Covid-19 | KRG Hospitality

June 8, 2021by David Klemt David Klemt No Comments

Reopening Ontario: Patios Return Friday

Reopening Ontario: Patios Return Friday

by David Klemt

There’s great news for Ontario and the province’s new reopening plan: outdoor dining is returning three days ahead of schedule.

From June 11 on—barring any governmental changes—the province of Ontario will enter Step 1, which focuses on outdoor activities.

Due to favorable indicators such as the province’s vaccination rate, Reopening Ontario will kick off early.

A Welcome Surprise

Ontario has been in under heavy restrictions for nearly two months. So, this news represents a refreshing glimpse of light at the end of a ridiculously long tunnel.

Initially, Reopening Ontario was slated to begin Step 1 on June 14.

The earlier date and announcement should help restaurant and bar operators take advantage of the coming weekend. After weeks upon weeks of living under a stay-at-home order, the decent-at-best forecast should be clear enough for Ontarians to get outside.

Step 1

Reopening Ontario is focusing on the following to progress through the three steps:

the provincewide vaccination rate; and
improvements to key public health and health care indicators.

Per the plan, the province will remain in each phase of the plan for a minimum of 21 days.

The first step allows for outdoor gatherings of ten or more people. And, for restaurants and bars, outdoor dining with a limit of four people per table.

RestoBiz is reporting that there will be an exception allowing for households with more than four people. The publication also reports that nightclubs may offer delivery, drive-through and takeout as long as they only operate as food or drink establishments.

To move to Step 2, 70 percent of adults must receive at least a single dose of Covid-19 vaccine. Additionally, 20 percent of adults need to receive a second dose (of a two-dose regiment).

Two weeks after Ontario reaches that target, the province will move forward.

Step 2

In this phase of Reopening Ontario, restaurants and bars can seat six people per table outdoors.

Per Ontario’s official government website, restaurants and bars will also be able to offer karaoke. Of course, in this phase it must take place outside.

The single-dose target vaccination rate to move on from Stage 2 is 70 to 80 percent of adults. Also, 25 percent of adults must receive two doses (of a two-dose regimen).

If those targets are hit and key public health and health care indicators are favorable, the province will progress further.

Step 3

Obviously, this the least-restrictive phase of Reopening Ontario.

In Step 3, restaurants and bars can once again return to indoor dining. There will be capacity and other restrictions in place.

Also, buffets can return.

Outdoor dining capacity will focus on social distancing: there must be two metres between tables.

Should the vaccine rate and other indicators continue to improve, it’s possible that Ontario will reopen fully as soon as 21 days after Step 3 begins. Of course, we’ll monitor the situation and see what Ontario officials say about a return to “normal.”

For now, things are looking up. To review the Reopening Ontario plan, click here.

Image: Taylor Vick on Unsplash

The Next Step chalk concept with footprints

May 27, 2021by David Klemt David Klemt No Comments

What the B.C. Restart Means for Operators

What the B.C. Restart Means for Operators

by David Klemt

In news that’s not exactly surprising, the British Columbia “circuit breaker” expiration didn’t lead to a full reopening.

Instead, the province is launching the B.C. Restart plan.

Obviously, not returning to restriction-free restaurant and bar service is disappointing. However, the plan does give operators dates against which they can plan for staffing, inventory, and other aspects of running their businesses.

Of course, that’s only if officials execute the plan as-is.

Not Surprising

As B.C. operators are well aware, the expiration of the province’s “circuit breaker” doesn’t mean they can return to pre-pandemic operations. Clearly, it would’ve been helpful to the province’s hospitality operators for officials like Premier John Horgan to have made that clear last week.

Resources are razor thin and have been since the start of the pandemic and pandemic-driven shutdowns and restrictions. The more lead time officials can provide hospitality operators to prepare for changes to Covid-19 operational protocols, the better.

Let me say that again for any officials who may read this: Restaurant, bar and other hospitality businesses need more than a few days’ notice to prepare for rule changes.

As long as B.C. Restart targets are hit and numbers don’t head in the wrong direction, at least the new plan is clearer than last week’s expiration announcement.

Four-step Plan

B.C. Restart targets four dates that should remain in place as long as Covid-19 case, hospitalization and death rates remain low. Conversely, the province is seeking increases in adult vaccination rates (for dose one).

Unsurprisingly, the province is now in step one of the four-step B.C. Restart plan. The goal is to achieve a 60-percent dose-one vaccination rate among the province’s adult population. A mask mandate is in place provincewide, as are safety protocols like social distancing. Indoor and outdoor dining is restricted to a maximum of six people, with safety protocols.

The earliest date for step two to begin is June 15 and targets a 65-percent adult vaccination rate. B.C.’s mask mandate remains, as do business safety protocols and physical distancing measures. Interestingly, the province’s travel restrictions are removed.

Step three starts on June 1 at the earliest, targeting a 70-percent adult inoculation rate, low Covid-19 case rate, and decline in hospitalizations. Officials will announce new PPE and social distancing guidelines, organized indoor and outdoor gathering capacity will increase, and nightclubs and casinos will reopen (with capacity limits and safety protocols).

If all goes to plan, September 7 is the earliest start to step four, which targets a dose-one adult vaccination rate of more than 70 percent. B.C. will permit a return to “normal” social contact.

For Operators

Restaurant and bar operators—at the moment—should focus on steps one and two of B.C. Restart.

The reason is simple: During steps one and two, restaurants and bars must operate under the pre-circuit-breaker health and safety protocols.

So, operators must follow these rules for step one:

Indoor and outdoor dining capacity: 6 people
Liquor service curfew: 10:00 PM

And the following for step two:

Indoor and outdoor dining capacity: 6 people
Liquor service curfew: Midnight

Should things stay on track, step three will rescind the liquor service curfew, and there will be no group limit for indoor and outdoor dining.

Obviously, B.C. Restart isn’t what operators wanted when officials announced the expiration of the circuit breaker. However, the new plan does allow operators to plan ahead and gives us a glimpse of a light at the end of a very long, very erratic, very dark tunnel.

To review the plan in more detail, click here.

Image: Gerd Altmann from Pixabay

May 20, 2021by krghospitality krghospitality No Comments

What in the CDC Guidance…?

What in the CDC Guidance…?

by David Klemt

The Centers for Disease Control and Prevention is once again offering Covid-19 guidance and this time it’s taking a sharp turn.

One big takeaway is that nobody was really expecting the agency’s abrupt and surprising advice.

Also, the CDC’s updates are confusing a lot of people. So much so, in fact, that the agency is “shaking up” communications personnel.

Changing Guidelines

Clearly, the CDC’s statements toward the end of last week are shocking. The agency caught states and businesses completely off guard.

Business owners, workers and the public are unsure how to interpret the CDC’s new advice. Unfortunately, that seems to indicate that perhaps the agency didn’t take the time to really dial in their message before addressing the nation.

We’ve dealt with constant shifts in guidance for more than a year now. There’s little wonder that so many Americans are experiencing Covid-19 fatigue and skepticism.

It’s fair to say that when the CDC announced updated guidelines last week, people threw their hands up in frustration.

Obviously, the messaging was haphazard since so many attempts at clarification have taken place over the course of just a few days.

So, what’s the agency saying now?

Vague at Best

Last Thursday, Dr. Rochelle Walensky, the current CDC director, said this:

“Anyone who is fully vaccinated can participate in indoor and outdoor activities, large or small, without wearing a mask or physical distancing. If you are fully vaccinated, you can start doing the things that you had stopped doing because of the pandemic.”

Which, okay—great. Seems like a simple bit of direction, right?

Obviously, no—not that simple. Yesterday, Dr. Walensky had to clarify the CDC’s newest guidance:

“This is not permission for widespread removal of masks. We were going to get to the point in the pandemic where the vaccinated could take off their masks.”

The Details, Kinda

In short, the new advice is aimed toward those who are fully vaccinated. To review, a person is considered to be fully vaccinated:

two weeks after receiving the second dose of a two-dose regimen (Pfizer, Moderna); or
two weeks after receiving a dose of a one-dose vaccine (Johnson & Johnson).

Last week, Dr. Walensky said that fully vaccinated people no longer needed to wear masks or practice social distancing outdoors or indoors. Of course, caveats followed immediately, leading many people to criticize the guidance as vague and, to put it bluntly, unhelpful.

The caveats? The fully vaccinated should still wear masks in crowded settings like airports, airplanes, buses and other public transportation, hospitals, homeless shelters. Also, they should continue following the guidance of their employers and local businesses.

Sifting Through the Confusion

In a nutshell, what the CDC is saying is that fully vaccinated people can return to a semblance of their normal pre-pandemic lives.

This is likely an attempt, however slap-dash or ham-fisted, to incentivize the unvaccinated to get their shots. It’s also probably another attempt at rebooting the economy.

One problem with this new guidance is that it’s vague. People still have questions, and the CDC appears to be fine with deferring to business owners. That means, once again, front-line workers have to police mask wearing and social distancing.

Our industry has been forced to shove staff into awkward and hostile situations and confrontations for over a year now. Shifting guidance and recommendations routinely give short shrift to this facet of working during the pandemic.

Another problem with the CDC’s latest guidance? We have no way of knowing who’s actually vaccinated. Because of this, many business owners are keeping mask and social distancing rules in place to protect their staff and guests. This is no doubt already leading to uncomfortable confrontations.

Staff who can’t get vaccinated for medical or religious reasons are also now being put at risk. Since we’re relying on the “honor system” regarding mask wearing and distancing, unvaccinated workers face greater risk of exposure from unvaccinated guests.

Lack of Industry-specific Guidance

We’re still learning about Covid-19. We’re still attempting to figure out best practices. And we’re still balancing the need to keep businesses open while protecting workers and the public.

But the CDC’s latest guidance isn’t helpful. Essentially, the agency is putting the onus of their recommendations on business owners and state and local policymakers. And, of course, the CDC hasn’t put forth specific guidance for restaurants, bars and other hospitality industry businesses.

The National Restaurant Association responded to the CDC’s update by saying that “restaurant operators have the option of determining how best to enforce the new guidance,” and that they wouldn’t be updating their own Covid-19 Operating Guidance just yet. Also, the NRA stated that operators would be wise to continue to work with state and local regulatory bodies to avoid falling afoul of any mandates.

Next Steps

Operators will now have to review their Covid-19 protocols, the guidance and rules in place in their local jurisdictions, and determine what’s required and what’s best for their staff. They should also consider doing the following:

Inform staff about mask, social distancing, and other Covid-19 protocols, whether they’re being kept in place, adjusted or rescinded.
Ask staff about their comfort levels in terms of serving guests who aren’t required to wear masks at all during their visits. It’s not just guest comfort that’s important.
Owners and managers need to let staff know they have their backs if they’ll be enforcing protocols.
Ownership and management must provethey’re backing up their teams. If operators think they’re facing labor challenges now, they’ll struggle even harder if they fail to back up workers who are tasked with informing guests that Covid protocols are in place.
Operators should make their protocols known—if they’re still in place—on social, their websites, via email, and in-person so there are no surprises when guests arrive.

Once again, business owners are left to deal with the aftermath of the CDC’s “recommendations.” Now more than ever, guest-facing staff need to be supported.

Image: Simone Secci on Unsplash

May 10, 2021by David Klemt David Klemt No Comments

Can You Fire Staff for Refusing Vaccine?

Can You Fire Staff for Refusing Vaccine?

by David Klemt

Can an employer terminate a staff member’s employment for refusing the Covid-19 vaccine? Current court cases seek an answer to that question.

Conversely, there are bills up for consideration in some states that aim to ban vaccine mandates.

Therefore, the current answer to the question of whether employer vaccine mandates are legal isn’t clear, yet.

It’s also important to note that this question is up for legal examination in Canada and America.

Are Employers Really Mandating Vaccines?

Of course. Well, some are. And it’s bound to continue until the question has been tested in court.

Looking at Canada, Ontario’s Ministry of Labour says employers can, in fact, make vaccines mandatory. They can also (for now, at least) demand proof of vaccination from their employees. Failing to answer the question or lying about can result in an employee losing their job.

However, the ministry acknowledges that legal and ethical issues come hand in hand with blanket vaccination mandates.

In America, the issue is no less thorny, to put it mildly.

Per a survey by Arizona State University and the Rockefeller Foundation, almost 90 percent of employers in the USA (and UK) have plans to “encourage or require vaccination for employees.”

Encouraging, of course, stands in stark contrast to requiring in a legal, ethical and moral sense.

That same survey suggests that most US employers—two-thirds—plan to use vaccination incentives rather than mandates. However, 44 percent say they’ll implement mandates if incentives don’t work. Just one-third of survey respondents say they don’t intend to require vaccinations as a term of employment.

Legal Challenges

Vaccine requirements and credentials (“vaccine passports”) have been banned in Arizona, Florida, Idaho, Montana, Texas and South Dakota.

Bills have been introduced in at least half of American states that seek to “limit mandatory COVID-19 vaccines,” per the National Conference of State Legislatures.

Lawsuits have been filed by workers in various industries in several states, including New Mexico and California.

It’s likely just a matter of time until the Supreme Court of the United States is at least asked to settle the matter of vaccine mandates.

Currently, attorneys and agencies say that employers need to inform employees of the consequences for refusing Covid-19 vaccination, including loss of employment; put a vaccination policy in place and communicate it with all employees; and include religious and medical exemptions.

That said, this matter is a long way from settled.

Could vs. Should

One thing is clear: It’s not clear yet whether employers can terminate employees for refusing vaccination. We can expect a flurry of lawsuits either way.

However, it’s important that operators realize this isn’t solely a legal question. This is in no small part a leadership question, and it’s a tough one.

As the saying goes, just because you can, doesn’t mean you should.

Operators must consider the ramifications of vaccine mandates. Moving forward, some guests may only support businesses that require vaccination for staff. Conversely, some guests may find such a requirement discriminatory and offensive, and they may boycott businesses with vaccine mandates.

It’s a difficult position for operators and staff. Our industry puts employees and the public in direct, close contact with each other. Team members are likewise in very close quarters. Close interactions for prolonged periods can spread any number of viruses, not just Covid-19.

The instinct to protect staff, their family and friends, and the public is common among operators. The past twelve-plus months have strengthened that resolve.

Incentivizing Instead

Requiring vaccination may exacerbate the current labor shortage.

Yes, there are some employees and potential new hires who will feel more comfortable knowing their coworkers have been vaccinated. However, there are also people who will refuse to work for an employer who requires vaccination. A mandate could damage recruiting severely as word gets around.

It’s reasonable to suggest that operators are best off implementing a vaccination incentive program rather than a mandate. Most people would likely agree that encouragement rather than requirement, at least regarding this topic, shows greater emotional intelligence, a cornerstone of leadership.

The CEO of the Cosmopolitan of Las Vegas reportedly hit their minimum goal of an 80-percent vaccination rate among staff last week. The resort’s incentive program offered bonus payments (among other incentives) for vaccinated employees set up in tiers:

60 Percent Vaccination Rate: $50
70 Percent Vaccination Rate: $100
80 Percent Vaccination Rate: $250
90 Percent Vaccination Rate: $350
100 Percent Vaccination Rate: $500

That program helped the company hit their goal in just a few weeks. Operators can certainly use the Cosmo as a model for encouraging vaccinations instead of requiring them. Ultimately, the choice is up to the individual operator. It isn’t an easy one.

Disclaimer

This content is for informational purposes only, and should not be used as legal or other advice. This article does not constitute legal advice, nor does any information constitute a comprehensive or complete statement of the matters discussed or the law. This information is of a general nature and does not address the circumstances of a specific individual or entity. The reader of this information alone assumes the sole responsibility of evaluating the merits and risks associated with the use of any information before making any decisions based on such information.

Image: Braňo on Unsplash

May 7, 2021by David Klemt David Klemt No Comments

Which States are Reopening this Summer?

Which States are Reopening this Summer?

by David Klemt

Around one-third of America’s population is vaccinated fully and some states are easing restrictions.

Per the CDC, not exactly America’s favorite agency, more than 40 percent of Americans have received one Covid-19 vaccine shot. Just over 30 percent have completed the vaccine process.

So, which states are planning to reopen fully for Summer 2021? We have a list of some of the states that have made their plans to reopen 100 percent known so far.

California

The Golden State plans to reopen fully on June 15. According to doctors at the University of California San Francisco, the state is nearing herd immunity. However, Governor Gavin Newsom’s target date relies on two criteria:

Vaccine supply must be sufficient enough “for Californians 16 years and older who wish to” receive inoculation.
Hospitalization rates must remain low and stable.

Illinois

Per Mayor Lori Lightfoot, the plan is for the city of Chicago to be open 100 percent by July 4. Of course, that means reopening fully right in time for one of the biggest celebratory holidays of the year. However, Governor J.B. Pritzker says Illinois could reopen in as early as the start or middle of June.

Nevada

Governor Steve Sisolak plans for Nevada to reopen fully on June 1. That said, casinos in the Silver State have a slightly different timeline. With the exception of nightclubs, dayclubs and live performances, casinos will open 100 percent June 4 if all requirements are met.

New York

According to Mayor Bill de Blasio, the plan is to reopen New York City on July 1. Governor Andrew Cuomo hopes to reopen New York State fully before that date.

Texas

Governor Greg Abbott opened the state 100 percent back in March. However, judges in the state’s 22 counties still have the authority to impose Covid-19 mitigation strategies. Hospitalization rates in a particular county rising above 15-percent hospital bed capacity for seven days would be a triggering event.

As the vaccine rollout continues, it’s likely we’ll see more states announce Summer 2021 reopening plans. Still, operators should proceed with caution and remain in compliance with state, county and local Covid-19 rules. This is, after all, a fluid situation.

There’s light at the end of the tunnel but now’s not the time to be complacent.

Image: Tim Mossholder on Unsplash

May 3, 2021by David Klemt David Klemt No Comments

Summer Stimmy, Hot Vax Summer

Summer Stimmy, Hot Vax Summer

by David Klemt

When considering event programming, operators should consider the zeitgeist of the current era in which we find ourselves.

Big brands monitor and leverage the cultural climate of a given time.

Operators can do the same, as long as they embrace authenticity, show a sense of humor, and avoid disrespect and appropriation.

Here are a couple examples operators can use for Summer 2021.

Summer Stimmy

Bud Light is tapping into America’s federal response to the pandemic—stimulus checks, to be exact—with creativity and a sense of humor.

Is it too soon? It doesn’t seem so—the levity is a welcome respite.

For all intents and purposes, it appears Bud Light is leaning heavier into the creative and promotional aspect than just humor.

Bud Light’s Summer Stimmy is a proposal to “make Summer 2021 even awesomer for people across America.”

The brand explains each “proposal” item as though they’re components of a bill up for consideration. For example, Part I, Section 1 of the Bud Light Summer Stimmy proposal carries the subtitle “Tons of Tix.” Bud Light proposes to give away 100,000 tickets for MLB, NBA, NFL, NHL, NWSL and WNBA events.

Part I, Section 2, More Awesomeness, proposes the nomination of Rob “Gronk” Gronkowski as Secretary of Summer. Additionally, the section proposes May 14 as National Gronk Day, his birthday.

Of course, Bud Light owns the term Summer Stimmy now. However, clever operators can get in on the fun (and profits) through their Bud Light rep. Or, they can get creative and come up with their own Summer 2021 promotions that leverage pent-up demand.

Hot Vax Summer

Even though it seems like forever ago, who can forget 2019 and Hot Girl Summer?

Megan Thee Stallion, one half of the infamous “WAP” duo, gets the credit for coining the phrase and creating the movement.

The “rules” for Hot Summer were simple: Women and men just needed to be “unapologetically them,” make having a good time a priority, and be free.

We all know what happened in 2020. There certainly wasn’t a Hot Girl Summer, Part Two.

Meeting new people, dating, hooking up… For the most part, none of that happened without Covid-19 tests and quarantining. That is, if those activities occurred at all.

But now we have multiple vaccines: Pfizer, Moderna, and Johnson & Johnson. AstraZeneca and Novavax have yet to be authorized by the FDA.

So, what are the Hot Vax Summer rules? Pretty simple: Get vaccinated (fully), get back out there to meet, interact and hook up.

And where do people tend to go to meet others? Restaurants, bars, nightclubs and dayclubs.

Whether to confidently and comfortably meet friends they haven’t seen for several months, make new friends, or kickstart dating, our businesses are where people want to be.

Operators need to ensure their venues are ready for the initial crush of guests clamoring to finally reclaim their social and romantic lives. So, prepare your outdoor areas; make sure indoor areas meet guest expectations for comfort so they can interact freely; and ensure your staff is ready for the welcome onslaught of eager guests.

Image: Photo by Drew Beamer on Unsplash

Man in empty restaurant and bar in Ottawa, Ontario, Canada

April 29, 2021by David Klemt David Klemt No Comments

Canadian Hospitality Needs Real Help

Canadian Hospitality Needs Real Help

by David Klemt

Restaurants, bars and other foodservice establishments throughout Canada need specific relief to survive, replace lost jobs, and return to profitability.

The seemingly endless and severe provincial restrictions is putting far too much strain on a struggling industry.

Yes, there are some federal provisions in place. No, they’re not enough.

Relief Efforts

Currently, the federal budget promises extensions for wage and rent subsidies. Those subsidies would extend to September 25, 2021.

However, most Canadians, per a Restaurants Canada survey, agree that the industry needs more help.

If additional industry-specific relief faces significant delays or doesn’t come at all, operators, employees, and their families will suffer.

No wonder, then, that 90 percent of Canadians (according to the Restaurants Canada survey) feel restaurants and bars need federal support to remain in business and continue paying staff.

Support Proposals

Of the approximately 98,000 foodservice establishments throughout Canada, about 10,000 are out of business. As of last month, 319,000 lost foodservice jobs had yet to be filled.

No other industry in Canada is facing such startling numbers. Add to that the fact that the industry contributes to four percent of Canada’s GDP, restaurants are the first employers for most Canadians, women comprise nearly 60 percent of the restaurant workforce, and visible minorities comprise over 30 percent of ownership and labor, and the situation grows even starker.

Clearly, industry-specific relief is necessary.

Restaurants Canada is campaigning for the following measures:

Extend the wage and rent subsidies through April 2022.
Develop subsidy requirements that more closely match the dire reality the industry continues to face.
Implement an employee retention and retraining credit to defray Covid-19 protocol costs.
Partial forgiveness for all government-backed loans.
Removal of merchant fees from the tax portion of restaurant bills.
Restore the meals and expenses to 100 percent on a temporary basis.
Develop and implement a culinary tourism incentive for the 2020 and 2021 tax years, using New Brunswick as a model.
Implement a rebate program that provides government reimbursement of $15 per person, per meal.
Freeze the Excise Act, including Excise Act 2021.

Act Now

It took more than a year but the industry and its supporters in America helped bring about meaningful change for restaurants, bars, and other hospitality venues.

The same can be done in Canada, and time is of the essence.

For example, the Restaurant Revival Working Group is a good start for effecting change. The group consists of government and industry representatives.

Click here to review the list of Restaurant Revival Working Group members, particularly those in government, so you can contact them.

Image: Tyler Farmer on Unsplash

Bokeh photograph of condenser microphone

April 26, 2021by David Klemt David Klemt No Comments

Live Event Venues Can Apply for Relief

Live Event Venues Can Apply for Relief

by David Klemt

Live event venue and movie theater operators can once again apply for relief grants via a Small Business Administration portal today.

This is big and welcome news for businesses that are among the hardest-hit due to the pandemic. However, the portal has yet to open at the time of publication.

It remains to be seen if the issues plaguing the SBA’s portal are no more. It also casts some doubt on a glitch-free process for Restaurant Revitalization Fund applicants.

SVO Grant Portal Problems

Today’s reopening of the Shuttered Venue Operators Grant portal is nearly three weeks in the making. A message on the homepage states that the portal has undergone “rigorous testing” to prevent further issues.

On April 8, the day the website opened for applications, it was shut down due to a “technical glitch.” Applicants are now 18 days behind in terms of applying for and receiving relief.

Unfortunately, the delay is more bad news for live event and movie theater operators. The Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act became law on December 27, 2020. That means more than 120 days will have passed just to open the application process today.

SVO Grant Details

The Shuttered Venue Operators Grant program contains more than $16 billion. There is a $10-million-dollar cap on single grants.

Importantly, eligible entities in operation on January 1, 2019, will receive grants equal to 45 percent of their 2019 gross earned revenue or $10 million. For eligible entities that began operation after January 1, 2019, grant amounts will be for the average monthly gross earned revenue for each full month of operation during 2019 multiplied by six or $10 million.

Eligible applicants include:

Live venue operators or promoters
Theatrical producers
Live performing arts organization operators
Museum operators
Motion picture theater operators, including owners
Talent representatives

Notable requirements include the following:

An eligible entity must have been in operation as of February 29, 2020; and
entities that received PPP loans on or after December 27, 2020, will have the SVO grant reduced by the PPP loan amount.

Be Ready

If you’re an operator applying for an SVO grant, be sure you’re ready to apply today.

There is a checklist for applicants on the SBA website. Click here to access and review it. There are several forms operators will need to fill out and include in their application, such as SBA Form 1623 and SBA Form 1711.

Necessary financial documents include 2019 tax returns for businesses in operation in 2019, 2020 tax returns for businesses that have filed 2020 taxes, and 2018 tax returns for non-profit applicants that have yet to end their 2020 fiscal year. Businesses that declared Chapter 11 or Chapter 13 bankruptcy must include pertinent documents.

Additionally, there are also business-specific documents required for live venue operators or promoters; theatrical producers; live performing arts organization operators; movie theater operators; and museum operators.

Image: israel palacio on Unsplash

March 15, 2021by David Klemt David Klemt No Comments

Ontario F&B Workers Petition for Phase 2

Ontario F&B Workers Petition for Phase 2

by David Klemt

A petition on Change.org seeks to include F&B workers in Phase 2 of the Covid-19 vaccine rollout in Ontario, Canada.

The petition, which can be found here, is directed toward Ontario, Canada, Premier Doug Ford.

Currently, Ontario is in the midst of Phase 1 of Covid-19 vaccination.

Phase 1

Per the official Ontario Government website, Phase 1 aims to vaccinate around 1.8 million people.

The phase breakdown is as follows:

One: High-risk populations (December through March)
Two: Mass deliveries of vaccinations (April through July)
Three: Steady state (July onward)

Those eligible for Phase 1 inoculations are:

Health care workers
Adults in First Nations, Métis and Inuit populations
Adult chronic home care recipients
Congregate living for seniors
Adults over 80 years old

According to the Covid-19 Tracker Canada website, 1,116,496 vaccine doses have been administered throughout Ontario. In total, slightly more than six percent of the Canadian population has received at least one dose.

Phase 2

The second phase seeks to vaccinate approximately nine million people.

Eligible people are:

at-risk populations;
individuals with high-risk chronic conditions, and their caregivers;
high-risk congregate settings (such as shelters, community living, etc.);
adults aged 60 to 79, in 5-year increments; and
essential frontline workers who cannot work from home.

The requirement in bold should get the attention of all restaurant, bar and foodservice workers. Ontario identifies several “essential frontline workers” eligible for Phase 2. Among them are elementary and secondary school staff, police, firefighters, special constables, and social counselors.

However, high- and low-risk retail workers are on the list while restaurant and foodservice workers are not.

The Petition

Cassie MacKell is the person behind the petition to “Include Restaurant & Food Service Workers on Ontario’s Phase 2 Vaccination List.”

MacKell’s opening statement says, “I write this letter as a cry for help from the entire Food & Beverage industry of Ontario in regard to Ontario’s phase vaccine distribution plan.”

The petition’s creator goes on to say:

“As one of the hardest hit industries from Covid-19 why am I not seeing restaurants workers on this list? From the outset of the Covid-19 pandemic restaurants across Ontario have been heavily regulated and shut down by Premier Ford. Even after adhering to stringent restrictions and safety guidelines set forth by our government the framework continues to keep us closed, or only allows for limited seating capacity making it impossible for many businesses to survive.”

In closing, MacKell lays bare the situation for Ontario (and indeed all of Canada) foodservice professionals. Workers in this industry are exposed to people not wearing masks while they eat or drink; are unable to remain six feet from guests; and certainly can’t work from home.

Put bluntly, all those who work in foodservice are high-risk frontline professionals. If you agree and live in Ontario, Canada, please sign this petition.

Image: Alena Shekhovtcova from Pexels

February 3, 2021by David Klemt David Klemt No Comments

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