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Success of Toast’s public offering underscores resilience of the restaurant industry

CBD Expo USA September 2021 728 × 90

For the restaurant industry, the hope is that last week’s news on Wall Street is a harbinger of things to come for the industry as a whole. Toast the shares climbed 56% when they debuted on the New York Stock Exchange late last month after the restaurant technology provider valued its IPO above its expected range.

The business, whose products are used in more than 48,000 restaurants, raised about $ 870 million during its IPO, selling shares at $ 40 each. Toast had previously said he expected a public offering price of $ 34 to $ 36, after an initial range of $ 30 to $ 33. The stock closed at $ 62.51, bringing Toast’s market cap to over $ 31 billion. The three co-founders – Steve Fredette, Aman Narang and Jonathan Grimm are now billionaires and remain the top executives of the company,

The original idea for Toast came from all the hours Fredette, Narang, and Grimm spent hanging out in Boston’s bars, cafes and restaurants trying to figure out what to build. After experiencing a particularly long wait time for the check one day, they thought they had found a problem that could be solved by paying for the check from their smartphone – if only the technology existed.

They developed an app and launched it in 2012 with Firebrand Saints, a bar they frequented in Cambridge. The app gave customers a way to create a restaurant tab and link a credit card. “We often went there after work to buy a burger and a beer,” said Fredette. As they slowly grew in the area, they signed on to Dwelltime, a cafe in Cambridge. This is where Bennett was able to demonstrate the product. The transaction took place and the rest is now history.

Toast’s IPO comes amid a business resurgence for a company that was devastated at the start of the Covid-19 pandemic, when restaurants were forced to close and cities across the country closed. In April 2020, Toast cut its workforce by half, and CEO Chris Comparato wrote in a blog post that the previous month, “due to necessary social distancing and government-imposed closures, restaurant sales have decreased by 80% in most cities ”.

Singer September 2021 728 × 90

Sales rebounded quickly as restaurants turned to take-out and contactless orders and eventually opened up to out-door dining. Toast initially provided a one-month software fee credit to its customers and provided free access to its technology that enabled takeout, online ordering, and gift card purchases. In the third quarter, revenues were on the rise again and were even higher than a year earlier, before the pandemic.

Toast Platform

For 2020 as a whole, revenue increased 24% to $ 823.1 million. In the second quarter of this year, revenue nearly tripled to $ 424.7 million. More than 80% of that comes from what the company calls FinTech solutions consisting primarily of fees paid by customers for payment transactions. The rest comes from a combination of hardware, subscription services, and professional services.

Because it depends so much on revenue processing fees, most of it goes back to card networks and other payment processors. Toast’s gross margin, or the revenue remaining after taking into account cost of goods sold, was 21% in the second quarter, well below that of a typical software company. With increased selling and marketing costs as well as research and development expenses, Toast’s net loss reached $ 135.5 million in the second quarter, from $ 53.7 million a year earlier.

Founded in 2012 in Cambridge, Massachusetts, Toast began developing payment technology for restaurants and eventually developed a complete point of sale system. Before the pandemic, Toast thrived on helping restaurants combine their payment systems with things like inventory management and multi-location controls for restaurants with more than one location. Investors valued the company at $ 5 billion in February 2020. After the pandemic rebounded, the company proceeded with a secondary stock sale in November, allowing employees and former employees to sell part of their stock. acquired at a price that valued the company at $ 8. billion.

“When we look at the delta variant and Covid in general, we think the industry has been put to the test with the Covid pandemic,” Comparato said. “While the Delta may slow things down, this industry is recovering and we couldn’t be more excited to lead the charge as the industry recovers and restaurants start to thrive again.”


About Toast: Launched in 2013, Toast democratizes technology for restaurants of all sizes. Designed exclusively for restaurants and driven by a passion to drive their success, Toast connects employees, operations and customers on an easy-to-use platform so restaurateurs can stay ahead of the market. rapidly changing hotel industry. Tens of thousands of restaurants are partnering with Toast to increase revenue, streamline operations, retain employees and build enthusiastic fans. Toast was named among Fortune’s Best Tech Workplaces 2020, Forbes Fintech 50 2020, Forbes Cloud 100 2020, Ernst & Young’s Entrepreneur Of The Year® 2020 Listing – National Overall Winner, and the SXSW Interactive Innovation Final 2019. Learn more about www.toasttab.com.


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This woman quit the restaurant industry to create one of Toronto’s hottest bakeries

A Toronto bakery that started out as a secret has exploded to supply some Toronto cafes with items like popular bagel bombs.

Bread head is the brainchild of Lucy Kirby, a professional pastry chef who started out at Buca and Sud Forno in Toronto.

In just a year, her bakery has grown from a one-woman-run business at her parents’ house to a full-fledged business with multiple employees and wholesale partners, some of which are the hottest new cafes. popular in the city.

Kirby started cooking in 2012 at a restaurant business in Toronto, but “really hated the sibling culture and toxic masculinity.”

“I noticed that the only person who paid attention and respected me was the pastry chef,” Kirby told blogTO.

“From that point on, I had just fallen in love with the process, the patience for quality and the families I created in the kitchens I worked in.”

Sadly, battling a toxic work environment would prove to be a common thread in Kirby’s career: after working on Buca’s opening team in Yorkville, she moved to Vancouver to work at Hawksworth but “quickly regretted”.

Fill the bagel bomb.

“After practically working to the death there, I decided to leave and
jump, learn to slow down and make leaven to Nelson the seagull, to finally become pastry chef of Annalena, says Kirby.

“From there, I was asked to be the head baker and open their new concept of coffee for which I, again, worked in the soil for two years. That’s when I realized that I needed boundaries and a personal life to stay healthy, both mentally and physically. “

It was around this time that she accepted a job in Toronto and returned in February 2020.

toronto bread head

Make cruel people.

Three weeks later, she was “completely haunted by the business” and out of work, finding herself searching for something to do and being brought back to the one piece of peace in her life: baking.

“I found the making of the sourdough very therapeutic. During my stay at Nelson the Seagull I developed very bad anxiety, something I never thought I would feel in my life, so the repetitive motions made me feel bad. really helped calm me down in times of panic. I think attaching that in the brand name
Breadhead stays true to the way I cope, ”says Kirby.

“Making something like sourdough, you will never get the same bread twice, there are just too many factors to take into account. So when you see that initial oven pop up in the first 10 minutes of baking, you get that crazy dopamine shot that any baker could tell you, it can turn your entire day from bad to good. “

toronto bread head

Cruellers getting the frosted dip.

Unable to “stand still for more than a week,” she launched Breadhead in April.

“When that job failed, it was almost a blessing in disguise because it gave birth to Breadhead,” says Kirby.

“We wanted to create an army of bread heads, like the dead heads, you know, The Grateful Dead, and that name really resonated with me.”

The business moved from Kirby’s parents’ house to an apartment where she lived with two roommates and cooked small amounts using a miniature bakery setup in her happily large 120-square-foot room.

toronto bread head

Preparation of a Basque cheesecake.

She was able to deliver orders two to three days a week, and in February 2021 she was moving the bakery to the kitchen at White Squirrel Coffee Shop across from Trinity Bellwoods Park.

She now offers weekly pop-ups using a pre-order system on her website and has expanded her team to include bakery Lauren, driver Andrew, brand and graphic designer Ben and food stylist Sage.

toronto bread head

Checking baked goods.

His items are now sold at White Squirrel, Larry’s Folly, and Happy Coffee and Wine, all of which feature Breadhead bagel bombs and crullers.

“I originally wanted to make a croissant-based bakery, with sourdough bread, but sometimes life doesn’t give you the equipment or the electricity for these things, so I decided to go for a menu more brioche / bread, ”says Kirby.

toronto bread head

Classic donuts.

“We make donuts, and we alternate their toppings and icings according to the seasons. We make large format pies and pancakes, as well as Basque cheesecakes and
party cakes. “

toronto bread head

The popular bagel bomb.

Breadhead specializes in seasonal ingredients, obtaining them from suppliers like Muddy Crops and vendors at farmers’ markets.

toronto bread head

Cinnamon bread.

Their future plans include opening three days a week in December, and they will slow down online store pop-ups in November to prepare for it.

toronto bread head

The apple donut.

Ultimately, Kirby wants to keep it small and keep it sourdough.

“In a perfect world, I would have my own retail bakery, but I don’t want to stress myself out making it happen,” says Kirby.

toronto bread head

Kirby makes it all happen.

“Name it, I do. This is what a small business looks like. It’s a lot of work but I wouldn’t have it any other way. There is something about working for yourself that is so liberating, I wish. to anyone with that dream, he continues. I was broke when I started Breadhead. Anyone can start a business. “


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Oregon United States Sandwich Restaurant Franchise

Big Town Hero, a chain of sandwich restaurants with branches throughout the state of Oregon, is now offering prospective business owners franchise opportunities.

Big Town Hero, a chain of sandwich restaurants with branches throughout the state of Oregon, is now offering prospective business owners franchise opportunities.

The company is now looking for entrepreneurs in the Oregon and interstate region who want to join their healthy, community-driven fast food business as franchisees.

More details can be found at https://www.bigtownhero.com

As the summer season draws to a close and people across the country return to school and work, Big Town Hero knows that many people are looking for a change and the opportunity to pursue a new career.

The popular brand has made a name for itself in the Oregon fast food scene for its fresh, healthy sandwiches and its passion for local community efforts.

As such, with its appeal for new franchisees, Big Town Hero promises a thriving small business that follows an efficient, established and easy-to-execute business model.

Based on the latest market research, the company is confident that a sandwich shop chain located in any small to mid-sized town in Oregon, or beyond, will enjoy immediate market loyalty. .

Although the US fast food market is already saturated, the sandwich market is expected to grow by $ 11.5 billion by 2024. This reflects the fact that consumers are increasingly turning away from highly processed foods for higher prices. more nutritional options.

Big Town Hero’s franchise experts are available to provide in-depth, step-by-step training and consultation. New franchisees will learn to establish, manage and develop their restaurant upon joining the team.

Potential owners will also be part of the chain’s extensive purchasing supplier network, ensuring the most competitive prices.

To further support new franchisees, Big Town Hero is also offering full access to their iconic brand and visual merchandising.

Big Town Hero is a family-owned sandwich chain that takes pride in its fresh baked bread and the use of high quality ingredients.

Happy franchisee Andrew Pool of the Lebanon, Oregon chain said, “Owning a Big Town Hero is very rewarding. I work with my family every day, connect with every customer, serve a product I can stand up for, and make money doing it.

More information is available at https://www.bigtownhero.com


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Oregon United States Sandwich Restaurant Franchise – Food Business Opportunities Launch

Big Town Hero, a chain of sandwich restaurants with branches throughout the state of Oregon, is now offering prospective business owners franchise opportunities.

The company is now looking for entrepreneurs in the Oregon region and interstate who want to join their healthy, community-driven fast food business as franchisees.

More details can be found at https://www.bigtownhero.com

As the summer season draws to a close and people across the country return to school and work, Big Town Hero knows that many people are looking for a change and the opportunity to pursue a new career.

The popular brand has made a name for itself in the Oregon fast food scene for its fresh, healthy sandwiches and its passion for local community efforts.

As such, with its appeal for new franchisees, Big Town Hero promises a thriving small business that follows an efficient, established, and easy-to-execute business model.

Based on the latest market research, the company is confident that a sandwich shop chain located in any small or medium-sized town in Oregon, or beyond, will enjoy immediate loyalty from the customer. Marlet.

Although the US fast food market is already saturated, the sandwich market is expected to grow by $ 11.5 billion by 2024. This reflects the fact that consumers are increasingly turning away from highly processed foods for higher prices. more nutritional options.

Big Town Hero’s franchise experts are available to provide in-depth, step-by-step training and consultation. New franchisees will learn to establish, manage and develop their restaurant upon joining the team.

Potential owners will also be part of the chain’s extensive purchasing supplier network, ensuring the most competitive prices.

To further support new franchisees, Big Town Hero is also offering full access to their iconic brand and visual merchandising.

Big Town Hero is a family-owned sandwich chain that takes pride in its fresh baked bread and the use of high quality ingredients.

Happy franchisee Andrew Pool of the Lebanon, Oregon chain said, “Owning a Big Town Hero is very rewarding. I work with my family every day, connect with every customer, serve a product I can stand up for, and make money doing it.

More information is available at https://www.bigtownhero.com

Contact information:
Name: Kellen Eggert
E-mail: Send an email
Organization: Heroes of the big city
Address: 1005 Broadway Street, Vancouver, WA 98660, USA
Phone: + 1-360-718-2543
Website: https://bigtownhero.com/locations/vancouver-downtown/

Version number: 89047412

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COMTEX_394300953 / 2773 / 2021-09-30T05: 24: 52


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Key disruptions shaking the restaurant franchise space | Modern restaurant management

Like truly all businesses in the post-pandemic era, those that operate in restaurants, cafes, food trucks or any type of F&B franchise space are experiencing a wave of major changes, as is the food business. franchise as a whole. Accelerated and high adoption of technology; consumer demand for more efficient and on-demand service; and employee calls for greater flexibility are among the many linchpins in the industry that seemingly evolve day by day.

These and other changes and challenges each have their own implications within the franchise space, an industry projected open more than 26,000 locations and nearly 800,000 new jobs, employ nearly 8.3 million people and contribute $ 477 billion to U.S. GDP by year-end 2021.

“Amidst all the economic benefits and changes that are propelling the industry into new territories on several fronts, there are also many disruptive trends that, if not properly tailored, can become decisive factors for a business based on franchise. “, Warns Jimmy St. Louis, CEO of Franchise123.com.

According to St. Louis, here are some key disruptive trends reshaping the space.

Transparency takes the lead

Now more than ever, accurate data and transparency is no longer a demand, but rather has become a fundamental requirement. The franchise development industry has never experienced the collective, global transparency of franchise data that is currently underway. Franchise brokers, consultants and online franchise portals currently dominate the franchise development industry, but these outdated methods do not adequately meet the needs of modern investors.

Regardless of the investment, buyers expect transparency and comprehensive data to facilitate the verification process. Franchise buyers don’t just want to be sold, but rather invest in a business that will best ensure their financial, professional and personal prosperity.

A good franchise selection has the greatest impact on whether or not a franchisee is successful in any or all of these areas. Brokers and franchise portals not only limit the options available, but can also steer a potential buyer towards a brand that does not match their goals, objectives and sensibilities.

Industry portals are perishing

Specialty lead generation and business development portals have long been the link between franchisors seeking to engage with potential franchisees, and they are dying on the vine, and rightly so. While consumers may not know it, portals can do them a disservice. This is due to the fairly ubiquitous business model in which portals are paid for the leads created, which inherently creates a bias and weighting of interests towards the portals themselves versus potential buyers. This means that as a franchise investor, a portal earns you money whether or not you are genuinely interested in the brand you just clicked to verify.

Beyond this dynamic, there are a myriad of other issues with franchise portals. Brands turn to these portals to find qualified and interested buyers, but often feel like they are wasting their time, energy, and marketing dollars on unprepared leads. Those who are often not pre-qualified, vetted or properly oriented towards the applicable brands. In addition, the future franchisee is often prematurely bombarded with phone calls before they even understand the brand. In turn, they are also left on their own to organize their thoughts, conduct their own research, and make their own investment decision. Thus, franchisors complain of overpaying per lead and accounting for very limited results, which erodes business development budgets which are stressed and declining after COVID-19. These dollars are now allocated to other lead generation methods with a more demonstrable ROI impact.

Mass entry incidents

Also in the wake of COVID-19, people are more suspicious than ever. Many have lost their jobs and, with it, their sense of stability in a traditional career path. Suddenly, a 9 to 5 job and the promise of a salary every two weeks no longer seem reliable and, apart from the income, many people are also looking for more professional autonomy. The recent pandemic has accelerated the mass exodus from traditional careers and fueled the transition to self-employment, collaborative work and entrepreneurship. With this, franchise businesses have become a very popular option for people looking to pursue a more entrepreneurial path while absorbing less risk.

This wave of new buyers seek to capitalize on the ingrained support – and leverage the power of an already established brand – as they embark on the path of entrepreneurship. However, this eagerness and enthusiasm can lead to hasty or high pressure decisions and avoidable mistakes, with selecting the wrong franchise for their goals and personality being paramount among them.

Anti-weirdness legislation

Industry insiders say new legislation will soon be proposed that threatens the profitability of the franchise broker’s business model. Franchise brokers expect to receive a portion of the upfront fees that a new franchisee has paid to the brand up front, before the unit opens. For example, if a franchise investor pays $ 99,000 for the rights to open five locations, a franchise broker typically receives 50% or more of that commission, regardless of the number of locations opened by the franchise. However, the newly proposed legislation allows brokers to collect franchise fees as each franchise unit opens. This payment paradigm changes the entire selling process and cash flow for a broker. The fact that there are thousands of franchises sold each year that never open is compounding the concern.

Under the current system, brokers are paid for their efforts to successfully bring a new franchisee into the fold, whether or not a unit opens, an aftermarket situation beyond their control and sphere of influence. All of this dynamic can put both the broker and the franchisor in a more compromising position, strain professional relationships in the process, and potentially undermine a franchisee’s ability to get the right help from a broker when it comes to dealing with the issue. he wishes it. Simply put, this new legislation will align the interests of all parties, but the broker network surely won’t like it.

What does this mean for the future of the franchise?

“These disruptions in particular raise major concerns for all contingents: inadequate access to mission critical information, cost inefficiencies and competing interests among them,” noted St. Louis. “Franchisors have great difficulty finding qualified franchisees due to the misaligned interests of the portals. This given that brokers and the tidal wave of potential new franchise buyers themselves lack the means to source qualified information and effectively connect with the right franchisors. This sector illustrates the need for innovation and we expect to see several technological solutions emerge over the next few years. Transparent, self-guided sales processes have already started to dominate a multitude of industries, from buying homes on platforms like Zillow and cars on Carvana to buying insurance and more. The development of the franchise is long overdue for the change; namely to establish a more innovative method of sales which genuinely aligns the interests of franchisors and franchisees, to the drastic benefit of all parties.

Perhaps anything less than what St. Louis describes would be like buying a home without access to meaningful online data, resulting in totally inefficient and ill-informed decision-making that only exacerbates the risk. In today’s marketplace, and in the extremely hard-hitting franchise business in particular, this kind of outcome is utterly unnecessary, preventable, and will surely be viewed as totally unacceptable by industry experts. Today, one couldn’t even imagine buying a home without the proper online resources.

According to a report, assuming control of the COVID-19 pandemic is coming this year, FRANdata predicts that by the end of the year the franchise will have returned to near 2019 levels in most metrics: growth in businesses, employment, economic prospects and contribution to GDP. The report also mentions that total franchise production is expected to increase 16.4% and contribute $ 780 billion to the US economy. Much of this is based on archaic systems and processes riddled with loopholes. Just imagine that the economic recovery was the space for franchise development to operate more efficiently and fairly.


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COVID-19 pandemic exposes new challenges for the restaurant industry

When COVID-19 reached the United States and government restrictions were imposed – the closure of indoor meals in much of the country – millions of restaurant workers were left out of work. But now, as restaurants reopen and people go out to eat again, owners face a different challenge: their employees have not returned.

“What I remember most from those first few months and weeks is the word ‘heartbreak’,” said Sava Farah, owner of The Pulpo Group, which operates three restaurants in Ann Arbor, Michigan. “We had to lay off over 200 employees we called family.”

At the time, no one knew how long restaurants would be forced to supplant their income with take-out and alfresco dining. For many, that was never going to cut him.

The National Association of Restaurateurs estimates that in the first six months of the pandemic, nearly one in six restaurants – nearly 100,000 businesses – closed.

Industry exhausted

Things started to improve in December 2020, when the federal government authorized the first two COVID-19 vaccines. Soon after, cases started to decrease, restrictions began to be lifted, and restaurants were once again able to open their doors for indoor dining.

But even though customers returned, many workers did not.

“If you look at who works in restaurants in 2019 compared to today, there are about a million people who are missing,” said Micheline Maynard, Washington Post columnist and author of the soon-to-be-released “Satisfaction Guaranteed”. : How Zingerman’s Builds a Corner Grocery Store in a Global Food Community. “

The labor shortage has far-reaching effects on the industry. Many restaurants are having to reduce their hours, sometimes opening only for dinner service rather than all-day service. Some even cut whole days of service.

The reasons for the labor shortage have become political.

Republicans argue that the money offered under the enhanced unemployment programs passed by Congress has removed the incentive for people to return to work.

These improved unemployment benefits will not last forever, however. The Biden administration is ending enhanced federal unemployment benefits on Labor Day, and before that, more than half of U.S. states had already ended unemployment increases.

Democrats, meanwhile, argue that it’s not about paying people too much to stay at home, it’s about paying people too little to work.

“You get a really low salary,” Maynard said of many restaurant jobs. “Up to $ 5 less than minimum wage, and your tips are supposed to drive you up to minimum or above.”

But even restaurants that offer higher wages struggle to find workers.

An industry that needs a reset

Micheline Maynard and Sava Farah say the real problem lies with the industry itself.

The hospitality industry is already very stressful and physically taxing, and now the pandemic has brought new challenges, including an increased risk of exposure to COVID-19.

“The servers are responsible for reminding people to wear a mask,” Maynard said.

Those who return to work in the restaurant business also have to work harder due to understaffing. But because they lack that extra set of hands, the serve becomes slower and the tables don’t turn as quickly.

“And the person who hears the complaints about it is the waiter,” Maynard said. “It’s hard for the staff, it’s hard for the owners, they are stressed all the time [and] people are leaving. “

Sava Farah said long before the pandemic that the stress of the restaurant industry was already leading to a “culture of burnout” – a culture that was often accompanied by drug and alcohol use.

Now with the added problem of staff shortages, she thinks it’s time to reset the industry – even if that means some doors have to close.

“I don’t think that’s a very bad thing. I know that at least one of my restaurants is closed,” Farah said. “There is far too much competition in the market right now and this is forcing all the restaurants around to lower their prices. And when you lower your prices, you lower your rates of pay, you lower your profit margins, you lower the caliber of the restaurant. “

Micheline Maynard said it might also be time for lawmakers to get involved, especially if more federal money ends up going to restaurants.

“Basically Congress and then the Obama and Bush administrations said there would be conditions to be met,” Maynard said, recalling the auto bailouts during the Great Recession that ushered in industry reforms. “Restaurants need the same kind of scrutiny.”

Listen to this special ABC News Radio story “Help Wanted” for Labor Day below:


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COVID-19 pandemic exposes new challenges for the restaurant industry – 95.5 WSB

NEW YORK – (NEW YORK) – When COVID-19 reached the United States and government restrictions were imposed – the closure of indoor dining in much of the country – millions of restaurant workers took to are found unemployed. But now, as restaurants reopen and people go out to eat again, owners face a different challenge: their employees have not returned.

“What I remember most from those first few months and weeks is the word ‘heartbreak’,” said Sava Farah, owner of The Pulpo Group, which operates three restaurants in Ann Arbor, Michigan. “We had to lay off over 200 employees we called family.”

At the time, no one knew how long restaurants would be forced to supplant their income with take-out and alfresco dining. For many, that was never going to cut him.

The National Restaurant Association estimates that in the first six months of the pandemic, nearly one in six restaurants – nearly 100,000 businesses – closed.

Industry exhausted

Things started to improve in December 2020, when the federal government authorized the first two COVID-19 vaccines. Soon after, cases started to decrease, restrictions began to be lifted, and restaurants were once again able to open their doors for indoor dining.

But even though customers returned, many workers did not.

“If you look at who works in restaurants in 2019 compared to today, there are about a million people who are missing,” said Micheline Maynard, Washington Post columnist and author of the soon-to-be-released “Satisfaction Guaranteed”. : How Zingerman’s Builds a Corner Grocery Store in a Global Food Community. “

The labor shortage has far-reaching effects on the industry. Many restaurants are having to reduce their hours, sometimes opening only for dinner service rather than all-day service. Some even cut whole days of service.

The reasons for the labor shortage have become political.

Republicans argue that the money offered under the enhanced unemployment programs passed by Congress has removed the incentive for people to return to work.

These improved unemployment benefits will not last forever, however. The Biden administration is ending enhanced federal unemployment benefits on Labor Day, and before that, more than half of U.S. states had already ended unemployment increases.

Democrats, meanwhile, argue that it’s not about paying people too much to stay at home, it’s about paying people too little to work.

“You get a really low salary,” Maynard said of many restaurant jobs. “Up to $ 5 less than minimum wage, and your tips are supposed to drive you up to minimum or above.”

But even restaurants that offer higher wages struggle to find workers.

An industry that needs a reset

Micheline Maynard and Sava Farah say the real problem lies with the industry itself.

The hospitality industry is already very stressful and physically taxing, and now the pandemic has brought new challenges, including an increased risk of exposure to COVID-19.

“The servers are responsible for reminding people to wear a mask,” Maynard said.

Those who return to work in the restaurant business also have to work harder due to understaffing. But because they lack that extra set of hands, the serve becomes slower and the tables don’t turn as quickly.

“And the person who hears the complaints about it is the waiter,” Maynard said. “It’s hard for the staff, it’s hard for the owners, they are stressed all the time [and] people are leaving. “

Sava Farah said long before the pandemic that the stress of the restaurant industry was already leading to a “culture of burnout” – a culture that was often accompanied by drug and alcohol use.

Now with the added problem of staff shortages, she thinks it’s time to reset the industry – even if that means some doors have to close.

“I don’t think that’s a very bad thing. I know that at least one of my restaurants is closed,” Farah said. “There is far too much competition in the market right now and this is forcing all the restaurants around to lower their prices. And when you lower your prices, you lower your rates of pay, you lower your profit margins, you lower the caliber of the restaurant. “

Micheline Maynard said it might also be time for lawmakers to get involved, especially if more federal money ends up going to restaurants.

“Basically Congress and then the Obama and Bush administrations said there would be conditions to be met,” Maynard said, recalling the auto bailouts during the Great Recession that ushered in industry reforms. “Restaurants need the same kind of scrutiny.”


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National Restaurant Association issues update on the state of the 2021 mid-year restaurant industry

WASHINGTON, August 31, 2021 / PRNewswire / – Today, National Association of Restaurateurs released a mid-year supplement to the 2021 State of the Restaurant Industry Report, which illustrates the continued impact of the COVID-19 pandemic on the restaurant industry. The report provides an updated overview of key indicators and trends influencing the industry recovery in June /July 2021, including the current state of the economy, labor force, and food and beverage sales.

The main findings include:

  • Food and beverage sales in the restaurant and food service industry are expected to total $ 789 billion in 2021, up 19.7% compared to 2020.
  • Despite a steady trend of job creation in the first half of the year, catering establishments still account for nearly a million jobs, or 8%, below pre-pandemic employment levels and the restaurant and accommodation sector has one of the highest levels of vacancies. job postings from any industry.
  • From June 2021, 39 states and the District of Colombia had reopened to 100% its internal catering capacity; 11 states and Porto Rico are open to varying capacities ranging from 50% to 80%.
  • Six in 10 adults have changed their use of the restaurant due to the increase in the delta variant.

“Faced with one of the most devastating and disruptive events in our lives, the restaurant industry has made significant strides towards rebuilding in the first half of 2021,” said Tom Bené, President and CEO of the National Restaurant Association. “Consumer expectations for restaurant meals have changed and the industry continually adapts not only to meet, but also to exceed these expectations. Restaurant owners, along with their partners throughout the supply and distribution chain, remain focused on providing diners with an experience, against a backdrop of rising food and labor costs. work and challenges related to the pandemic. Given these factors, our outlook for the end of the year is cautiously optimistic. “

Labor and food costs remain the main challenges
July marked the seventh consecutive month of workforce growth, translating into a net increase of 1.3 million jobs in the first half of 2021. Despite these increases, foodservices remain nearly one million jobs, or 8% lower than pre-pandemic employment levels. Operators also continue to face higher input costs, with wholesale food prices rising at their fastest rate in seven years.

  • 75% of restaurateurs said recruiting employees was their biggest challenge in June 2021 – the highest level ever recorded.
  • The full-service segment lost 626,000 jobs, 11% below pre-pandemic employment levels; the limited services segment lost 175,000 jobs or 4% over the same period.
  • Menu prices have increased by almost 4% June 2021.

Technology, alfresco dining and takeout alcohol are here to stay
The pandemic has catalyzed many changes in the restaurant industry, including the rapid adoption by consumers of technology for online ordering, electronic payment and order pickup. Consumers want restaurants to continue to integrate technology and want to continue to eat al fresco. In 31 jurisdictions, thanks to approved legislation, consumers will be able to continue ordering alcoholic beverages with their take-out.

  • 52% of adults would like restaurants to integrate more technology to facilitate ordering and payment.
  • 84% of adults say they are in favor of restaurants setting up tables on sidewalks, parking lots or streets at all times.
  • A majority of adults in states that allow alcoholic beverages with takeout and delivery orders would like this to continue on a permanent basis.

Delta’s threat
In the first half of 2021, industry trends were positive, but there is still a long way to go. A survey by the National Restaurant Association, conducted August 13-15, found that the delta variant of COVID-19 threatens to reverse gains made in the first six months of the year.

  • 6 in 10 adults have changed their use of the restaurant due to the increase in the delta variant.
  • 19% of adults said they had completely stopped going out to eat.
  • 37% of adults said they ordered a delivery or take out instead of dining out.
  • 32% of adults said that if asked to wear a mask and / or show proof of vaccination to dine indoors again, they would be less likely to dine at a restaurant.

“The trends for the first half of the year are promising, but a lot of uncertainties remain regarding the delta variant, consumer confidence and ongoing workforce issues,” said Hudson riehle, senior vice president of research for the National Restaurant Association. “We expect pent-up restaurant demand to remain high over the coming months. However, in this state of flux, maintaining on-site meal availability with few capacity restrictions will be critical to sustaining overall sales momentum, especially for full-service operators. “

The National Restaurant Association will continue to monitor the effect of COVID-19 on the industry over the coming months and is planning a full report on the state of the restaurant industry in early 2022.

Click here to download the mid-year 2021 update on the state of the restaurant industry, sponsored by Sage Intacct.

About the National Association of Restaurateurs
Founded in 1919, the National Restaurant Association is the premier trade association for the restaurant industry, comprising 1 million restaurant and food service outlets and a workforce of 15.6 million employees. We represent the industry in Washington DC, and advocate for it. We sponsor the largest trade show in the industry (Salon of the national association of restaurateurs); Leading Food Safety Training and Certification Program (ServSafe); Unique Secondary Career Development Program (NRAEF ProStart). For more information visit Restaurant.org and find us on Twitter@WeRRestaurants, Facebook and Youtube.

SOURCE National Association of Restaurateurs

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New Mexico’s Restaurant Industry Launches Recruitment Campaign | Local News

Closed Mondays and Tuesdays.

And maybe Wednesday too.

Call them signs of the days of the pandemic – sure-fire indicators of a labor shortage in New Mexico’s restaurant industry.

The problem became so serious that the New Mexico Restaurant Association launched an Internet advertising campaign to attract both unemployed former employees and newcomers eager to land one.

The “Hungry for Success” campaign includes a 30-second promotional video showing people at work in various restaurant jobs.

“If you’re a successful New Mexican, the New Mexico Restaurant Association has plenty of table space for you,” the narrator says at the start of the spot.

The association’s advertising and accompanying flyer created on-the-job training opportunities, a “fast-paced” work environment, and the fact that one-third of all Americans reported that their first job was in a restaurant.

Carol Wight, executive director of the restaurant association, said the campaign’s goal was “to get people to watch the restaurant industry as they re-enter the workforce.”

She said that while people may have taken the time to rethink their career choices while they were unemployed, she hopes the campaign convinces those looking for work “restaurants are the place to be. go”.

She said that with so many restaurants in the state needing help, the chances of getting a job – even for those who have never worked in a restaurant or don’t have a college degree. secondary – are “better than 50-50”.

The campaign is timed to attract attention as September 4 approaches – the date on which federal unemployment benefits related to the pandemic end. Workers can get another weekly unemployment check after that, but many will be looking for work by mid-September.

According to statistics from the New Mexico Department of Workforce Solutions, as of mid-August, 5,800 unemployed workers were in the service and food preparation category. The peak unemployment for this industry was 23,500 in June 2020.

Wight said those workers were made redundant as businesses shut down during the pandemic.

“God bless them,” she said of these employees. “We closed three, four different times last year, and they were fired. They can be a little shy about coming back to work. “

Association members are planning a webinar meeting on Wednesday with Ricky Serna, head of Workforce Solutions, to talk about what the end of federal unemployment benefits may mean to fill positions in the restaurant industry and how it l Serna’s agency can help connect people looking for a job. .

The association also collects information about job openings at restaurants statewide and posts it on a job search site to encourage people to apply for those openings.

Working at the reception of the Inn of the Governors, Sam Gerberding saw with his own eyes the astonished looks on visitors’ faces when he told them that there aren’t many restaurants in Santa Fe open on Mondays. and Tuesdays.

The longtime Inn of the Governors employee and Greater Santa Fe Restaurant Association officer is well aware of staff shortages affecting restaurant operations in the city and elsewhere. He said when he explains the challenge to visitors – most of whom have heard of similar issues in other parts of the country – they understand it.

“They say, ‘Oh, that makes sense,'” Gerberding said in a telephone interview on Monday.

He said he can usually help them find one of the few restaurants that stay open on Monday or Tuesday.

Gerberding said restaurant employers need to make sure they don’t overload their current employees.

“We certainly pay a lot of overtime; we have a lot of employees who work very, very hard, ”he said. “It’s a big risk. Overtime money is real – a big sum that, if I could avoid it, I would prefer. And seeing my staff feeling exhausted is difficult.

He said it would be interesting to see how the association’s efforts to attract employees play out as coronavirus infections continue to persist, if not increase, statewide. This uncertainty could result in less travel, less business and less need for as many employees, especially as the tourist season begins to decline.

“We’re back in a state of ‘I don’t know what to do’,” he said.

Molly Ryckman, vice president of sales and marketing for Heritage Hotels & Resorts, said there were about 250 positions available at the 13 New Mexico companies in her organization.

She said she supported the association’s efforts to hire more people.

“We are in a crisis everywhere,” she said. “All of our restaurants have been affected by limited staff and the lack of people returning to work. “

Gerberding, who has worked at the Inn of the Governors for 17 years and in the restaurant industry for 25 years, said opportunities for success and advancement abound for those willing to give it a try.

“It’s not an easy job,” he says. “It’s not. It’s a very rewarding job. If you approach it from a place of service and look at the positive that you would get from that effort, this is a great opportunity.


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Financial security of the restaurant industry in danger of being destroyed by the Delta variant

WASHINGTON, August 24, 2021 / PRNewswire / – Today, the National Restaurant Association and its state restaurant association partners sent a letter to congressional leaders, sharing the results of a new survey on consumer confidence and urging a rapid replenishment of the Restaurant Revitalization Fund (FRR).

The survey found that a majority of consumers have already changed their restaurant behavior, which is starting to put a lot of pressure on the restaurant industry. This faltering consumer confidence comes on top of food and labor costs rising at their fastest pace in several years, lingering domestic capacity limits in 11 states, and crushing long-term debt. run from countless restaurant owners.

More specifically, the investigation revealed:

  • 6 in 10 adults have changed their use of the restaurant due to the increase in the delta variant.
  • 19% of adults have stopped going out to restaurants,
  • 9% canceled their existing plans to eat out in recent weeks.
  • 37% ordered takeout or delivery instead of going out to a restaurant,
  • 19% chose to sit outside rather than inside when going out to a restaurant.

“For an industry that needs a full house every night to make a profit, this is a dangerous trend,” said Sean kennedy, Executive Vice President of Public Affairs for the National Restaurant Association. “These changes indicate a decline in consumer confidence, which will make it more difficult for most restaurateurs to maintain their fragile financial stability.”

The letter urges Congress to complete the RRF’s mission and provide sufficient funds to replenish the program and provide relief for still pending applications.

“The rise of coronavirus variants like the Delta threatens to push these restaurants to close their doors for good,” Kennedy added. The RRF has proven effective in all states, saving the restaurants, workers, and vendors who depend on their businesses. The small gains our industry has made in financial security risk being wiped out, dashing the hopes of communities, entrepreneurs and consumers nationwide. “

177,000 RRF requests totaling $ 43.6 billion in grants are still pending.

While the first half of 2021 has shown positive gains for the industry, there is still a long way to go, especially for full-service restaurants facing the greater threat of new government restrictions in response to the delta variant.

Read the full letter here.

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About the National Association of Restaurateurs
Founded in 1919, the National Restaurant Association is the premier trade association for the restaurant industry, comprising 1 million restaurant and food service outlets and a workforce of 15.6 million employees. We represent the industry in Washington DC, and advocate for it. We sponsor the largest trade show in the industry (Salon of the national association of restaurateurs); Leading Food Safety Training and Certification Program (ServSafe); Unique Secondary Career Development Program (NRAEF ProStart). For more information visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and Youtube.

Contact: Vanessa sink
Director of Media Relations
[email protected]

SOURCE National Association of Restaurateurs

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