Food truck

Piggy bank wearing a face mask
by David Klemt David Klemt No Comments

Tell the Government to Refill the RRF

Tell the Government to Refill the RRF

by David Klemt

Piggy bank wearing a face mask

The National Restaurant Association is urging restaurant, bar and other hospitality operators to sign a Restaurant Revitalization Fund petition.

Put concisely, the NRA’s petition asks the federal government to replenish the RRF.

Grants are going out and there’s no guarantee the $28.6 billion fund is enough for every eligible business. Therefore, the NRA is calling for more funds.

The Petition

Now, there is good news regarding the RRF. Per the Small Business Administration, 21,000 applicants have received $2.7 billion in grants.

However, when one considers that well over 180,000 grant applications were submitted within the first 48 hours, the $28.6 billion will more than likely run out before every eligible business receives a grant. The first 16,000 grants alone total $2 billion.

According to one source, priority applications carry a value of approximately $29 billion. Obviously, that’s more money than is in the fund.

And that’s only the value of applications receiving priority for the first 21 days. Clearly, more funding is necessary.

As the NRA’s petition states, “We are urging policymakers in Washington—from the White House to Capitol Hill—to replenish the RRF to maximize relief for small independent and franchise restaurant operators. Americans can’t wait to get back into their favorite restaurant with their family and friends, and the federal government can play a key role in making that a reality.”

Click here to sign the NRA’s petition. Our industry is the hardest hit by the pandemic and every eligible business deserves funding.

It’s not that this industry isn’t grateful—it’s that hundreds of thousands of businesses are fighting to stay alive. They’ve been doing so for more than a year.

The RRF

The SBA’s RRF portal link is https://restaurants.sba.gov. Alternatively, operations can use a POS that’s an SBA partner to apply. Partner systems include Clover, NCR, Square, and Toast.

According to the SBA website, certain eligible entities will be given priority.

For the first 21 days the application process is open, priority will go to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

The application process should open to every applicant on Monday, May 24. For more in-depth information, operators can follow the appropriate links to review the Small Business Administration’s RRF program guide and sample application.

Applicants do not need to register with SAM.gov (System for Award Management) or provide DUNS or CAGE identifiers.

To calculate a grant amount, an applicant subtracts 2020 gross receipts from 2019 gross receipts. Applicants must deduct first-draw PPP and second-draw PPP loans. Any economic disaster loans—Economic Injury Disaster Loans, for example—are not RRF deductions.

Again, please click here to sign the NRA’s petition today.

Image: Konstantin Evdokimov on Unsplash

Man in empty restaurant and bar in Ottawa, Ontario, Canada
by David Klemt David Klemt No Comments

Canadian Hospitality Needs Real Help

Canadian Hospitality Needs Real Help

by David Klemt

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

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

Modern neon sign hanging in window
by David Klemt David Klemt No Comments

RRF Applications Open Monday

RRF Applications Open Monday

by David Klemt

Modern neon sign hanging in window

In long overdue but very welcome news, the Small Business Administration’s RRF portal opens to accept applications on Monday.

Operators and business owners will be able to register this Friday, April 30.

We definitely recommend doing so to make the application process simpler and (hopefully) less frustrating on Monday, May 3.

What You Need to Know

Mainly, the following: The SBA’s RRF portal link is https://restaurants.sba.gov. It would probably be a good idea to go ahead and bookmark that site now.

Alternately, operators using an SBA POS partner to apply. Partner systems include Clover, NCR, Square, and Toast.

Per the SBA, operators will be able to register via the website beginning at 9:00 AM EST on Friday. Again, it would be wise to plan on doing exactly that.

Anything that can be done to speed up the application process opening Monday should be done.

According to the SBA website, certain eligible entities will be given priority. For the first 21 days the application process is open, priority will be granted to small businesses with a minimum of 51 percent ownership by women, veterans or socially disadvantaged people.

However, all eligible owners and operators should register on Friday and apply on Monday. Doing should, in theory, help applicants secure their grants in a more timely manner.

RRF Preparation

The SBA’s Restaurant Revitalization Fund portal opens at noon ET on Monday. It’s best to prepare as much as possible as it’s likely applicants may find themselves in a queue depending upon traffic.

Operators can calculate their grant amounts with the following equations for applicants:

  • in operation prior to or on January 1, 2019: 2019 gross receipts minus 2020 gross receipts minus PPP loan amounts.
  • that began operations partially through 2019: (Average 2019 monthly gross receipts x 12) minus 2020 gross receipts minus PPP loan amounts.
  • who began operations on or between January 1, 2020 and March 10, 2021: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts
  • not yet opened but have incurred eligible expenses: Amount spent on eligible expenses between February 15, 2020 and March 11, 2021 minus 2020 gross receipts minus 2021 gross receipts (through March 11, 2021) minus PPP loan amounts

Note: Entities who began operations partially through 2019 may elect, at their own discretion, to use either calculation two, three or four above.

For further guidance and to prepare as much as possible, please click here for the SBA’s RRF guide, and click here to review the sample application.

The Independent Restaurant Coalition also has a handy checklist posted to Instagram:

Good luck!

Image: Prateek Katyal on Unsplash

Person pulling apart melty grilled cheese sandwich
by David Klemt David Klemt No Comments

Grilled Cheese Day: Mastering the Melt

Grilled Cheese Day: Mastering the Melt

by David Klemt

Person pulling apart melty grilled cheese sandwich

There are few comfort foods more popular than a well-made, melty grilled cheese sandwich.

It’s such a perfect comfort food that it has its own national holiday in the United States.

National Grilled Cheese Sandwich Day is April 12 in the US. From what I’ve read, Canada also gets in on the fun.

Melt Mastery

If you want to make the best grilled cheese sandwiches, not just any cheese will do.

The saying goes that you can’t squeeze blood from a stone. Well, you also can’t squeeze a melt out of a hard cheese cheese.

So, you want to make one of the comfiest of comfort foods. Cheese selection matters. Here’s what to consider:

  • Moisture content. Hard cheeses have very little water content and therefore don’t fully liquify.
  • Fat content. Cheeses with a high fat content melt very well.
  • Acidity. Cheeses that are highly acidic get stringy when melted. Acid-curded cheeses (vegan, many goat cheeses) don’t melt much, if at all.
  • Age. If you want melty cheese that results in that visually appealing cheese pull, look for fresh and unaged cheeses.

Melt Mates

It’s tempting to throw the cheese drawer at a sandwich. If one cheese is great, more cheeses are even better, right?

Wrong. Certain cheeses melt together better than others. Consider this:

There are restaurants that have grilled cheese eating challenges. Complete such a challenge, bask in glory forever. The reason this particular challenge must be completed quickly is melting points. As the sandwich cools, the cheeses congeal. The harder, lower-fat cheeses make it much more difficult to finish the admittedly ridiculous challenge sandwich.

So, which challenges melt the best and tend to play well together? Check out the list below:

  • American
  • Blue Cheese
  • Brie (works particularly well with fruit slices, jam and aged Cheddar)
  • Cheddar (look for younger versions for the best melt)
  • Colby
  • Comté
  • Fontina
  • Gruyère (again, younger versions tend to be better for grilled cheese sandwiches)
  • Monterey Jack
  • Mozzarella
  • Muenster
  • Pepper Jack
  • Provolone
  • Raclette
  • Taleggio

Become Legend

Comfort foods have become big-time revenue generators during the pandemic in America and Canada. There’s no reason to believe that’s going to change any time soon.

Master your melt and your sandwiches will become legend. Master the sides, dips and other accoutrements that enhance your legendary sandwich(es) and you’ll become a grilled cheese god.

Image: Nathan Dumlao on Unsplash

Chess pieces on a chessboard
by David Klemt David Klemt No Comments

Restaurant or Bar Dream? Make Your Move

Restaurant or Bar Dream? Make Your Move

by David Klemt

Chess pieces on a chessboard

If your dream is to open a restaurant, bar or nightclub, you’re not doing yourself any favors by waiting to make it a reality.

The same goes for starting up any other type of hospitality business.

We’re in uncharted territory and things seem unstable. But waiting to move forward with your concept is setting you back.

Industry Challenges

We can all agree that the destruction wrought upon the hospitality industry in 2020 continues to be felt today.

Tens of thousands of business closures. Millions of jobs and hundreds of billions of dollars in revenue lost.

Some experts say the veteran operators and workers won’t be back. The financial damage and psychological trauma will drive them out of the industry. Others disagree, myself included, saying those operators won’t stay down for long. This industry works its way into people’s blood.

The pandemic is responsible for the permanent or long-term closure of nearly 20 percent of restaurants in America. Most of the restaurants lost were well-established operations. The industry is down 2.5 million jobs that it will take years to recover.

Since March of last year, Canada has seen the closure of 10,000 restaurants. The country is facing the loss of 800,000 industry jobs.

Waiting to open a restaurant or bar, therefore, seems to make sense. Only no, it doesn’t.

Don’t Wait

Time is rarely on anyone’s side. And I’m not the first to say that perfection is an illusion. Our industry would be a fraction of what it is if people chose to wait for the “perfect time” to open.

That doesn’t mean it’s great to throw caution—and hundreds of thousands of dollars—to the wind.

Rather, those with a vision for a business in this industry owe it to themselves to move forward.

Let me put it this way: If you have an idea but you’re waiting for “the right time,” you’re already behind.

Forward Progress

The key is being strategic, making calculated decisions.

There are operators who successfully opened new concepts in the midst of the pandemic. We’re going to see new entrants in this industry this year as well. Will you be among them?

Maybe you’re not ready to break ground or sign a lease. Perhaps you’re not ready to send in a crew to renovate a space.

However, there are crucial moves you can make so that when you’re ready ready, you can move quickly. Think agility.

Will you be applying for a grant to fund part of your business? Complete the paperwork and submit it now.

Do you need a consultant? Do your research now and schedule those conversations.

You need demographic, feasibility and other studies done. Will you do them? Will you retain the services of an industry researcher?

If you’re not yet ready, take meaningful steps today because your future competitors are making their moves. It takes longer than you think for each crucial step to be completed, and there are dozens.

Your concept won’t become a reality if it only lives in your head. Don’t watch your opportunity to thrive in this industry pass you by.

Image: Kei Scampa from Pexels

US Capitol Building Dome
by krghospitality krghospitality No Comments

House Passes $1.9B Covid Relief Bill, RRF

House Passes $1.9B Covid Relief Bill, RRF

by David Klemt

US Capitol Building Dome

The Senate version of the American Rescue Plan Act of 2021 is through the House, awaiting the signature of President Joe Biden.

Once the bill is signed by the president, it will be the law of the land.

That means our industry is finally receiving at least a portion of the relief it so desperately needs. After nearly a year of campaigning and fighting, the Restaurant Revitalization Fund (RRF) is a reality.

Restaurant Revitalization Fund

Managed by the Small Business Administration properly, the RRF is a critical lifeline for small- and mid-sized operators.

The SBA will prioritize women- and veteran-owned and operated businesses for the first 21 days. Economically and socially disadvantaged businesses will also receive priority.

Maximum grant amounts are $5 million per individual restaurant or $10 million per restaurant group.

Eligible Expenses

Importantly, eligible expenses fall between February 15, 2020 through December 31, 2021.

Eligible expenses include but are not limited to:

  • payroll and benefits;
  • mortgage (no prepayment);
  • rent (no prepayment);
  • utilities, maintenance;
  • supplies (including PPE and cleaning materials);
  • food;
  • operational expenses;
  • covered supplier costs (as defined by the SBA under the PPP program); and
  • sick leave.

American Rescue Plan Provisions

Of course, the RRF is just a small portion of the American Rescue Plan. The bill includes many provisions for national Covid-19 testing and vaccine distribution.

States and local governments receive $20 billion to assist low-income households with rent, utility bills, and back rent. There’s an increase to benefits of 15 percent through September for those on food stamps.

Also, the Emergency Injury Disaster Loan (EIDL) program receives $15 billion, which will help small business owners.

The $300-per-week federal boost to unemployment benefits remains the same rather than climbing to $400 per week.

Crucially, the bill waives the first $10,200 of unemployment benefits from 2020. That amount rises to $20,400 for married couples. To receive the waiver, a household must have an adjusted gross income of $150,000. That AGI is the same for individual and combined households.

Individuals with an AGI of up to $75,000 will receive stimulus payments of $1,400. That amount phases out completely at $80,000 for individuals, $160,000 for couples.

What’s Next

The SBA is responsible creating and implementing the RRF application process.

For now, it’s wise for operators to calculate their grant amounts:

  • Open prior to 2019: 2019 revenue minus 2020 revenue minus PPP loans.
  • 2019 opening: Average of 2019 monthly revenues times 12 minus 2020 revenues.
  • 2020 opening: Eligible to receive funding equal to eligible expenses incurred.

Since the SBA is the agency overseeing the $28.5 billion RRF, it’s a good idea to monitor their site for pertinent dates, details and requirements.

Image: Joshua Sukoff on Unsplash

Lower-case neon open sign
by David Klemt David Klemt No Comments

Senate Boosts RRF to $28.6 Billion

Senate Boosts RRF to $28.6 Billion

by David Klemt

Lower-case neon open sign

On Saturday, the Senate approved their version of the $1.9 trillion Covid-19 relief bill along party lines.

Next, the bill will go back to the House and could receive a vote as early as tomorrow.

Boost to RRF?

According to several sources, the Senate’s version of the American Restaurant Plan Act (ARPA) includes a $3.6 billion boost to the $25 billionRestaurant Revitalization Fund (RRF).

If that’s accurate and the House passes this version of the ARPA, the RRF has $28.6 billion to disburse.

Five billion dollars will be set aside specifically for businesses that grossed less than $500,000 in receipts in 2019.

Mostly a Good Start?

The RRF is modeled on the RESTAURANTS Act.

Unfortunately, it isn’t funded like the RESTAURANTS Act. The industry has been campaigning for nearly a year for a $120 billion fund.

More than 110,000 restaurants and bars have been lost throughout the United States permanently. In addition, the industry has lost around $220 billion in sales.

The RRF isn’t even a quarter of what the industry was asking for in terms of help from elected officials.

Still, if managed properly, the RRF is much-appreciated and much-needed relief for small and mid-sized operators.

The Details (So Far)

The Small Business Association (SBA) will manage the RRF. For the first 21 days, businesses owned or controlled by women or veterans—or that are economically and socially disadvantaged—will be prioritized for grants.

Maximum amounts for grants are $5 million per individual restaurant or $10 million per restaurant group.

Established restaurants can calculate their grants thusly: 2019 revenue minus 2020 revenue minus PPP loans. For restaurants that were opened in 2019, the calculation is the average of 2019 monthly revenues times 12 minus 2020 revenues. Restaurants opened in 2020 are eligible to receive funding equal to eligible expenses incurred.

Grants can be spent on eligible expenses from February 15, 2020 through December 31, 2021. However, the SBA may extend that period through two years from enactment.

Eligible expenses include but are not limited to:

  • payroll and benefits;
  • mortgage (no prepayment);
  • rent (no prepayment);
  • utilities, maintenance;
  • supplies (including PPE and cleaning materials);
  • food;
  • operational expenses;
  • covered supplier costs (as defined by the SBA under the PPP program); and
  • sick leave.

The fight for relief isn’t over. Please click here to tell your representatives to pass ARPA and the RRF immediately.

Image: Finn Hackshaw on Unsplash

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