Home Blog Page 3

How remote working is changing the restaurant industry

Remote working has exploded during the pandemic, and it has had various effects on the economy.

The restaurant industry has been affected in a number of ways, including the increase in demand for digital orders and deliveries, which has also resulted in third-party applications such as DoorDash (NYSE: DASH) even more vital. At the same time, remote working has favored restaurant chains with drive-thru, a strong digital infrastructure, and those located close to where people live, as opposed to chains located in city centers or in destinations in the city. trip.

In this fool live Segment recorded on July 2, Fool.com contributors Jeremy Bowman and Jon Quast, and bureau chief Corinne Cardina discuss the many implications of the increase in remote working on the restaurant industry.

Corinne Cardine: Yeah, another one, I guess that would be a headwind for the restaurant business, is remote work. In many ways, people are going back to work. Maybe you see that the business lunch hour is picking up, but there are a lot of people working remotely who are here to stay. Many companies have completely pivoted. Jon, what can you tell us about the categories that are really going to be affected by the continuing remote working trend?

Jon Quest: Yes. One of the things I think we can take from Darden’s results. Darden Restaurants (NYSE: DRI), it’s Olive Garden, LongHorn Steakhouse. What’s the other fat guy? It escapes me at the moment, but anyway, they have a whole portfolio of restaurants that they operate. One of them is Capital Grille, and it’s in their gourmet category. When you look at where Capital Grille is, it’s in a lot of major cities and downtowns and those comparable sales are still very much down. It was the worst performing part of Darden’s business in 2020. When you think of when people use this restaurant, it’s often like a business lunch. You go to the office, you have lunch with colleagues in a place like this. It is still very difficult. Luckily for Darden, they’re not pure play on this subject, so it gets absorbed into their overall business results. A company that was public a few years ago called Del Frisco’s was more of a pure play. I imagine they are going through a very difficult time as remote work is. At least here in a hybrid fashion, it looks like some of us are going back to the office, but maybe not as much as before the pandemic.

Cardine: Yeah absolutely. It will be one to watch. I certainly don’t see this immediate rebound in the more refined type of meal. Let’s talk briefly about delivery. The pandemic has been a tailwind for delivery. Some delivery stocks are better than others. Big names DoorDash, Grubhub, Uber (NYSE: UBER) Eat, Postmates is, I believe, private, correct me if I’m wrong. Jeremy, are there among these most attractive delivery stocks today compared to traditional delivery stocks?

Jérémy Bowman: Sure. I think going into the pandemic I was pretty bearish in this whole area. I think the unit economy really looked pretty lousy in a lot of ways. They squeeze customers on one side, then restaurants too. Some cities have even put a cap on the commissions of delivery apps during the pandemic. I think I saw San Francisco even vote to make theirs permanent. But I think what has happened is that the pandemic has just transformed the industry. The delivery is not going away now. I think we know that. These companies have resulted in millions of people signing up to use these services over the past year. We got used to them too. Restaurants have also added the infrastructure and they are used to doing things that way. I think the big three here and Postmates, you mentioned. Uber actually acquired Postmates.

Cardine: OKAY.

Archer: Yes. There has been a lot of consolidation in the industry over the years, and Grubhub is acquired by Just eat take out (NASDAQ: GRUB), which is a European company. I think every business brings something different to the table. Grubhub was the first disruptor with the online ordering interface, but was later disrupted by Uber and DoorDash who had their own armies of drivers working for them. Next, DoorDash now has a majority market share in the industry, with around 57% as of the last check. I think they were so successful because they went out into the suburbs and had a lot of chain restaurants that you might not consider ready to deliver like. Cheesecake Factory, those laid back eating places, and I think they’re working more with the restaurant side to develop those sales. You think Uber has a reputation for being more aggressive and just grabbing market share, I think they may have lost restaurant customers that they would otherwise have. DoorDash has a broader idea of ​​simply being a delivery app for everything, whether it’s your order from Walgreens or your supermarket or something from a hardware store. I’m thinking about these companies right now, I like DoorDash the most. It’s the most interesting, and for me, it’s the most interesting to watch in space.

Cardine: Impressive. Let’s talk about the side you don’t think about with the delivery. Who makes these applications? Jeremy has some really interesting stock that is new to me and that we are going to talk about.

Archer: Yes. I was also going to talk about it a little later. Olo (NYSE: OLO), they are in a way the counterpart of the delivery applications facing the restaurant. They just had their IPO in March. Olo stands for online ordering. This is basically what they do for restaurants. They were founded in 2005, but their growth has really exploded during the pandemic and in recent years as online order delivery takes off. They work for restaurants. You think of Uber and DoorDash and all that. They really get the end customer to order through them, and then obviously they have to get food from restaurants, but they’re more in touch with the customer. Olo is also interesting. It is really a technological stock. They’re using the SaaS model, software as a service, which has been a great model for a lot of cloud actions we’ve seen recently. I think they may be a better option than DoorDash because restaurants want to work with them. Restaurants hire them directly, unlike tensions with DoorDashes and Uber Eats around the world. I think Olo might be a better place to watch.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

Source link

“Theater of Hygiene” and what the catering industry looks like in the future

“Hygiene theater” in progress; Credit: Reuters Photo

American restaurants have become sanitation barons over the past year, taking on the duty of constantly cleaning high-stress surfaces such as tables, menus, chairs, doorknobs and, of course, kitchen cabinets. bathroom. Small businesses, including those here in Rockland, have been mandated by local and state governments to go to war with latex gloves, bleach and disinfectant wipes, to decontaminate every square inch of countertop or floor to protect the safety of customers and employees. Unfortunately, this cleanliness comes at a cost. The price of personal protective equipment (PPE) alone has put financial pressure on small businesses, in addition to customer capacity mandates and the expense of maintaining take-out orders. But does this extra expense actually help anyone? The CDC has reported that the rate of surface transmission of COVID remains extremely low, calling into question some aspects of state-sanctioned sanitation. What do Rockland business owners think of the state’s seemingly futile hygiene guidelines and practices, and what does the future of small business look like after the impact of the pandemic?

“Based on the available epidemiological data and studies of environmental transmission factors,” the CDC concluded, “surface transmission is not the primary route through which SARS-CoV-2 is spread, and the risk is considered low. This credible information has led business owners, health bloggers, journalists and even doctors to call excessive surface sanitation a “theater of hygiene.” This straightforward term refers to the exercise of taking sanitary measures that aim to give an illusion of safety while doing little to reduce any risk. Psychologically, many can feel immune to illness when they witness a facility’s efforts to reduce pathogens, especially during the height of the COVID pandemic. More will support their local businesses and dine at their favorite restaurants, under the guise of a sterilized environment. Nonetheless, this inefficient practice can actually be detrimental to businesses as they find it difficult to pay other expenses when they have to cover the cost of PPE equipment, largely on their own.

In fact, not only is the “hygienic theater” a financial barrier for businesses, but can also be a health hazard. “At the same time, there have been reports of an increase in poisoning and injuries due to the unsafe use of cleaners and disinfectants since the start of the COVID-19 pandemic, ”said Rockland County Health Commissioner Dr. Patricia Schnabel Ruppert. “Therefore, this intense (and potentially expensive) practice is probably unnecessary in most settings such as the home or when using public tables and benches.”

Nicholas Lambos, the manager of AquaTerra Grille in Pearl River, has had to adapt quickly to comply with state COVID-19 regulations to operate his restaurant. State-mandated health protocols enforced at restaurants like AquaTerra Grille included limited capacity, socially distanced tables, staff required to wear masks at all times, guests required to wear masks whenever they needed. ‘they rose from their seats, and the persistent cleaning and disinfection of all surfaces and utensils. Was it fair and reasonable for state health services to apply such guidelines? “To some extent, yes,” Lambos said. “However, I think there was no need to impose social distancing for outdoor dining,” he continued. This app was designed with the assumption that it was a health threat to have people within six feet of each other outside without face coverings. “Mandatory security protocols haven’t been good for my business,” Lambos said. “I was forced to operate with limited capacity and lost all of my catering events, which is a big part of my business. As evidenced by stories such as Lambos’s, the procedures required were not entirely favorable to businesses that were already struggling during the pandemic. Substantial portions of the restaurant industry depend on income from catering events which, in large part, have been closed.

The AquaTerra Grille outdoor seating area in Pearl River, where manager Nicholas Lambos had to make adjustments based on health guidelines from the New York State Department of Health. Photo credit: Table of the valley

“The practices were expensive to maintain,” Lambos noted. “The cost of PPE equipment like gloves and cleaning chemicals has increased throughout the pandemic. The hygiene theater can take limited resources for more critical needs. New York City announced more than $ 100 million last year on new cleaning and disinfectant practices, and here in Rockland County, companies were to pledge “health and safety.” Security”. In particular, companies with limited funds are struggling to afford PPE equipment that doesn’t have much use, in light of CDC research. While businesses like Aqua Terra have been luckier than most, others have been shut down altogether. A March 2021 report by New York State Comptroller Thomas DiNapoli cited Census Bureau data revealing that 78% of companies with fewer than 500 employees are still suffering the negative effects of the pandemic a year later.

A Restaurant Association investigation found that despite increased capacity and increased demand for off-site delivery and consumption during COVID, the majority of New York City restaurants were unable to recoup more than 30% of their revenue. lost due to the pandemic and the government. restrictions imposed, according to a Lohud report from March 2021.

“The support of our local community is what kept us going through the pandemic,” Lambos said. “Our ‘regulars’ ordered take out every week and generously tipped our team members.” Community support is crucial for small businesses when state government often fails to take into account the specific needs of specific businesses. Flexibility and innovation were also essential to determine the success of a business. “We have operated with a very small team for most of the pandemic,” Lambos said. “We’ve added more team members over time, but we’ve learned to work more efficiently with fewer people. Restaurants like AquaTerra Grille had no choice but to obey state orders or face the possibility of being closed. In adapting to the guidelines, Lambos had to make the quick decision to readjust the availability of its employees.

Despite these frustrations, Lambos of course supports common sense sanitation and strives to keep his restaurant pristine. “Maintaining cleanliness was a priority for us even before the pandemic,” Lambos said. By cleaning the surfaces, it is very likely that we can destroy germ bacteria and prevent possible diseases. “In some settings (ie healthcare settings) these practices remain important,” said Dr Ruppert. However, state governments must “listen to the science” and accept that COVID, an airborne contagion, is unlikely to be transferred from a counter. It is illogical to require excessive disinfection of such surfaces. Encouraging mask wear, reasonable social distancing and moving events outside is the optimal approach, according to Emanuel Goldman, professor of microbiology at Rutgers New Jersey Medical School.

In June, Governor Andrew Cuomo announced that fully vaccinated New Yorkers would not have to wear face covers in most settings. Unvaccinated people, however, are still responsible for continuing to wear a mask, according to federal guidelines from the CDC. “We will not require our guests to wear masks, but they are more than welcome if they wish,” Lambos said. Many companies can move forward with the principle of personal health freedom, after more than 70% of COVID restrictions are lifted in New York State.

Going forward, companies must be prepared to adapt to unfamiliar challenges by establishing methods for success in the industry. The AquaTerra Grille Lambos had their own idea. “Due to the popularity of takeout during the pandemic, I started a concept of ‘ghost food’ out of AquaTerra called Pita Greek. This is a great option for me as it is a way for me to expand my audience and provide my clientele with another dining option in the same kitchen. This has been a huge success for us and we are planning to open a brick and mortar location soon.

Sadly, not all businesses may have had the financial resources to create meaningful options for consumers during COVID. This is where the money spent on PPE could have been reallocated to the personal decisions of business owners.

COVID has awakened America’s sense of mass anxiety and led us to adopt pseudo-security measures, a pattern that matches our response to the rise of terrorism. leads to an intense sanitation of surfaces. These practices can make us feel secure, but do not eliminate any real risk. If we want to show care and respect for others, we can wear masks and social distancing and patronize our local business, if that is comfortable. Awareness is vital and we need to understand the reality of our sanitation efforts. The obsession with contaminated surfaces can distract us from effective ways to fight COVID.

The fate of businesses is in the hands of the local government. If an establishment chooses to clean its surfaces, then it has its own right. However, the health ministry should reconsider its misguided disinfection mandates for companies that cannot afford it and can benefit from disbursing their funds at their own discretion.

Source link

Another column on the restaurant industry


I attended a happy hour hosted by one of my favorite restaurants, Butcher’s shop. It was a “thank you” for Chef’s Brigade and it was awfully nice.

I have had the opportunity to speak to a number of restaurateurs who have participated in the Mass Food Initiative as well as some of their employees. I had the opportunity to spend time with some of the people who made the program run smoothly: Darnell Head and Jessica Lerouge from Revolution Foods; Leah Sarris, April Boudreaux and Trey Pressner of NOCHI; and our organization, co-founder Troy Gilbert and member of the board of directors and essential human Melanie Talia of the New Orleans Police and Justice Foundation.

We couldn’t have done what we did without any of these people, but at the end of the day we couldn’t have done anything without the people who work in the back of the house. It’s not the people who get the attention, but they are the ones who do the heavy lifting.

I remember when I started writing about restaurants almost two decades ago. I was struck by the chefs I interviewed. I looked at them like rock stars and for a while they were – maybe they still are – but the scales fell from my eyes at this point and I can’t think of a chef that I know who would oppose my reconfigured sense of place.

Because chefs are ultimately people who run a kitchen. Some of them are cooking and some are just stepping up, but all of them have to worry about the economics of the restaurant industry and dollars and cents aren’t that good right now.

Restaurant owners are taking a huge risk by opening a restaurant and they have to hire people to make their vision a reality. I have yet to meet a restaurateur who does not want to pay their employees more than they can. But they can only pay what their income allows and sometimes it is not a living wage.

The problem is, in this country, we don’t pay enough for our food.

I don’t mean to say that we pay too little in restaurants – or not just that we pay too little in restaurants, because for most restaurants we don’t pay enough.

The truth is we pay too little for all of our food. We don’t pay enough for produce, meat, poultry, seafood, or whatever. We’ve been spoiled to the point that we take abundance for granted, but the truth is, our cheap food comes at a cost. The big food companies are shutting small farms out of the market, and the system is in place to let them do just that. When the system is rigged, it’s not a “free market”, is it?

Our country was once a place where the majority of citizens lived on a farm. We will never go back for many reasons, but even 20 years ago there were thousands more family farms than today. We have decided as a society that we value cheap food more than family farms, and it is very difficult to argue that this is not a valid decision on a purely economic basis.

But it trickles. The increased efficiency of agriculture due to mechanization and the vast scale of operations means that fewer and fewer real humans are involved in the production of the food we eat. It also affects the restaurant industry.

Upscale restaurants that serve you chicken breasts from local farms charge you a fair price for it and hopefully pay their employees accordingly. These upscale restaurants are the exception. Most restaurants don’t have the resources or the access to farmers to source ingredients in this way and most restaurants can’t charge the kind of money they would need to do it in the first place.

All this does not even address the issue of “fast food” restaurants or “fast casual” restaurants. These chains can buy their ingredients at an even lower cost and therefore can charge less. If your goal is to buy calories at the lowest cost, you would eat at a fast food restaurant every day. They can provide you with calories at a lower cost than you could on your own, taking into account the cost of storing your ingredients and the time and effort you put into cooking.

But if you’re like me, then you probably don’t want to, and you should stop eating so many figs. I suspect you love restaurants and you love the idea that when you dine out, you are supporting the people who cook and serve your food.

I don’t know what we can do to solve this problem other than trying to buy things from local farmers and advocate for a higher minimum wage. I’m not the most liberal guy in the neighborhood, but I’ve come to believe that if you have a law that says ‘this is the minimum you can earn’, that should be enough for you to actually make a living from it. . We can make exceptions when warranted, but what if I have to pay a dollar or two more when I dine to make sure the people who cook and serve my food can pay their rent? I agree and you can call me Leo Trotsky.

There are arguments against this position, and I can’t refute them all now or maybe never, but at least when it comes to catering workers, I can’t look a cook or a waiter in the eye. and tell them that they should be working for something less than they can live on.

I’ll pay a dollar or two more per meal at a fast food restaurant, or a few more dollars at a small independent establishment to ensure that the people who work there are fairly paid. I hope you agree, and I hope there is some kind of movement in that direction nationwide. Because the alternative is pretty grim, and I don’t like the grim unless it’s a fairy tale.

I know this is a very complicated problem and I don’t claim to have covered everything, but before you email me with an explanation of how the market will solve everything, ask yourself if you could pay $ 10. or even $ 20 more per month for your food?

Source link

The restaurant industry in metro Atlanta still struggling

Now that Atlanta residents are returning to restaurants, many metro residents are struggling to hire enough people to meet demand.

BUCKHEAD, Georgia – Since the start of the pandemic, the restaurant industry has experienced a series of challenges and the industry is still struggling.

Now that Atlanta residents are returning to restaurants, many metro residents are struggling to hire enough people to meet demand.

The owner of Botica in Buckhead says the heat is on the restaurant industry.

“We have to be more honest in everything we do. A better product all the time. Be creative,” said Chef Mimmo.

According to National Association of Restaurateurs, job vacancies are at an all time high in the industry, registering a record 1.2 million open positions.

RELATED: Why Are Restaurants Having Trouble Finding Employees?

Regardless of the thousands of restaurants looking for employees in Atlanta, Chef Mimmo said it was a small business.

“Finding people and getting people. It’s like you treat five people well, they’re going to get the word out, word of mouth, word of mouth,” he said.

At Botica they employ 70 people and Mimmo said they are still accepting applications.

RELATED: US Adds 850,000 Jobs As Economy Expands Earnings

Recent studies show that people are leaving the industry for higher paying jobs, with more flexibility or benefits, according to the National Restaurant Association.

Mimmo said restaurant owners need to be careful what workers tell them.

“The flexible schedule, the pay, of course, has to be there, but also the vibe,” he said.

Despite the difficulties some restaurants face, Mimmo said he was optimistic about the future of the industry.

“I think everything will be fine. Everyone needs a job, everyone wants to go out and eat!

Source link

Subway, an American fast food franchise, introduces the biggest menu change in its history

Subway expects to introduce itself to customers and convince them to try its sandwiches again after years of declining sales.

In a week’s time, Subway restaurants across the country will unveil an updated menu meant to expand the items further, however you look at it. The chain says the move is the biggest menu change in its history.

The redesign incorporates new recipes for the chain’s Italian and multigrain bread, as well as new toppings for the sandwiches.

The chain also effectively fine-tunes menu items. Subway’s bacon, for example, will currently be hickory-smoked, and its turkey and ham will be sliced ​​thinner. It also brings back items from the past like rotisserie chicken and roast beef.

To entice customers to try the new ingredients, many restaurants plan to forgo a million free sandwiches between 10 a.m. and 12 p.m. on July 13. The chain is also updating the look of its app and cooperating with DoorDash to allow customers to order delivery directly from the Subway app.

A few customers once considered Subway a reasonable and moderately healthy option – they could stack their sandwiches with their favorite blend of veg and protein without breaking the bank. But in recent years, competition in the fast-paced casual space has helped Subway stand out.

“We want to make a loud enough noise… to attract these people to give us another look,” said Subway CEO John Chidsey.

With the new menu, Subway is looking for these customers and hopes to satisfy its franchisees.

Bring back customers

According to foodservice research and consulting firm Technomic, sales at Subway’s U.S. branches have fallen in recent years. System-wide sales at Subway’s U.S. branches were $ 12.3 billion in 2013, which was its best year of the previous 15, and about $ 8.3 billion in 2020, according to the Technomic analysis.

Due to a request for comment on these figures, Trevor Haynes, President of Subway for North America, said in an emailed statement that “Subway is privately held and does not publicly disclose sales figures. “. He added that “for the first half of 2021, average sales are doing well compared to 2019, pre-pandemic levels.”

As Subway rose to prominence, it “owned” the personalization, said Robert Byrne, director of consumer and industry information at Technomic. However, the rise of fast-casual has made personalization the norm. Currently, customers can create their own burritos, salads, sandwiches or bowls, which is furious competition in the space. As more restaurants come up with personalized alternatives, “we want to continue to… dominate this space,” Chidsey said.

Subway’s research showed customers want more innovation, Chidsey noted.

For this reason, the organization decided to “focus on improving the quality of the basic ingredients, because with these basic ingredients you can make an almost endless number of sandwich combinations,” Chidsey said.

It’s tough on personalization. “Perceptions of health and what is healthy [have] evolved, ”Byrne said. “From an ingredient perspective, I know consumers would like to know a bit more about sourcing.”

Recently, questions were raised about Subway’s tuna – a lawsuit claimed that Subway’s tuna sandwich was not actually made with fish. The combination has since been revised to state that the tuna used by Subway is not 100% tuna and generally does not use skipjack or yellowfin tuna. Subway called the original first lawsuit “without merit” and said “the new claims are false”, adding that “the lawsuit constitutes a reckless and inappropriate attack on the Subway brand.”

Subway always serves the product with pleasure, claiming that “100% wild caught tuna remains a fan favorite among submarine enthusiasts”.

Franchisee tension

The refresh also has the conceivable benefit of satisfying franchise operators, some of whom are calling for changes.

One measure of the up-to-date prosperity is a “re-energized franchise community,” Chidsey said. “It’s important for us internally. Franchisees have also called for more menu innovations, he said.

Some Subway franchise operators have complained publicly about how the organization is treating them. In April, an anonymous group of “concerned franchisees” composed an open letter to Elisabeth DeLuca, co-owner of the chain. Subway’s dream “turned into a nightmare,” they said, writing that Subway had hurt their business by franchising new locations nearby or closing stores for minor infractions, in addition to other things. In a separate letter, they complained about the high franchise fees. Subway’s franchise fees are “competitive,” said Trevor Haynes, Subway president for North America, in an emailed statement.

“There are still a few people who are unhappy with the past,” Chidsey said, referring to the franchisee’s complaints. “But I think if you talk to the vast majority of our franchisees, they’ll say we’ve had a hell of a six month period,” he said, suggesting that the higher sales are encouraging for franchise operators. . “Things are improving quite dramatically.” He added that the chain is focused on developing sales rather than the quantity of Subway restaurants in the United States.

Aligning franchise operators with the corporate team is fundamental to the turnaround of the organization, noted Technomic’s Byrne. “I don’t think they can do anything until these two groups are on the same page.”

Source link

Crab shortage still causes major problems in the restaurant industry

DELMARVA – Places like Adam’s Taphouse and Grille have struggled with the recent crab shortage. They even went so far as to remove crab cakes from their menu. Other restaurants say they don’t even know when things will get better. “I mean, we’re getting run over everywhere,” says Peter Roskovich, owner of Adams Taphouse and Grille.

It’s summer and on the east coast many residents associate this time of year with crabbing season. Although many restaurants say they have been waiting for business to pick up, we are told that the current crab shortage is still causing them major problems. “Now restaurants are ordering more product than they need because they don’t know when the next shipment might arrive at their supplier, nor do they know when the next price might be,” says John. Scheckells from Evolution Brewery.

According to Scheckells at Evo, who has also worked in the crab industry for years, these shortages really boil down to product availability. He tells us with high demand and low supply of crab, wholesalers and restaurants just can’t keep up. “Most of the watermans we deal with on some of our properties just shrug their shoulders at this point and they don’t know what the situation is or what their future has in store for them,” says Scheckells.

Meanwhile, Roskovich made the difficult decision to remove an important item from their menu, their crab cakes. The owner tells us that with their major importers like Indonesia and Venezuela unable to source here in the US due to their own supply issues and labor shortages, things don’t seem just not improve. “I’ve never seen anything like it with crab meat, and all the supplies for 32 years, it’s never been like this.”

Both restaurants say they have three choices until things change, prices increase, smaller portions, or 86 menu items. “Now the supply chain is so broken that it could be years before we get back to normal,” says Roskovich. Scheckells adds: “I don’t know if there is really an end in sight.”

Now those in the restaurant industry say that while this has been an ongoing problem, they are just hoping to wait until the storm is over until things improve.

Restaurant owners tell us, however, they are grateful for being able to sell take-out alcohol, especially during times like these. We are also told that consumers should be aware of price fluctuations and be aware that many items other than crab are also in short supply. They ask you to call first, to check prices and availability.

Source link

$ 60 billion in additional funding could be the boost the restaurant industry needs

HANCOCK COUNTY, Mississippi (WLOX) – More money could be coming to independent restaurants.

In March, the American Rescue Plan Act was passed, which included $ 28.6 billion in grants for restaurants, food trucks and bars. Now the senators are working to reintroduce this law with more money, and this could be the solution to the problems of some restaurateurs.

“It would be really helpful if we could get a grant that wouldn’t have to be repaid,” said restaurant owner J’s Louis Fouquet III.

“We can’t afford to take another loan,” said Melvin Barnes, owner of Cuz’s Oyster Bar and Grill.

Both restaurant owners said they are feeling more impact from COVID-19 as they work to get back to normal. While staffing has been a problem, Fouquet and Barnes now agree that finances go beyond that.

“Food prices, ground meat, steaks, ribs, everything is going up,” Fouquet said.

This is one of the reasons why the Hancock County Chamber of Commerce encourages everyone to push Congress to pass the additional $ 60 billion in grants under the Restaurant Revitalization Fund, presented in part by Senator Roger Wicker.

“It’s an incredibly vulnerable industry,” said executive director Tish Williams. “The restaurant industry has had so many challenges because of the pandemic, so we ask all of our citizens to join us in asking for support for this legislation.”

Both Cuz’s Oyster Bar and Grill and J’s Restaurant have had to change or remove certain things from their menus due to supply shortages and higher prices.

“Payroll monitoring. Track the cost of food, the prices of food, ”Barnes said. “The availability of food is just amazing.”

“Mayonnaise,” Fouquet said. “You wouldn’t think of something as simple as mayonnaise, even that has increased, almost double. It’s crazy.”

Although loans have been offered through the Paycheque Protection Program, Fouquet said they helped him but put him further back.

“This money is all gone,” Fouquet said. “So while this SBA loan has helped, we have to pay it back starting next year. So it’s a financial concern for me so if we can get this grant I will do whatever they need me to do.

Barnes said taking care of his employees and everything is going well, the grant would be a boost to do so.

Copyright 2021 WLOX. All rights reserved.

Source link

Help Wanted: Labor Crisis Affects US Restaurant Industry

LOS ANGELES >> Sherry Villanueva’s Santa Barbara family of restaurants employed 350 people before the pandemic took hold and darkened dining rooms across California. Now, with the official reopening of the state economy, around 250 workers have returned to work.

Villanueva would hire 100 more if she could – but she can’t find people to take the openings.

“We are in the midst of a very serious labor shortage,” said Villanueva, owner and managing partner of Acme Hospitality, which operates eight restaurants in the popular seaside destination, although two remain closed. With sticks stretched out like a paper towel, employees “do two people ‘s work.”

California completely reopened its economy on June 15 and removed capacity limits at restaurants, retail stores and other businesses. People are eager to come back to sporting events and amusement parks and enjoy a restaurant meal.

But instead of full dining rooms, many restaurants are forced to reduce opening hours or leave tables open. Villanueva’s company offers cash bonuses to workers who recruit new employees.

The labor shortage is also affecting restaurants in the United States

The National Restaurant Association reported that the restaurant industry shed 2.5 million jobs in 2020. Federal data indicates nearly 1.4 million vacant positions in the restaurant and hospitality industry in April.

At Served Global Dining in Henderson, Nevada, a suburb of Las Vegas, chef-owner Matthew Meyer said he needed a dozen or more people to fill positions at all levels, including cooks. and bartenders.

Plans for a raw seafood bar, take-out kits, and a chef’s table to serve special tasting menus are on hold as it can’t find enough workers. Meanwhile, its labor costs have increased by a third as it has to offer more money to attract applicants. Even then, the last two he had scheduled for interviews never showed up.

“We are having extreme difficulties,” he said.

Sam Toia, CEO of the Illinois Restaurant Association, said he has started discussing with federal lawmakers the possibility of expanding work visa programs for the restaurant industry to open a new pipeline labor.

And without enough workers to fill shifts, restaurants are warning customers to expect longer-than-normal waits for their meals, Toia said.

The California Restaurant Association previously estimated that one-third of restaurants in the state would not survive the pandemic. For those who survived, the lack of jobs is a “crisis in its own right,” said Jot Condie, who heads the organization.

Democratic Governor Gavin Newsom likes to say California’s economy is booming. Indeed, employment figures released on Friday showed the state created more than 100,000 jobs in May, the fourth consecutive month of gains after 2.7 million jobs disappeared in the first few months of the pandemic.

But in the state’s battered restaurant industry, the return to normalcy is being slowed down by the struggle to find sufficient numbers of cooks, bartenders, waiters, and kitchen staff. Since May 2020, restaurants and hotels have created 420,400 jobs – the most of any industry – but the industry remains around 450,000 jobs below its pre-pandemic level.

In Los Angeles, Caroline Styne, owner and wine director of the Lucca group, turned down dozens of customers because she didn’t have the staff to serve them, leaving seats empty.

“If you can’t fill your seats… several times a night, the restaurant’s financial structure isn’t working,” Styne said.

“Hiring is a nightmare,” she added. “I have never been in such a situation.

The industry is notoriously volatile, and restaurant workers can be in transit – from students moving in and out of shifts if time permits, aspiring actors and musicians looking to supplement their income, kitchen workers leaving for work. higher wages elsewhere. Hours can be long, benefits scarce, and wages low, sometimes dependent on tips.

Styne, Villanueva and other industry experts see a set of factors conspiring to create the scarcity of job seekers.

Among them: California’s population fell by 182,000 last year as the pandemic ravaged the economy, scattering workers across the country as many businesses closed. Some workers are reluctant to return, either out of lingering fear of the virus or because of frayed nerves after struggling with intermittent shutdowns, home isolation and changing health regulations.

Extended federal unemployment benefits have provided a cushion for staying home – around 2 million people are still receiving checks. In other cases, there is a problem with childcare with closed schools or recess for the summer. And after a long hiatus from work to think about the future, others have embarked on a new career.

Restaurants and hotels have been the “zero point” of the labor shortage, but other sectors are struggling to fill jobs, including non-union construction and home health care, said Michael Bernick, former director of the California Employment Development Department and lawyer. with the Duane Morris law firm.

For struggling restaurants, a turning point may not come until late summer, when improved federal benefits end and schools reopen. Even then, wages might have to increase to attract workers.

On Saturday, Alec Nedelman was enjoying an early Father’s Day celebration with his family at one of Styne’s AOC restaurants in Los Angeles. The lawyer said he had just started returning to restaurants since the dining halls began to reopen and was also anxious to have them available for business meetings.

“It’s still a mixed feeling. You’re still a little cautious and worried, ”Nedelman said. But “I can’t wait to be able to be social again. “

Source link

U.S. restaurant industry projects $ 358 billion growth by 2027 – ResearchAndMarkets.com

DUBLIN – (COMMERCIAL THREAD)–The “Restaurants, Fast Food, Pizza Delivery, Takeout, and Home Industry (US): Analyzes, Full Financial References, Revenue Metrics and Forecast to 2027, NAIC 722513” Plunkett Research Ltd report has been added to ResearchAndMarkets.com offer.

Restaurants, Fast Food, Pizza Delivery, Takeout, and Home Industry (US): Analyzes, Full Financial References, Revenue Metrics and Forecast to 2027, NAIC 722513

Vital industry specific data including metrics, benchmarks, historical figures, growth rates and forecasts that will save countless hours of research.

Main conclusions

  • Restaurants, fast food, pizza delivery, take-out, and the family industry (US) will reach $ 358,234,411,637 million by 2027.

  • Restaurants, fast food, pizza delivery, take out and home industry including average EBITDA, operating ratios and sales per employee.

Main advantages for the customer

1) Comprehensive overview of an industry’s financial results, ratios, vital statistics and metrics in one package

2) Comprehensive benchmarking of the industry and its top companies

3) In-depth industry and company financial data

This report includes

1) Historical data

2) Revenue Forecast, Growth Rate and CAGR

3) Operating ratios

4) Comprehensive data to compare a company to its industry and specific leading companies

5) Benchmarking of this industry to all US industries

6) Detailed and historical financial profiles / operating ratios for up to ten large US-based companies

Main topics covered:


A. Main advantages for the customer:

  • Comprehensive overview of an industry’s financial results, ratios and vital metrics in one package (US data)

  • Comparative analysis of:

1. In-depth financial data of each of the leading companies in the sector

2. Multi-year financial averages for all companies in the sector

3. The financial ratios of this industry relative to all other industries.

  • Historical income

  • Company population

  • Number of employees over several years and sales per employee

  • Current and forecast revenue and CAGR to 2027

  • Profiles of leading companies in the industry, with multi-year financial histories

II. Industry description for this NAIC code

  • Types of business activities

III. Industry summary, current year (US data)

  • 2020 revenue and CAGR

  • Revenue forecast to 2027 with CAGR

  • Historical income

  • Historic CAGR

  • Top US Companies, by Revenue

  • Employment in industry, 2019 and history

IV. Number of jobs and establishments (US data)

  • Number of businesses and establishments, 2012-2019

  • Employees, 2012-2019, with growth rates

  • Average annual sales by company and establishment, 2012-2019

  • Annual sales per employee, 2012-2019

V. Financial data for this industry, United States, with revenue projections to 2027

A. Revenues, historical and projected

  • Historical Revenue and CAGR Growth Rate, 2012-2020

  • Projected revenue and CAGR growth rate, 2021-2027

B. Estimates and benchmarks of the average annual operating ratio for the current year

  • Items of income, expenses, profits and taxes as a percentage of total income for this industry

C. This industry compared to all industries, benchmarks for the current year

  • Comparison of the revenues of this industry to the total revenues of all industries

  • Comparison of EBITDA, profits and income taxes for this industry to the same items in total for all industries

D. Table of companies used in the creation of industry averages

  • Detailed alphabetical list of companies, with income, location, stock symbol and exchange

E. Industry results and benchmarks for publicly traded companies

  • Averages of the income statement, 2014-2019

  • All items of the income statement, including cost of sales, SGA expenses, R&D, salaries and wages and EBITDA, with ratios

  • Chart showing key expenses as a percentage of revenue

  • Balance sheet averages, 2014-2019

  • All items, including property, plant and equipment, accumulated depreciation, goodwill and long-term debt, including ratios

  • Averages of cash flows, 2013-2018

  • All cash items

VI. Best profiled and ranked companies

  • Detailed profiles, financial reports, rankings and executive lists for up to 10 of the largest US-based companies

A. Top ranked companies for key elements:

  • Approximate market capitalization

  • Employees

  • Income

  • Net revenue

  • 3-year revenue growth rate

  • 3-year revenue growth rate

  • Rate of return on assets

  • Rate of return on equity

  • Rate of return on invested capital

B. Benchmarking of the best companies in the sector, against each other and against their sector averages for all measures

  • Income statements, balance sheets and cash flow statements for each of the best companies compared to the overall industry average

C. Company Profiles (Descriptions of the best companies in the industry, including executive lists and multi-year financial results)

  • Contact details, executive lists

  • Company Description

  • Key financial data for 6 years

  • Brands and divisions

  • Best salaries

  • Corporate culture

  • Charts comparing income to net income

VII. Annex: Assumptions

  • U.S. GDP Growth and Forecast, 2016-2027

VIII. Description and sources of data

Companies mentioned

  • Burger King Worldwide Inc

  • Chick-fil-A Inc

  • Chipotle Mexican Grill Inc

  • Darden Restaurants Inc

  • Brands Inspirer Inc

  • McDonald’s Corporation

  • Pizza Hut SARL

  • Metro (Doctors Associates Inc)

  • Yum China Holdings Inc

  • Yum! Brands Inc

For more information on this report, visit https://www.researchandmarkets.com/r/t9tm3r

Source: Plunkett Research Ltd

Source link

Michigan Restaurant Industry Encourages Diners To “Look For The Sign When Dining” from ServSafe

A campaign that was first launched in July 2020 is being renewed across Michigan today as the state’s hospitality industry has finally been allowed full capacity in bars and restaurants now that all restrictions collection and face mask orders have been lifted.

The Michigan Restaurant & Lodging Association is renewing its partnership with ServSafe to meet new consumer expectations in the summer of 2021 and resuscitates the organization’s advertising campaign that encourages those who travel to town to “Look for the sign when you dine.”

The sign is the ServSafe Dining National Commitment Statement of companies that have signed the 2021 Safety Pledge.

After more than a year of pandemic precautions, consumers are ready to return to restaurants. To survive and thrive in the new economy, operators are finding ways to communicate to employees and guests that they continue to take health and safety seriously. Today, the Michigan Restaurant & Lodging Association (MRLA) and ServSafe announce an expanded partnership on the ServSafe Dining Commitment and the launch of a consumer advertising campaign highlighting how diners can “stay safe” by “looking for the sign. when they have dinner ”.


Your content continues below

Justin Winslow, President and CEO of the Michigan Restaurant & Lodging Association, said, “We have partnered with ServSafe and the National Restaurant Association on the ServSafe Dining Commitment to ensure Michigan restaurants have a a deliberate and credible way to show diners that they are offering safe meals. experiences, ”and adds,“ The foundation of the restaurant commitment is ServSafe training and certification, because when advanced food safety is a core restaurant value, consumers can have peace of mind and peace of mind. have great experiences, so that the restaurant community can thrive again. . “

The ServSafe Dining Commitment was first launched in July 2020 by the National Restaurant Association and ServSafe to showcase restaurants demonstrating their continued commitment to health and safety precautions. The program has evolved to accommodate changing business requirements, requiring that operations:

  • Have a certified ServSafe manager among the staff of each site …
  • Agree to follow the National Restaurant Association’s COVID-19 operating guidelines or company guidelines, local laws and guidelines …
  • Make a commitment to train employees as ServSafe Food Handlers and encourage them to take ServSafe’s free COVID-19 training …

In addition to the ServSafe Dining Commitment decals on display at participating restaurants, diners in the Detroit Metro will soon begin to see advertisements encouraging them to find participating local restaurants by going to http://servsafedining.org.

Sherman Brown, Executive Vice President, Training and Certification for the National Restaurant Association, says, “For 30 years, ServSafe has been at the forefront of preparing restaurant and restaurant workers to deliver safe dining experiences. to their customers, while ensuring their safety. “and adds,” We encourage operators and the entire restaurant and foodservice community to join us in welcoming diners into their dining rooms with the peace of mind that their restaurant is adhering to the pledge. ServSafe catering. “

Michigan Restaurant & Lodging Association (MRLA) is the recognized leader in Michigan’s hospitality industry, providing essential services to the restaurant and lodging community. Founded in 1921 as the Michigan Restaurant Association and now known as the MRLA, the Association represents more than 5,000 food and lodging establishments in Michigan. The industry plays a vital role in Michigan’s economy, employing more than 595,000 people and generating nearly $ 40 billion in annual sales.

Source link