One year after the start of the pandemic, the desire for restaurants is coming true: state and local governments are allowing them to accommodate and serve customers indoors again. But it comes with its own challenges.
All states in the country now allow some level of indoor dining. Even highly restrictive states, including Michigan, Illinois and California, are reversing the meal bans that were imposed last year to try to contain an increase in coronavirus cases.
Some restaurant operators have said that the new uncertainties represent another frightening phase of the pandemic, and that they cannot predict that it will end soon. Those whose businesses survived last year said they are struggling to predict how many customers will return and how quickly. They also do not have a model for the amount of food to buy, the staff to retain and what changes related to the pandemic should be maintained.
Toast Inc. is planning an initial public offering that could value the restaurant software vendor at around $ 20 billion. (Associated Press)
Many customers remain hesitant. Fifty-three percent of Americans are comfortable with the prospect of eating at a restaurant now, while the rest said they need more time, according to consumer research firm CivicScience. About 37% of consumers planned to dine at a restaurant the following week, roughly equal to the levels measured during the fall, the survey in late February revealed.
Chicago-based EL Ideas restaurant reopened for indoor dining over Valentine’s Day weekend, and the hefty deal surprised co-owner Phillip Foss. Soon after, sales fell again. For Michelin starred EL, who now also has a barbecue to take away, unpredictability complicates menu planning, food orders and staff.
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“I feel like a yo-yo,” said Foss, whose personal savings are tied to the restaurant. “I don’t think I’m going to feel like my feet have been on solid ground for a year.”
For independent operators who run most restaurants in the United States, navigating a reopening is often a stressful process, the owners said. Smaller chains and independent restaurants typically have a smaller financial cushion compared to large chains, operators said. Small operators tend to have less influence on their supply contracts and are unable to spread their financial charges across multiple locations.
A sophisticated restaurant reopens after the 2010 Covid-19 blockade, with measures in place to protect staff and customers.
“It’s outside the window, the idea of projecting your sales,” said Lindsay Rae Burleson, co-owner of Two Headed Dog, a bar and restaurant in Houston.
To survive the limits of indoor dining, some owners have invested thousands of dollars in travel operations, outdoor patios and other means of sale. Owners are debating what to keep as they try to understand their customers’ mindsets.
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The Restaurant Group, owner of restaurants in New York, Washington, DC and North Carolina, is juggling a range of services, including limited indoor meals, patio service and take-out sales at 10 of the 11 restaurants still in operation. The owner, Jeremy Wladis, also manages two dozen exclusive brands online, started in the company’s kitchens to try to stay afloat during the pandemic.
“It’s chaos,” said Wladis, who said he tried to keep his team on the job even when the hours were unpredictable. “Every time you think you know something, it changes.”
LAKE BUENA VISTA, FL – JUNE 23: In this brochure photo provided by Walt Disney World Resort, new measures are in place to promote health and well-being at table service restaurants at Walt Disney World Resort on June 23. 2020 in Lake Buena Vista, Flor
Restaurateurs like Messrs. Wladis and Foss said they realize they are lucky to still have business to run. US restaurants and bars lost billions of dollars in sales during the pandemic because of dinner restrictions, as consumers spent more in supermarkets and ate at home. More than 110,000 restaurants and bars closed permanently or temporarily in the past year, according to the National Restaurant Association.
Seat network orders were 37% lower in the week ending February 21 compared to the corresponding week last year, according to industry research firm NPD Group.
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As of this week, 22 states are allowing restaurants to operate at full capacity, according to the Restaurant Association. San Francisco restored the limited number of indoor restaurants last week, for the first time since November. Texas, the second state with the second highest number of restaurants and bars in the country, after California, is removing all occupancy restrictions and allowing customers to waive mask requirements.
Some epidemiologists have said that restaurant capacity limits are being lifted too quickly. Federal authorities also warned against removing restrictions related to the coronavirus very quickly, as variants of the virus circulate and signs suggest that progress has stabilized. Last week, researchers at the Center for Disease Control and Prevention in the United States reported that counties that allowed meals at on-site restaurants had an increase in Covid-19 cases and deaths in the following weeks. Limiting meals in person and wearing masks can help reduce virus transmission and deaths, the researchers said.
Josh Phillips, co-owner of Espita, an elegant Mexican restaurant, delivers food to a customer at his restaurant in downtown Washington, Monday, February 15, 2021. Phillips opened an exclusive delivery brand called Ghostburger in August to keep Espita ‘ (AP)
While restrictions on indoor dining have benefited some fast food chains, many casual restaurant companies have suffered losses, despite increasing their own ready-to-eat options.
Some restaurant operators believe they can operate safely and said that many customers came back when they opened their doors.
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John Peyton, chief executive of Dine Brands Global Inc., DIN + 1.47%, said that Applebee’s parent company is confident in its ability to keep customers and workers safe, and that the return of the indoor meal is crucial. When a state increases its indoor dining capacity, the company’s sales improvement is almost immediate, he said.
“We have been planning to return to our restaurants for months,” said Peyton.
The reopenings do not always translate into a complete recovery for the restaurants.
In Florida, which allowed restaurants to return to full occupancy in September, several chain owners said sales had recovered. But restaurant reservations across the state remain about 20 percent lower than in the previous year, according to the online reservation website OpenTable, and restaurant operators said tourist centers like Orlando are slow.
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Mrs. Burleson, the owner of the bar in Houston, is maintaining 50% capacity to help customers and employees feel safe. She was not able to exceed that level and was not normally beating against him, as demand remains low and uneven, she said. Mrs. Burleson accepted occasional jobs to try to survive until the summer, when she expects sales to increase and remain so. All of her savings were used to keep her establishment alive, she said.
“If this ends, all I have is a dog,” said Burleson.