge bipartisan support in 2020, landing dozens upon dozens of co-sponsors.

However, that widespread support didn’t materialize into any actual progress—the bill was never signed into law. That must change now.

A Long Road

It’s February 2021. The House and Senate must work together to provide the targeted relief of the Real Economic Support That Acknowledges Unique Restaurant Assistance Needed to Survive (RESTAURANTS) Act.

The RESTAURANTS Act was first introduced to the House of Representatives on June 15, 2020. The bill was eventually included in the revised Heroes Act, which was passed by the House on October 1, 2020 on a vote of 214 to 207.

Unfortunately, that bill was “dead on arrival” and didn’t receive a vote on the Senate floor. A $900 billion stimulus package was negotiated in December of 2020 but the RESTAURANTS Act wasn’t included in it.

It has been more than long enough—it’s beyond time for action.

Where are We Now?

Throughout all of this, from inception to current status, the Independent Restaurant Coalition (IRC) has never faltered in their campaign to ensure this industry receives the targeted relief it so desperately needs.

It’s wise given how the number of times we’ve been let down by our elected officials to be guarded and cautiously optimistic about the RESTAURANTS Act finally being signed into law this month.

On February 5, Senators Roger Wicker (R-MS) and Kyrsten Sinema (D-AZ), and Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick (R-PA) formally (re)introduced the RESTAURANTS Act to the 117th Congress.

What’s in the Bill?

In its current form, the RESTAURANTS Act:

  • establishes a $120 billion relief fund for foodservice and drinking establishments;
  • makes groups that operate up to 20 units eligible for relief from that fund;
  • provides operators access to grants of up to $10 million for eligible expenses; and
  • makes the grants retroactive to February 15, 2020 and ends them eight months after the legislation is signed into law.

New provisions in the February 2021 RESTAURANTS Act include:

  • updates to the award calculation based on annual loss from calendar year 2020 instead of quarterly;
  • grant eligibility for new restaurants that opened after January 1, 2020;
  • paid sick leave as an eligible expense for employees, with a bonus amount to cover the cost of voluntarily providing ten days of sick leave to employees;
  • providing the Department of the Treasury the discretion to help reduce waste, fraud, and abuse;
  • imposing reporting obligations on the Department of the Treasury to share who gets loans and demographic information about recipients; and
  • ensuring that restaurants can use both the Employee Retention Tax Credit and the RESTAURANTS Act grant program, provided they are not used for the same expenses.

What’s Next?

We must all act to give the RESTAURANTS Act the best chance of becoming law. We have been patient for long enough.

We must let our representatives know we expect them to pledge their support for this bill formally.

The IRC provides several methods for ensuring our representatives understand they need to co-sponsor and pass the RESTAURANTS Act:

  1. Email your representatives and ask them for their co-sponsorship.
  2. Call your representatives directly and tell them why restaurants and bars need the RESTAURANTS Act to be voted on, passed, and signed into law. This is the number to dial: (202) 224-3121. The IRC has provided talking points here.
  3. Share the graphic below on your social channels and encourage your followers to also contact their representatives and ask them to co-sponsor the RESTAURANTS Act. Use the following caption when posting: It’s official: the RESTAURANTS Act of 2021 is on the menu in both chambers of Congress. Call your representatives today and tell them that independent restaurants, bars, and workers can’t wait any longer for direct relief: 202-224-3121 #SaveRestaurants

All of that will take less than 20 minutes. That’s not a lot of time to help finally get this industry the support and relief it needs.

The RESTAURANTS Act is needed to prevent more permanent restaurant and bar closures, and to revitalize the industry. The road to recovery is a long one and getting this bill signed into law is a major step forward.

Please email and call your representatives. Please share the post and caption above on your social media. Please help save the restaurants, bars, and millions of people they employ.

Image:

by David Klemt David Klemt No Comments

2021 Technomic Outlook: United States

2021 Technomic Outlook: United States

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for 50 years.

The research and consulting firm has been one of my go-to information sources for at least a decade.

A few weeks ago, I reviewed American food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for the US.

Unprecedented and Unpredictable

Before we proceed, keep this in mind: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has plunged the industry deep into unprecedented territory.

It seems the only thing predictable about Covid-19 in relation to restaurants, bars and other hospitality businesses is that this industry will continue to bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unprecedented and unpredictable moments in time.

7 Key Trends

Technomic has made seven predictions for foodservice in the US.

  1. Streamlined menus. Technomic expects the trend toward reducing SKUs to continue. However, that may lead to innovative and healthy items replaced removed items. Leafy greens, environmentally-friendly, and health-conscience items such as immune boosters are expected to be menued.
  2. Tech is the future. This prediction can be summed up quickly: If it’s a tech-based, can improve operations and help a brand differentiate itself from others, the industry is going to implement it.
  3. Top three cuisines. Chinese, Italian and Mexican food and drink are expected by Technomic to perform the best in 2021, particularly if operators move beyond the classics and incorporate lesser-known ingredients. However, Technomic expects more interest in West African and Caribbean cuisine.
  4. Social justice. Operators will have to be transparent about their stances on social justice issues and make meaningful statements—hashtags won’t cut it with younger consumers.
  5. Umami will reign supreme. Technomic uses the phrase “new-mami” to describe “intense, mouthwatering fare.” Think fruit vinegars beyond apple, candy cap mushrooms, seafood meatballs, and so much more.
  6. Communal concepts must adapt. Food halls, eatertainment concepts, and venues with communal seating will have to reimagine their spaces and how guests use them during an era characterized by social distancing, constant sanitizing, and off-premise business models. Traditional guest experiences may return but there’s no telling when that will happen.
  7. Revenue recovery. Technomic expects the industry to start recovering in 2021. However, sales levels are unlikely to reach those of 2019.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.

Click here to view Technomic’s “2021 U.S. Trend Outlook” webinar.

Image: Justin Cron on Unsplash

by David Klemt David Klemt No Comments

2021 Technomic Outlook: Canada

2021 Technomic Outlook: Canada

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for five decades.

The research and consulting firm has been one of my go-to information sources for at least ten years.

A few weeks ago, I reviewed Canadian food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for Canada.

Unprecedented and Unpredictable

First things first: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has thrown the industry into unprecedented territory.

It seems the only predictable element related to Covid-19 is that restaurants, bars and other hospitality businesses will bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unpredictable, unprecedented moments in time.

5 Key Trends

Technomic has made five predictions for foodservice in Canada.

  1. 2021 will represent the start of financial recovery for foodservice. Technomic predicts moderate sales growth this year, below levels of 2019. However, limited-service restaurants are expected to perform better than their counterparts and return to 2019 revenue levels. Not surprisingly, Technomic expects full-service restaurants to be the most challenged.
  2. Operators will make their stances on social issues known. Multiple sources say today’s consumers want transparency from the brands they support. They want to know what company’s believe about climate change, food insecurity, social inequalities, diversity and hiring practices, fair pay for employees, and other issues. Technomic expects more operators to “double down” on transparency.
  3. On-premise operations will invest in off-premise business models. Again, multiple sources have reported that significant percentages of consumers are uncertain or uncomfortable about returning to restaurants and bars for in-person dining and drinking. Technomic expects operators to invest in smaller dining rooms so they can offer more limited-contact and contactless options to guests: walk-up ordering windows, multiple drive-thru lanes, designated curbside pickup locations, and in-store pickup and grab-and-go stations. The firm also expects more operators to embrace first-party/direct delivery, along with technologies like mobile ordering and geofencing.
  4. Comfort, quirkiness and indulgence. Technomic expects comfort foods to continue to perform well and encourages operators to get creative—even quirky—with this category. They caution that health will still be a focus of many guests and suggest that some operators will “disguise better-for-you meals as indulgent.”
  5. Our home and native land. Hyperlocality will play a crucial role in driving traffic given the travel restrictions imposed throughout Canada. Operators will likely forge relationships with local farms to attract local visitors to their venues. Technomic expects to see grassroots movements promoting support for small regional chains and local independent operations to gain traction.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.

Click here to view Technomic’s “2021 Canadian Trends Outlook” webinar.

Image: Hermes Rivera on Unsplash

by David Klemt David Klemt No Comments

E-Commerce Alters Drinking Occasion

E-Commerce Alters Drinking Occasion

by David Klemt

According to estimates, beverage alcohol e-commerce grew by 40 percent in 2020.

Per data from the IWSR, ten “core countries” are driving that growth: Australia, Brazil, China, France, Germany, Italy, Japan, Spain, United Kingdom, and the United States. China, the reigning campion of beverage alcohol e-commerce, is expected to be toppled by the US by the end of this year.

Of particular note: growth in the above markets more than doubled from 2019, when online alcohol retail grew by 11 percent.

What this Means for Brick-and-Mortar Operations

We all know what drove the growth in online alcohol sales.

In their quest to find comfort in the midst of the global 2020 pandemic, they became comfortable with purchasing alcohol online as a long-term behavior. Alcohol brands were forced to pivot to online sales channels due to restaurants, bars, lounges, nightclubs and other brick-and-mortar F&B operations facing constantly shifting restrictions and closures. (See also: Los Angeles County restaurant restrictions.)

To compete, operators must continue to do what they’ve had to even before a pandemic absolutely ravaged the hospitality industry and millions of people’s livelihoods: adapt.

For at least several more months, drinking at home will be its own occasion, for obvious reasons. The IWSR expects brands to invest more into online alcohol retail. If that proves to be the case, operators can expect–as a worst-case scenario–fewer dollars spent on their brick-and-mortar operations.

Getting creative with alcohol delivery, takeout and pickup is crucial to give operators the best chance to be included in the at-home drinking occasion.

The Trends to Watch

In terms of delivery trends, you can click here for food trends so you can consider complimentary beverages. Click here for 2021 drink trends, which certainly include alcohol-free beer.

Athletic Brewing Co. alcohol-free craft beers.

Athletic Brewing Co. alcohol-free craft beers. Image: Athletic Brewing Co.

Speaking of delivery, the growth in alcohol e-commerce makes owning the guest journey by offering direct delivery even more important.

The IWSR has identified their own set of trends tied to the growth of alcohol e-commerce:

  1. As touched on above, at-home drinking becoming its own occasion outright.
  2. Premiumization will change. Some consumers will experiment less and focus on their favorite brands, and others will turn to brick-and-mortar channels for premium experiences.
  3. Politics will play a noticeable role on beverage alcohol, not just in the US but across the globe. Tariffs could change and strict e-commerce regulations could loosen.
  4. RTDs will remain strong or get stronger. Per the IWSR, “innovation in alcohol bases, exploration of new and increasingly local flavors, and premium product offerings” will ensure RTDs remain a crucial beverage category in 2021.
  5. Low- and zero-alcohol drink options will continue their evolution. Once stigmatized, these drinks exploded in popularity in 2020. For 2021, the IWSR expects them to become aspirational.

Last year changed the industry. Comfort, convenience, and a heightened awareness of health and wellness are altering how people consume and engage with brands, restaurants and bars. Operators, already facing challenges from all sides, must take the time to develop strategies to compete for e-commerce dollars.

Image: mentatdgt from Pexels

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What You Need to Know About SBA Form 3508S

What You Need to Know About SBA Form 3508S

by David Klemt

Midway through last month, the Small Business Administration maneuvered to make the PPP loan forgiveness process simpler for loans up to $150,000.

In December of 2020, Congress passed a Covid-19 relief bill that pumped $284 billion into the Paycheck Protection Program.

Twelve billion dollars were made available to minority-owned and “very small” businesses, and $15 billion were made available to independent movie theaters, live music venues, and cultural institutions.

What is SBA Form 3508S?

Simply put, 3508S is a simplified, one-page PPP loan forgiveness form.

When Congress passed December’s relief bill, they included a requirement for the SBA to offer streamlined loan forgiveness forms.

To that end, 3508S is for businesses that received loans of $150K or less. Again, it’s a single page. As you’ll see when you check out SBA Form 3508S, the form comes with instructions.

What information do you need to provide?

With Form 3508S, you’re not even filling out an entire page. And the first roughly third is simple. Assuming you’re the person filling out, certifying and signing the form:

  • Business legal name (“Borrower”)
  • If applicable, the DBA or Tradename
  • Business address
  • North American Industry Classification System (NAICS) code (Accommodation and Food Services is 72; Arts, Entertainment and Recreation is 71, for reference)
  • Business Taxpayer Identification Number (TIN), Employer Identification Number (EIN), or Social Security Number (SSN)
  • Primary contact
  • Email address

After filling out that section and ticking the box for first-draw PPP loans or second draw, you’ll need the following info:

  • SBA PPP loan number
  • Lender PPP loan number
  • PPP loan amount
  • PPP loan disbursement date
  • The number of employees at the time of the loan application
  • Number of employees at time of loan forgiveness application
  • Covered period of PPP loan. Per the form instructions, “The Covered Period begins on the date the loan was originally disbursed. It ends on a date selected by the
    Borrower that is at least 8 weeks following the date of loan disbursement and not more than 24 weeks after the date of loan disbursement.”
  • Total amount of loan spent on payroll costs
  • Requested amount of loan forgiveness

From there, you initial two boxes–if you can do so accurately and honestly–next to certification statements. Then you sign, print and the date form and include your title.

There’s an optional demographic information section at the top of page two of Form 3508S.

SBA Form 3508A. Sample only.

What additional documentation must you provide?

None, which is what makes this form so simple. In fact, you’re not even required to show any of your calculations corresponding form sections. However, we strongly suggest you run those calculations as you’ll need to certify that you did so and you’ll need them if the SBA audits the loan.

And while you don’t have to submit additional documents, it’s likewise required and smart that you retain required documentation for a number of years. The SBA may ask for certain documents when your application comes up for review, so you’ll want to know where they are to make the process as smooth as possible.

What’s the loan forgiveness deadline?

There’s no specific date in terms of an SBA PPP loan deadline. However, the SBA’s PPP loan forgiveness FAQ states the following:

  • “Borrowers may submit a loan forgiveness application any time before the maturity date of the loan, which is either two or five years from loan origination.”
  • “[I]f a borrower does not apply for loan forgiveness within 10 months after the last day of the borrower’s loan forgiveness covered period, loan payments are no longer deferred and the borrower must begin making payments on the loan.

You may notice that Form 3508S has an expiration date of July 31, 2021 in the upper right-hand corner. This simply indicates the SBA’s compliance with the Paperwork
Reduction Act.

There are other SBA PPP loan forgiveness applications as well. SBA Form 3508-EZ is for borrowers who meet specific conditions, and Form 3508D is for borrowers to disclose controlling interests in the business by other companies, along with government officials involved in the business.

If none of those forms are right for you, you’ll have to fill out the standard, five-page Form 3508.

Image: Cytonn Photography from Pexels

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Los Angeles Restaurants Face New Outdoor Dining Restrictions

After Weeks of Prohibition, This is What Los Angeles Restaurants are Facing

by David Klemt

Limited to delivery and takeout for several weeks, Los Angeles restaurants and breweries may now offer outdoor dining.

Of course, that easing of restrictions comes with a raft of new limitations.

The outdoor dining ban was lifted last Friday, January 29. Governor Gavin Newsom rescinded California’s statewide stay-at-home order four days prior, January 25.

Operators, still caught firmly in the vortex of opens, closures and ever-shifting restrictions, will have to weigh the potential to generate in-person dining revenue against limitations and costs.

Outdoor dining capacity of restaurants, breweries and wineries (able to open for outdoor tastings) is restricted to 50 percent. Even an operator with a significant outdoor footprint may find the revenue generated from in-person dining incapable of offsetting associated costs.

Speaking of footprint, operators must also contend with new distance requirements. Outdoor tables must now be spaced a minimum of eight feet apart to ensure guests aren’t seated back to back. This increase from six feet must be measured from the edges of each table.

Any employee who “may come in contact” with a guest is required to wear a face mask and a face shield for the duration of such an interaction, which can’t include tableside preparations.

No live entertainment is permitted, and televisions must remain turned off. Couple the television ban with a prohibition on “coordinated, organized or invited events or gatherings” and Super Bowl parties are clearly not permitted.

Additional limitations pertain to guests and group size. No more than six people may be seated at a table, and each guest must be a member of the same household. Signage informing guests of the household requirement must be posted, and guests must also be given this information verbally.

A “household” in Los Angeles County is defined as “persons living together as a single living unit.” Click here for the County of Los Angeles Department of Public Health’s “Protocol for Restaurants, Breweries and Wineries: Appendix I.”

According to Dr. Barbara Ferrer, Los Angeles County health director, operators can expect increased scrutiny and enforcement of Covid-19 protocols.

Evidence of enhanced enforcement efforts was seen last week. LA County filed two suits on January 27 against Cronies Sports Grill in Agoura Hills and Tinhorn Flats in Burbank for failing to adhere to health directives. Both suits label the establishments as “public nuisances.”

Some Los Angeles operators may find limited outdoor dining better than no in-person dining at all. However, others may conclude that labor and PPE costs alone aren’t worth restricted reopening, to say nothing of contending with increased governmental scrutiny.

Image: David Mark from Pixabay

by krghospitality krghospitality No Comments

National Restaurant Association Opposes Elimination of Tip Credit

National Restaurant Association Opposes Elimination of Tip Credit

by David Klemt

Citing a 600-percent increase in labor costs, the National Restaurant Association opposes the elimination of the tip credit.

An email sent out yesterday by NRA executive vice president of public affairs, Sean Kennedy, stated that doing away with the credit would present “an impossible challenge to restaurant owners” to remain open.

The email also opposes boosting the national minimum wage to $15 per hour.

Not every operation would see labor costs potentially skyrocket to untenable levels but wage changes could see restaurants, bars and other businesses in some states hit the cited 600-percent increase. If the majority of restaurant operators saw sales decline last month, as a previous NRA report said operators predicted, and that trend continues, the association’s standpoint could be proven right.

While the NRA continues its support for making the RESTAURANTS Act part of any new stimulus relief bill, the association has made their positions on the matter of a minimum wage hike and elimination of the tip credit clear:

“But now is not the time to insert wage changes–a hike in the minimum wage and elimination of the tip credit–to a stimulus bill. Tipped servers generally earn between $19-$25 dollars per hour, and this plan would punish these workers who use restaurant jobs to make a better life for themselves.”

The NRA appears concerned that the Biden administration’s efforts to quickly get Congress to pass a Covid-19 relief bill are short-sighted and will end up hurting tipped workers and the hospitality industry overall.

According to the message sent out yesterday, the majority of tipped workers across the country have, historically, opposed efforts to eliminate the tip credit. Per the NRA, tipped workers earn between $19 to $25 per hour when the tip credit remains intact.

Instead, the NRA prefers the next stimulus relief bill–there are currently two competing bills, one for $1.9 trillion plan and a GOP counterplan with a price tag of around $600 billion–to go with the Senate version of the RESTAURANTS Act.

If you agree with the NRA’s concerns, click here to take action.

Image: Mathieu Turle on Unsplash

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