By Dr. Sheri Hernandez
Program Director, Hospitality Management
Since March, many industries have been struggling to survive, and the restaurant industry in particular has been hit especially hard. Lockdowns and occupancy restrictions, sometimes mandated with virtually no advance notice, have restaurant owners struggling to keep their doors open for takeout, let alone keep their employees working to pay their own bills and feed their children.
Restaurants and Pubs Are Community Centers, Not Just Places to Eat
Small restaurants and pubs are often the cornerstone and gathering place for communities across the country. The National Restaurant Association’s (NRA) latest research has found that 17% of restaurants have been forced to close either for the long term or permanently. This is more than 110,000 restaurants in the U.S., and the majority of them were long-established restaurants that were open for more than 16 years.
Those restaurants that have managed to stay open have resorted to expanding their takeout offerings and relying on their loyal customers to help support them, even when those in their own community may be struggling with job losses and health issues. Take-out alone does not sustain a restaurant designed for full-service and turning tables in the dining room.
In that same study by the NRA, 87% of full-service restaurants have reported a 35% drop in sales revenue. Those people who know the slim margins that restaurants operate on know that the drop in revenue will not sustain restaurants, which average a 5-6% profit margin on their menu offerings. On top of the drop in revenue, the restaurant still needs to pay their kitchen staff to keep up with takeout and limited in-person dining service, resulting in labor costs that have not decreased as a percentage of sales.
Restaurateurs will have to think long and hard when they consider their New Year’s Resolutions. There are restaurants that have become creative and optimistic as they look ahead. With the vaccine being distributed and the hope for some relief and return to gathering hopefully on the horizon, there are some concepts that restaurant owners may want to think about as they make up their 2021 resolutions.
Maintaining Cleanliness Will Be Key
The pandemic, of course, has made more people aware of the importance of hand washing, regularly cleaning surfaces and staying away from others when you are sick. More people are noticing when others do not take these precautions. These are simple practices that should have always been in place, pandemic or no pandemic, especially in a restaurant or food service setting.
In fact, some states require restaurants to certify they are adhering to specific cleanliness guidelines or certifications. Restaurants may want to take some time to consider their ventilation system and upgrade it to a system that cleans the air of airborne pathogens and then tell people about it. Clear, pathogen-free air will matter to many people for a long time.
Be Creative with Social Distancing and Al Fresco Dining
Outdoor dining will likely continue to remain popular as shutdowns are lifted and occupancy restrictions are relaxed. There will still be people who remain cautious about mingling with strangers, but they might be ready to get back to dining in restaurants, albeit outdoors. But for some, does dining on a picnic table or a metal patio set in 30-degree weather really sound inviting?
Some restaurants have gotten creative, both with outdoor dining and with obtaining funding for their innovative ideas. One critically acclaimed fine dining establishment, Bolete, obtained sponsors and built a “winter village” of heated sheds that they refer to as bungalows.
In these bungalows, they set up a private fine dining experience for small groups of guests. They are able to serve multiple parties throughout a dinner shift, with appropriate sanitizing in between guest visits. As a result, their sales volume has benefited even when they are not permitted to serve anyone inside their restaurant.
In New York, a huge courtyard adjacent to a major food hall has been transformed with lights and heaters to allow diners to enjoy their takeout somewhere other than their apartments. This communal dining area allows for a more social experience and helps to support the local restaurant scene.
In cities across the country, restaurants are finding creative ways to keep their guests comfortable while being forced to have them dine outside in frigid temperatures:
- Restaurants in Boston, for instance, are creating heated patios decorated in a winter wonderland motif to help warm the hearts of their guests, as their hands cup a creative hot cocktail.
- In Philadelphia, venues are lighting up private greenhouses and insulated igloos and serving their drinks in thermoses to retain the heat.
- In frigid upstate New York, restaurants are getting creative with outdoor dining by offering their guests freshly laundered blankets (or BYO Blanket) and fire pits to take the chill out of the air as they sip cocktails to warm up from the inside out.
Not feeling particularly creative or lack the space to add firepits and insulated igloos? Restaurant supply companies are finding solutions for that, too. Consider a bar-height bistro table that doubles as a cozy heater or some propane heaters for your sidewalk tables.
If you want to extend your outdoor dining season beyond sandal season, it will require some modifications and creative thinking. You’ll also need proper marketing to make the thought of dining out in the snow seem cozy.
Go Beyond Just a Take-Out Menu
It is very likely that take-out will continue to be a very popular option for many consumers, even as restaurants begin to open back up. Many restaurants have adapted their menus after finding that some items simply do not travel well in take-out containers.
For instance, some eateries have switched to more of a cook yourself or finish at home option because let’s face it, nachos reheated in the microwave just don’t cut it. A better option may be a “nacho kit” where the chips and all the fixings are packed separately, with instructions on how to assemble, heat, and garnish.
Some restaurants have embraced the concept of restaurant at home and expanded their menu in order to offer family-size meals to go. Their customers can just open up their take-out or delivery order and serve a meal around the table.
As restaurants return to higher dining-in capacity, owners and managers will have to assess their production capabilities to determine whether they want to continue to offer special menu items for takeout only. Some restaurants employed their out-of-work servers as delivery drivers, trying to keep as much of their revenues in-house rather than paying for or charging their guests for delivery through a third party.
Speaking of restaurant at home, consider “branding” a popular item in your restaurant to increase sales through retail products. Maybe your chef has created a wing sauce that no bottled brand can touch, or maybe you get requests for “extra” house dressing with every salad you sell.
Retail sales at restaurants can go beyond t-shirts and souvenir pint glasses. Breweries that fill growlers (small, portable containers with lids) to go will attest to the fact that a loyal guest will want that piece of the restaurant at home.
Show Appreciation for Customer and Employee Loyalty
I refuse to embrace the term “the new normal.” “Normal” is always changing and evolving, especially in restaurants.
Twenty years ago, you never saw Buffalo wings or fried pickle chips on the appetizer menu; you had to choose between potato skins or mozzarella sticks. Gluten-free pasta or meatless burgers? Unheard of in the ‘80s! Restaurants have always evolved and adapted to changing times.
But the fact remains that restaurants are a way of life for many, many people. The reality is that many restaurants will not survive these extended shutdowns and reduced capacity. Some others, however, are opening even in the midst of this pandemic.
So many people have continued to do whatever they can to support their local establishments and see them through this devastating time. The reverse is true as well: restaurants are sponsoring food drives and donating part of their takeout and gift card sales to their employees.
When things start to open back up and people start feeling comfortable socializing, remember those loyal customers and employees who helped keep you going. Show your staff and your guests you value their loyalty and prioritize their safety through small gestures.
With survival comes appreciation. I believe we will eventually be back to socializing in restaurants and bars. Maybe not this winter, maybe not even this summer, but we will be back. Those restaurateurs who are able to pivot and adapt, and have their communities behind them will be back.
Cheers to 2021!
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