Restaurant | KRG Hospitality

March 19, 2021by krghospitality krghospitality No Comments

Kitchen Showdown: Virtual vs. Ghost

Kitchen Showdown: Virtual vs. Ghost

by David Klemt

The lines between virtual and ghost kitchens are growing increasingly blurry as they rise in popularity.

The terms aren’t interchangeable—they’re separate concepts.

Let’s snap the two into focus so operators can decide for themselves which, if either, is for them.

Virtual Kitchen

A virtual kitchen or virtual restaurant supports a brick-and-mortar concept. This includes food trucks.

Standard process is as follows:

A concept in a certain category seeks to expand their menu options without diluting or otherwise damaging their brand.
They create new menu items and sometimes a new brand.
Their existing kitchen or kitchens create these new items, which are online- and delivery-only.

A virtual kitchen has a brick-and-mortar location in a technical sense, but the brand’s existence is essentially digital as far as consumers know.

Ghost Kitchen

These facilities are delivery-only and commonly produce virtual brands’ items, which is a possible source of the confusion surrounding ghost and virtual kitchens. A truly virtual brand is only available online, either via its own ordering site or a delivery app—it has no brick-and-mortar location of its own.

We’ve known since the Chicken Wars first started that chicken sells, apparently in all forms. Several virtual brands, largely focused on wings and sandwiches, are succeeding with the help of ghost kitchens.

However, ghost kitchens also rent themselves out to or otherwise enter into contracts with third-party concepts with brick-and-mortar locations of their own to produce their delivery menu items.

The explosive rise of delivery is driving investment in ghost kitchens (former Uber executive Travis Kalanick’s CloudKitchens is an excellent example). It’s also the reason that so many industry experts and speculators declare ghosts “the future of restaurants.”

Not the Same

This quick rundown should clarify the differences between virtual kitchens and ghosts. Their missions may be similar but their operations are not.

Image: Charles Deluvio on Unsplash

March 18, 2021by David Klemt David Klemt No Comments

Is Gen Z the Workforce Solution?

Is Gen Z the Workforce Solution?

by David Klemt

Is Gen Z the solution to the industry’s workforce problem?

That’s one big question posed during the 2021 Restaurants Canada Show.

A panel consisting of Philip Mondor, president and CEO of Tourism HR Canada; Adam Morrison, president and CEO of Ontario Tourism Education Corporation; Jody Palubiski, CEO of the Charcoal Group; and Lori Wilson, manager of people and change at BDO Consulting have answers.

The Problem

Canada’s hospitality industry is facing a labour shortage. In fact, that has been the case since before the pandemic.

According to several sources, the hospitality industry is Canada’s fourth-largest private-sector employer. And yet, there’s a labour crisis.

This is partially due to Baby Boomers retiring. As they leave the workforce, there’s a disparity in the number of people in Canada working or seeking work.

According to a January 2020 report from The Globe and Mail, there were at least 60,000 empty positions in foodservice before Covid-19 lockdowns.

Mondor concurs with that article’s sentiment. He expects “a very large shortfall” over the next year that could force the industry into a four-year recovery.

The Solution?

Neither Wilson, Mondor, Morrison or Palubiski see Gen Z as the solution to Canada’s labour shortage problem.

Now, that isn’t to suggest that operators and managers should dismiss Gen Z. Rather, Mondor suggests including this generation as they enter the workforce without viewing them as the only solution.

“Relying on youth alone is not going to meet the demand,” says Mondor.

Instead, Mondor posits that new Canadians—immigrants—will play a significant role in the hospitality industry moving forward. In fact, Mondor expects immigrants to make up 50 percent of Canada’s workforce.

Recruitment and Training

Palubiski says that what separates Gen Z from other generations is how connected and informed they are. Screen time provides Gen Zers plenty of information about social, regional and global issues.

To recruit Gen Z, Palubiski suggests brands and businesses be transparent about their stances on issues such as sustainability and the climate.

However, that approach to recruiting isn’t just effective when it comes to Gen Z—employees and guests alike want to know where a brand stands.

Morrison says that it’s important to be cognizant of the employment market. Knowing what people are being paid, even if an operator can’t match or beat that rate, is helpful. It’s also part of an effective strategy, says Morrison, to understand the ambitions of candidates to see if available roles will match their motivations.

Retention

Once an operator has built a team, the next step—training—is key to staff retention. And not just training for the specifics of one particular role in a restaurant or bar.

Rather, the panel agrees that this industry does a poor job of documenting transferrable skills. For example, operators can help develop employees’ leadership and conflict resolution skills (among many others) that they can take into other careers. Operators must explain that benefit to employees and help nurture it.

Additionally, the panel suggests looking at training and retention in the following ways to adapt and make businesses in this industry stronger:

Invest in people, don’t just hire them. That means training and developing their skills and careers.
View hiring and training as investments, not costs.
Everyone makes mistakes. True leaders admit their mistakes, fix them, and move forward.
Ask this question: Do your employees feel a greater affinity for this industry and your business after they’ve started working with you?

In parting, operators and managers should consider this: Palubiski had to furlough 950 employees due to the pandemic. A staggering 95 percent returned when they were called back. That is effective hiring, training, development and retention to emulate.

Image: Jason Leung on Unsplash

March 16, 2021by David Klemt David Klemt No Comments

Rediscovering Your Guests in 2021

Rediscovering Your Guests in 2021

by David Klemt

Labatt Breweries of Canada wants operators to get to know their guests all over again in 2021.

Luckily, this isn’t a massive undertaking. However, it requires commitment and an understanding of altered consumer behavior.

During the 2021 Restaurants Canada Show, Labatt presented “Rediscover Your Guest: The 2021 Consumer.”

Christina Veira, bar and beverage curator for the RC Show, hosted the digital session. Labatt panelists included Michelle Tham, head of education and certified Cicerone, and Megan Harris, director of insights and strategy. Casey Ferrell, vice president of US and Canada Monitors for Kantar Consulting rounded out the panel.

Who’s Your 2021 Guest?

The good news is that Canadians are still consuming beverage alcohol. The less-good news is that they’ve gotten used to drinking mainly at home.

In fact, per Megan Harris, 95 percent of beverage alcohol occasions now happen at home. Harris also says there’s excitement about a return to in-person restaurant and bar service. However, several pandemic-driven behaviors will persist, including:

Takeout
Delivery
Daytime drinking
Working from home

Guests are set to unleash a torrent of pent-up demand when they can safely return to restaurants and bars. They want to indulge themselves, have fun and new experiences, but also feel safe.

Generally speaking, younger guests are more tolerant of risk. Conversely, guests over 50 years old are more cautious.

Vaccine Influence

Per Ferrell, there are four distinct vaccine groups in Canada and the United States:

People have gotten a Covid-19 vaccine.
People who can’t wait to get a Covid-19 vaccine.
People who are unsure about Covid-19 vaccines.
People who refuse to get a Covid-19 vaccine.

Ferrell says to remove the final group on that list. Doing so shows that about two-thirds of Canadians (and Americans) are in the process of getting the vaccine. Therefore, operators need consider how to address vaccination safety along with vaccination requirements for guests and employees. For Ferrell, the best lever to pull is the one that addresses Covid-19 and vaccine risks.

Additionally, just because the calendar ticked over to 2021 doesn’t mean everything is different. Accordingly, Ferrell feels that Q1 is the “More of 2021” stage of this year. He expects people to open up their bubbles during possibly Q2 or Q3, the “Less Covid-19” stage. Parties that include multiple households will return in force in Q4.

How to Meet 2021 Guest Expectations

First, we must be cautious when people return to restaurants, bars and other venues en masse. That initial boost in traffic driven by pent-up demand will ebb quicker than one would expect.

To get people through the doors, operators will need to focus on:

health and safety;
staff expectations and training;
social interactions and the joy deficit; and
guest experience and journey.

Harris sums up the first point succinctly: Anything that can be touchless, should be touchless. Operators should expect contactless features to remain moving forward. The expectation for hygiene will also remain. Guests will want to see employees cleaning and sanitizing, for instance.

Speaking of employees, operators must address the role they’ll plan in crowd management. Unfortunately, management and employees will have to be ready to enforce health and safety protocols strongly.

As Ferrell notes, long-term lockdown means large swaths of the population need to re-learn how to interact with others. One way to drive guests through restaurant or bar doors is promoting the role they play in socializing. Hospitality businesses facilitate social interaction—it’s one of the industry’s greatest strengths. Equally, restaurants and bars fill people’s joy deficits.

Operators, says Harris, need to consider:

every way they can offer an experience guests can’t have at home;
how they can capitalize on the daytime drinking experience;
how to extend the guest experience—pre-visit and post-visit;
how to attract older guests to their venues;
leveraging patio spaces; and
focusing on messaging that promotes escapism and excitement.

Another interesting consideration concerns table distances. Every operator needs to weigh square feet per guest and distancing tables. Social distance will likely remain important to guests for at least a little while post-pandemic.

Bonus

Ferrell answered a question I asked about Las Vegas specifically. Dayclubs, which largely focus on elevating pool parties, are an integral part of Vegas hospitality.

So, how can they signal their commitment to health and safety as relates to infections?

Ferrell’s answer is that evidence appears to indicate that pools are Covid-19 infection spreaders. Therefore, dayclub operators should focus more on the crowd control aspect of health and safety. Additionally, messaging should focus on indulgence.

After all, says Ferrell, not much is more indulgent than saying, “I’m going to take the day for myself and go to a daylife venue.”

Image: Nick Hillier on Unsplash

March 15, 2021by David Klemt David Klemt No Comments

SevenRooms Reveals Third Party Impact

SevenRooms Reveals Third Party Delivery Impact

by David Klemt

New findings from SevenRooms, the powerful reservation and guest relationship platform, show the impact third-party delivery has on restaurants.

In partnership with YouGov, a respected internet-based market research and data analytics firm, SevenRooms finds that direct delivery saves operators thousands of dollars per month.

The overall finding of the “Data & Dollars: Revealing the Impact of Third-Party Marketplaces” report is startling. Operators are relying on a technology that in reality is harming them and their bottom line.

Cost of Convenience

Foodservice operators and workers, along with being hospitable in their mission to serve others, are adaptable.

The industry proves this time and time again. This is particularly true of the past 12 months.

Nimble operators pivot quickly, so it makes sense that so many restaurants, bars and other foodservice businesses embrace delivery, takeout and curbside pickup. Doing so is a direct and seemingly logical response to a major shift in consumer behavior to lockdowns, restrictions, and health concerns.

Most operators are well aware that state third-party delivery platforms take a 30-percent commission on average. However, the cost goes beyond devastatingly high fees: operators also lose control of the guest journey.

Real-world Example

SevenRooms illustrates the negative financial impact third-party delivery platforms with three examples: a high-end Italian restaurant in New York; a high-end steakhouse in Los Angeles; and a high-volume casual restaurant in California.

Let’s take a look at the last example.

Over a six-month period, the restaurant fulfills 19,000 combined orders. Delivery makes up 75 percent of these orders, takeout/pickup account for 25 percent. The average order is $33, and over the six-month period the total order volume is $617,500. Had the restaurant implemented direct delivery rather than third-party, they would have saved about $154,000.

Break those savings down and the restaurant would save approximately $25,600 per month that could go to:

PPE: 853 boxes of face masks or 196 boxes of gloves.
Takeout: 101,000 food containers.
Guest experience: 522 tanks of propane to keep guests warm on patios.

Using an average rent amount of $6,000-15,000 per month in Los Angeles, that’s also two to four months’ rent.

Guests Support Direct Delivery

The impact of third-party delivery on restaurants isn’t lost on consumers. Many view ordering food as more than just convenient, they see it as a way to support their favorite businesses.

Luckily, consumers are supportive of ordering delivery, takeout and pickup directly from restaurants.

Per SevenRooms:

Firstly, 37 percent of Americans are eager to do anything they can to help restaurants.
Nearly half, 48 percent, think it’s more economical to order directly from a restaurant.
28 percent who say they prefer ordering directly to third-party delivery feel that way after seeing their favorite restaurants suffer.
23 percent are informed and think third-party delivery platforms charge restaurants too much in fees.
16 percent feel that the harm done to restaurants by third-party delivery outweighs any benefits.

Leverage Direct Delivery Support

SevenRooms identifies several ways in their report that operators can succeed in getting consumers to order directly.

One way is the platforms’ own Direct Delivery solution. We speak to SevenRooms CEO Joel Montaniel about this solution on our Bar Hacks podcast.

Then, of course, there are an array of incentives consumers are willing to accept in exchange for direct delivery and ordering:

41 percent of Americans would order directly over ordering via third-party if a restaurant has its own app with features such as tracking and communication.
37 percent consider a complimentary item such as an appetizer, drink or dessert in addition to their order an appealing incentive.
32 percent like the idea of a personalized promotion applied to a future order or in-person visit.
28 percent indicate interest in a personalized promotion for their meal such as a discount code or comp item.
17 percent are fans of restaurants using ordering history to customize their menu and experience.

Read the entire report here. To learn more about SevenRooms, please click here. Connect with SevenRooms on Twitter, Facebook, LinkedIn and Instagram.

Image: cottonbro from Pexels

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

March 12, 2021by David Klemt David Klemt No Comments

Are You Ready for St. Patrick’s Day?

Are You Ready for St. Patrick’s Day?

by David Klemt

St. Patrick’s Day is just around the corner. Operators need to make sure they’re ready for in-person, delivery and takeout guests eager to celebrate.

An interesting element for this year’s holiday is that many people will be celebrating at home. That makes themed delivery, takeout and pickup packages important.

Over the past 12 months, consumers have grown to correlate drinking occasions with drinking at home. That shift in behavior can make it more challenging to succeed with holidays.

Of course, challenges also present opportunities. Working from and drinking at home has made weekday day-drinking more common. Operators can leverage new behaviors to offer in-person, delivery and takeout packages starting earlier for St. Patrick’s Day.

Such packages can include Irish Coffees for the morning or early lunch, Irish beers for lunch or dinner, Irish whiskey and beer packages for dinner and late-night…you get the idea. Classic and modern riffs on St. Patrick’s Day food mainstays are also a crucial element. The key is to get creative with inventory and offers, attracting a combination of in-person and off-premise consumers.

To give you a helping hand, we’ve rounded up some of our favorite Irish, Canadian and America whiskeys. We’re including the standards but also focusing on innovative and single malt expressions that boost guest spends and overall revenue.

Irish Whiskeys

One thing all operators know when it comes to St. Patrick’s Day: Irish whiskey and high-visibility brands must be represented.

After all, according to the Spirits Business, Irish whiskey generated well over $1 billion for distillers last year in the United States alone.

Jameson, Bushmills, Tullamore DEW, Kilbeggan and Redbreast shine on St. Patrick’s Day. Proper No. 12 is just a few years old but is on its way to becoming a St. Patrick’s standard.

In markets that can bear it, premiumization can help generate more revenue during this year’s holiday.

There’s nothing wrong with OG Jameson but consider premiumization with Jameson Black Barrel or 18 Years, which is finished in first-fill barrels.

When it comes to Bushmills, the original expression is great. Rare Cask 01, however, is the distillery’s Cognac cask premium dram.

For the adventurous guest, Cider Cask Finish, XO Caribbean Rum Cask Finish, and Old Bonded Warehouse Release from Tullamore DEW will get their attention.

Operators who feature Kilbeggan would do well to consider premiumization in the forms of Single Pot Still and Small Batch Rye.

Redbreast 12 Cask Strength and Redbreast Lustau are undeniable elevations of traditional Irish whiskey.

Canadian Single Malts

When people hear or think about St. Patrick’s Day, they tend to immediately leap to Irish whiskey. However, this holiday can be a time to highlight whiskeys from other countries.

Central City crafts Lohin McKinnon Single Malt with “pure British Columbia” water, per their website. The distiller recommends adding a splash cold, filtered water, a tip you can share with your guests.

Another Central City single malt takes Canadian in an interesting direction. Lohin McKinnon Tequila Barrel Finished instills single malt with unique flavors.

Eau De Claire boasts the distinction of being Alberta’s first craft distillery and first single malt whisky producers. The distillery uses only Alberta barley and rye to craft their liquid.

American Single Malts

There are a number of superlative American single malt whiskeys to consider promoting on St. Patrick’s Day.

Westland produces American single malt in Seattle, Washington. The distillery’s Outpost Range—Garryana, Colere, and Solum—celebrates American tradition, innovation and Pacific Northwest provenance.

Westward aims to craft and bottle the spirit of the American Northwest. Westward Pinot Noir Cask and Stout Cask elevate the distillery’s American single malts.

Those searching for a Rocky Mountain single malt need look no further than Stranahan’s. Each of their expressions is thoughtfully crafted, so it can be hard to choose just one. However, Blue Peak is interesting because it undergoes high-altitude distillation and is also finished using the Solera Method.

Also hailing from Colorado is Deerhammer. The distillery’s American Single Malt mash bill can experience temperature swings of well over 40 degrees in a single day.

Image: Stéphan Valentin on Unsplash

March 10, 2021by krghospitality krghospitality No Comments

House Passes $1.9B Covid Relief Bill, RRF

House Passes $1.9B Covid Relief Bill, RRF

by David Klemt

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

March 9, 2021by David Klemt David Klemt No Comments

CDC Updates Mask, Gathering Guidance

CDC Updates Mask, Gathering Guidance

by David Klemt

On the heels of some states rescinding mask mandates, the Centers for Disease Control updates safety guidelines.

The CDC’s guidance focuses on vaccinated people.

Key Changes

Per the CDC, people who are vaccinated can meet indoors with one another. These indoor meetings can take place without masks.

Of particular note, the CDC says these people can meet up indoors with one unvaccinated household as long as they’re at “low risk” of serious illness.

Equally interesting, the latest guidance claims that if a fully vaccinated person is exposed to someone with Covid-19, they don’t need to quarantine if they’re not showing symptoms.

Importantly, these guidelines address fully vaccinated people, not those awaiting their second shot.

Masks & Public Gatherings

The CDC still recommends masks, social distancing, avoiding crowds, and staying away from spaces with poor ventilation.

Those who are fully vaccinated should exercise those recommendations whenever they’re in public; gathering with people are unvaccinated from more than a single household; meeting with anyone with increased risk of severe illness or death should they be infected with Covid-19.

Vaccinated or not, the CDC recommends people avoid medium- or large-sized gatherings and domestic and international travel.

Workplaces should still follow CDC guidance for employees not working exclusively from home.

Important Details

The CDC says a person is “fully vaccinated” if they meet one of two criteria:

It has been two weeks since they’ve received their second dose of a two-dose Covid-19 vaccination (Moderna, Pfizer, for example).
It has been two weeks since they’ve received a single-dose vaccine (example: Johnson & Johnson).

Anyone who needs to receive a second shot isn’t fully vaccinated. The same holds true if it has been less than two weeks since being vaccinated.

Per the CDC webpage: Everyone, “even people who’ve had their vaccines—should continue taking basic prevention steps when recommended.”

Click here to review the CDC’s new guidance. Remember that health and safety protect yourself, your staff, your guests and your community.

Image: torstensimon from Pixabay

March 8, 2021by David Klemt David Klemt No Comments

Senate Boosts RRF to $28.6 Billion

Senate Boosts RRF to $28.6 Billion

by David Klemt

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

March 5, 2021by David Klemt David Klemt No Comments

Some Texas Operators Keep Masks in Place

Some Texas Operators Keep Masks in Place

by David Klemt

Texas is less than a week away from opening “100 percent” according to Governor Greg Abbott.

Three things in life are certain: death, taxes, and Texans aren’t fans of being told what to do.

Data shows an increase in coronavirus cases in Texas but that isn’t stopping Gov. Abbott from announcing all businesses can open at 100-percent capacity and the state’s mask mandate is no more as of March 10.

Political, Practical or Perilous?

Per Gov. Abbott, Texas have “mastered the daily habits to avoid getting Covid,” so it’s “now time to open Texas 100 percent.”

One of those habits, one would assume, is wearing a mask or other face covering to “avoid getting Covid,”

Doctors and health experts have been warning against complacency fueled by vaccines and cases dropping in some states. Another surge may be around the corner if people drop covid-19 safety measures in favor of a return to “normal” life.

Gov. Abbott’s announcement, therefore, calls into question his motivations: political, practical or perilous?

Some Operators Pushing Back

If we accept that one can’t tell a Texan what to do, we must apply that to restaurant and bar operators in the state.

Some Texas operators disagree with Gov. Abbott lifting of the mask mandate and are “100 percent” still requiring masks in their establishments post-March 10.

This message from Bobby Heugel, the operator behind Anvil Bar & Refuge, Tongue-Cut Sparrow, Better Luck Tomorrow and Squable in Houston, is straightforward. It’s also garnering plenty of support, with people thanking Heugel and pledging to spend their money at his businesses.

In response to a question by one commenter on the post, Heugel explains that the hospitality group is maintaining 50-percent capacity, socially distanced seating, and other CDC guidelines “until vaccination rates improve.”

Nickel City operations locations in Austin and Forth Worth. As the above statement makes clear, guests must wear masks inside their venues regardless of what Gov. Abbott says. Like Heugel’s, Nickel City’s statement is garnering support.

Whether the governor’s move proves wise or foolish will bear out in the coming weeks. However, the decision will likely once again put front-of-house workers at risk of hostile confrontations with guests who take wearing a mask as a personal attack on their liberty.

Still Struggling

To be fair, Gov. Abbott isn’t going it alone in terms of rolling back a mask mandate. Mississippi, Alabama, Iowa and Montana have made similar choices.

Going a further step toward fairness, a total of 16 states don’t have mask mandates in place. In fact, some never did. What has drawn attention is that Texas is the largest state to do away with its mask mandate (and the second largest state in the US in terms of population and area).

What grabbed my attention are the responses from well-known and respected operators who have chosen to still require masks and other Covid-19-related health and safety guidelines, along with the support they’re receiving from the public for doing so.

Multiple vaccines, a seemingly downward trend in infection rates, and the lifting of restrictions don’t magically solve operators’ problems—they’re struggling, as are their employees.

Follow this link to tell your representatives to pass the American Rescue Plan Act of 2021 and Restaurant Revitalization Fund now.

Image: Adam Nieścioruk on Unsplash