Restaurant industry news

Fanned out hundred dollar bills
by David Klemt David Klemt No Comments

So, What’s Up with that $180 Million?

So, What’s Up with that $180 Million?

by David Klemt

Fanned out hundred dollar bills

It’s not much in comparison to the $40 billion we need to replenish the Restaurant Revitalization Fund but $180 million is still significant.

According to a June 14 report, the Small Business Administration is sitting on $180 million in RRF funds. This information came to light due to a Government Accountability Office (GAO) investigation.

Unfortunately but unsurprisingly, the funds likely won’t reach operators for a while. Why is that? Well, the SBA is working with the Justice Department to “formulate a plan on how to distribute” the money.

As we know, bureaucracy tends to move at a glacial pace. Additionally, $180 million is nowhere close to the roughly $42 billion it would take to fund RRF applicants who have not received grants.

Where did this Money come From?

We know that $24 million is from funds set aside by the SBA for litigation. However, according to the National Restaurant Association, the American Rescue Plan Act of 2021 didn’t expressly include such a set aside.

Interestingly, the NRA is calling for the SBA to disperse the litigation set aside to RRF applicants. This is due to their interpretation of “the spirit of the law” and unobligated funds.

Now, on to the biggest chunk of the tens of millions of dollars in unawarded, unobligated RRF money. Where, exactly, are these funds from?

Well, it’s a little murky at the moment. Per the GAO, awards returned by either recipients or their financial instutions amount to $56 million. The rest, according to the GAO, comes from “realized or anticipated recoveries,” per their report.

However, some sources report that $156 million was clawed back by the SBA and that the $24 million set aside make up the $180 million.

So, Who gets the Money?

In short, we don’t know yet. In fact, we don’t even know if RRF applicants will have to apply again for a piece of the $180 million.

Additionally, we don’t know if applicants who received an approval for an RRF grant but didn’t receive the award will be processed first.

What we do know is that if every dollar of this “leftover” $180 million is distributed to RRF applicants, a mere 0.44 percent would receive a grant.

As Nation’s Restaurant News reports, 150,166 RRF applicants were in fact approved for a grant but never received one. It would take over $41 billion to fund all 150,000-plus applicants.

When the Justice Department and SBA finalize a plan, we’ll let you know.

Image: John Guccione on Pexels

High-end plate of food
by David Klemt David Klemt No Comments

2022 World’s 50 Best Restaurants: 51-100

’22 World’s 50 Best Restaurants: 51-100

by David Klemt

High-end plate of food

Just a week away from their big 2022 reveal, numbers 51 through 100 of the World’s 50 Best Restaurants is now available.

As one expects, these restaurants represent the pinnacle of dining. The 2022 list also represents a number of changes in comparison to 2021.

For example, a number of restaurants in the Middle East are among this year’s 51 to 100 rankings. Notably, these restaurants were not included on last year’s list. In fact, nearly half of the restaurants are new entries on the 51 to 100 list.

Additionally, the 2022 list represents six continents. This year, four “new” countries and a sovereign island city-state make the 51 to 100 rankings:

  • Argentina
  • China
  • Germany
  • Singapore
  • UAE

The regional breakdown is as follows:

  • Asia: 14 restaurants
  • Europe: 13 venues
  • North America: 11 concepts
  • Middle East: 2 restaurants
  • Africa: 2 concepts
  • Oceania: 1 venue
  • South America: 7 restaurants

Just six American restaurants are on the list. Three are in New York, two in San Francisco, and one is in Chicago. Disappointingly, zero Canadian restaurants are among the 51 to 100 rankings.

Restaurants one through 50 will be revealed on Monday, July 18. Numbers 51 to 100 of the World’s 50 Best Bars will be revealed Tuesday, September 27.

The World’s 50 Best Restaurants 2022: 51 to 100

  1. Alcalde (Guadalajara, Jalisco, México)
  2. Sud 777 (Ciudad de México, México)
  3. D.O.M. (São Paulo, SP, Brazil)
  4. Lyle’s (London, England)
  5. Azurmendi (Larrabetzu, Biscay, Spain)
  6. La Colombe (Cape Town, Western Cape, South Africa)
  7. Trèsind Studio (Dubai, UAE)
  8. Alléno Paris au Pavillon Ledoyen (Paris, France)
  9. Sazenka (Tokyo, Japan)
  10. Rosetta (Ciudad de México, México)
  11. La Grenouillère (La Madelaine-sous-Montreuil, France)
  12. Ernst (Berlin, Germany)
  13. Chef’s Table at Brooklyn Fare (New York, NY, USA)
  14. Fu He Hui (Shanghai, People’s Republic of China)
  15. Le Du (Bangkok, Thailand)
  16. Sühring (Bangkok, Thailand)
  17. Evvai (São Paulo, SP, Brazil)
  18. Kjolle (Barranco, Lima, Perú)
  19. Cosme (New York, NY, USA)
  20. Zén (Singapore)
  21. Mingles (Seoul, South Korea)
  22. Atelier Crenn (San Francisco, CA, USA)
  23. Kol (London, England)
  24. Blue Hill at Stone Barns (Pocantico Hills, Mount Pleasant, NY, USA)
  25. Samrub Samrub (Bangkok, Thailand)
  26. Neighborhood (Hong Kong)
  27. Table by Bruno Verjus (Paris, France)
  28. Lasai (Rio de Janeiro, RJ, Brazil)
  29. Estela (New York, NY, USA)
  30. AM par Alexandre Mazzia (Marseille, France)
  31. Brat (London, England)
  32. Sézanne (Tokyo, Japan)
  33. El Chato (Bogotá, DC, Colombia)
  34. Gimlet at Cavendish House (Melbourne, Victoria, Australia)
  35. Raan Jay Fai (Bangkok, Thailand)
  36. Mikla (Beyoğlu/İstanbul, Turkey)
  37. Orfali Bros Bistro (Dubai, UAE)
  38. Mishiguene (Buenos Aires, Argentina)
  39. Máximo Bistrot (Ciudad de México, México)
  40. Wolfgat (Paternoster, Western Cape, South Africa)
  41. Oriole (Chicago, IL, USA)
  42. Indian Accent (New Delhi, Delhi, India)
  43. Hertog Jan at Botanic Sanctuary (Antwerp, Belgium)
  44. Burnt Ends (Singapore)
  45. Meta (Singapore)
  46. Maní (São Paulo, SP, Brazil)
  47. Benu, San Francisco, CA, USA)
  48. Tantris (München, Germany)
  49. Flocons de Sel (Megève, France)
  50. Wing (Hong Kong)

*Bold denotes new entry

Image: Delightin Dee on Unsplash

Super Mario Bros. game booth
by David Klemt David Klemt No Comments

After RRF Failure, What’s Next for Us?

After RRF Failure, What’s Next for Us?

by David Klemt

Super Mario Bros. game booth

After the US Senate failed to even debate the Restaurant Revitalization Fund, instead opting to let it die, what’s next?

Obviously, trusting our elected officials to do the right thing isn’t a viable option. After all, the Senate slow-walked the RRF’s death march. It took six weeks after the House voted “yes” on RRF for senators to filibuster the bill to death.

Last Thursday, the National Restaurant Association addressed moving forward. Sean Kennedy, executive vice president of public affairs, released a 90-second video in which he spoke about the RRF and where we are now.

Reconciliation?

One of the first options Kennedy proposes in his video is a reconciliation bill. That, however, is highly unlikely to come to fruition.

So, what’s a reconciliation bill? Simply put, it has to do with the Senate’s supermajority requirement.

In order for a bill to advance to a vote, 60 percent of the Senate must support ending a filibuster. On that topic, a filibuster is a procedural tool that prolongs a debate. The filibuster is used to delay or prevent a vote on a bill, resolution, etc.

Now, a budget reconciliation bill circumvents the supermajority requirement. A simple majority—51 senators for the US Senate—is all it takes to override a filibuster in this instance.

Technically, from what I’ve come to understand, the Senate can pass a maximum of three budget reconciliation bills in a year. Most often, it passes a single such bill per year.

Obviously, Kennedy feels that this would be a longshot to cross our fingers and hope the RRF is funded via these means.

Staying Ready

As they say—yes, “they”—if you stay ready, you don’t have to get ready. According to Kennedy, the NRA is prepared to act in any way they can should replenishing the RRF or similar aide once again become an option.

“We’re gonna continue to closely monitor the situation and we certainly can activate if there any signs of movement,” he says. “We’re not seeing them yet.”

The “yet” there is perhaps a bit hopeful. And as we like to say, hope isn’t a strategy. However, optimism is far healthier than pessimism and hopelessness.

Additionally, Kennedy and the NRA are grateful to the bipartisan group of representatives and senators who have shown their support for our industry and replenishing the RRF.

“We’re incredibly appreciative of the works of our champions in Congress,” says Kennedy.

In particular, he acknowledges Senate Majority Leader Chuck Schumer (D-NY), and senators Ben Carden (D-MD), Roger Wicker (R-MS), Kyrsten Sinema (D-AZ). In the House, Kennedy thanks Speaker of the House Nancy Pelosi (D-CA), and representatives Earl Blumenauer (D-OR), Dean Phillips (D-MN), Brian Fitzpatrick (R-PA).

What’s Next?

As Kennedy says, much of what he discussed with people at the 2022 NRA Show centered around this very topic. Just what are we supposed to do moving forward?

Unfortunately, there’s no clear answer, no simple solution we can point to and implement.

Instead, we have several issues we must navigate to keep restaurant and bar doors open:

  • What can we do to more effectively recruit and retain staff?
  • How can we best address increases in food costs and problems with availability?
  • Is there a way to address rising credit card transaction fees?

Of course, that’s but a handful of what we must address and solve. And at least when it comes to the first question, we know some of the elements for the solution:

  • Treat staff with respect.
  • Value diversity, equity, and inclusion.
  • Improve pay and offer benefits.
  • Develop a healthy company culture and workplace.

On the topic of state and local policymakers, expecting help is a dicey proposition.

Unless they engage with the owners, operators, and industry professionals in their states, counties, cites, and towns, they’ll hurt these businesses. The only effective and helpful way forward is for them to engage with us and not simply introduce and pass legislation that hurts. Possible, of course, but a big ask as we’ve seen proven time and time again.

Image: Minator Yang on Unsplash

Plantspired plant-based foods
by David Klemt David Klemt No Comments

Plants Dominate 2022 NRA Show

Plants Dominate 2022 National Restaurant Association Show

by David Klemt

Plantspired plant-based foods

The National Restaurant Association Show is back in a big way, and meat alternative brands are establishing themselves as much more than a trend.

In particular, plant-based brands made their presence known in the Lakeside Center.

However, some big companies also showcased their animal alternatives in the South Building. Among them, Beyond and Daiya.

Notably, Daiya brought with them their freshly reformulated cream cheese alternative. They also had a creamy, flavorful queso at their booth.

Chik’n

Unsurprisingly, meatless chicken—often stylized as “chik’n”—dominated the NRA Show floor.

Morning Star Farms chicken

However, exhibitors showed off more than just nuggets and fingers. This year was more about innovation.

For example, more than one company is rolling out chik’n wings. Of course, there are no bones, so they’re more akin to nuggets.

Essentially, these chicken alternatives are boneless “wings.” And as we all know, boneless chicken wings are just chicken chunks with better marketing.

Really, it’s the seasoning, heat, and shape that define the chik’n wing. At least, that’s what they are for now. I expect further innovation and refinement for these wings.

Daring plant-based chicken

Interestingly, some brands appear to be taking on the chicken breast. Now, there weren’t many meatless companies featuring these on the NRA Show floor. Still, there were a couple and their products looked the part.

The textures are also quite close to their meaty counterparts. But I think there’s still work to do.

Plant-based Seafood

Of all the plant-based alternatives, seafood was the star. The CEOs of big brands have been working on these products for several years.

Well, we certainly saw the fruits of their investments at this year’s NRA Show.

Fish fillets, crab cakes, fish patties (including salmon), fish sticks, tuna flakes, shrimp… All were available to sample at exhibitor booths.

Crucially, the flavors and textures were close to the real thing. However, the shrimp mostly relied on being coated in seasoning to mimic their animal-based counterpart.

That said, seeing so many brands committed to bringing plant-based seafood to market was impressive.

Further, the seafood-focused companies are touting the eco-friendliness of their products. Plant-based seafood, they say, can help stop overfishing and stop the reduction of biodiversity in our oceans.

If they appeal to consumers and reduce harm to the planet, these products could perform well in foodservice. Good for the planet and good for the bottom line seems like a win-win to me.

Takeaway

As the 2022 NRA Show showed, plant-based is no longer a trend. These products ceased being a fad long ago.

Now, it’s clear the category is here to stay. The products categories like chik’n are seeing more innovation. Seafood will improve. Other meat alternatives are also improving.

Of course, whether they’re healthy, well, that’s another story. However, consumers seem to want these items regardless.

One thing is obvious, though: The plant-based category is proliferating and will soon reach ubiquity.

Images taken by author

Top