To Our Valued Subscribers:

On behalf of everyone at American Recruiters, know that our thoughts and prayers are with you and your families hoping that you are all well. No need to mention it is the beginning of April. Mother Nature has provided us with enough April madness especially since March Madness has been cancelled. With many of us “Sheltered in Place” and practicing a new Webster Dictionary add-on, “Social Distancing”, the world has certainly changed. Be assured that my team and I at American Recruiters are committed to our clients and candidates to continue to “Be Better” in our service to you.

One service you may not have thought of that we offer, is a Contract Employee opportunity. With economic uncertainty, full time hires may not be in your current plans; however, with contract employees we can provide you with top talent for that new opportunity you are eyeing. Disciplines like, Project Managers, Design Engineers, Kitchen Designer’s, Technical Engineers, In House-Sales etc. are just some of the areas we have a pool of talent waiting to be hooked for your needs. Keep in mind that some fantastic talent is surfacing, and I’m certain you have free time to interview via SKYPE. There’s no need to hire until the storm moves on, but having all the pieces in place to pull the trigger on a superstar can’t hurt either!

Give me or one of my colleagues a call and we will be happy to discuss how we can make this happen for you and your organization. Since many of you are working from home, our American Recruiters Global Foodservice News is a great way to take a break and keep up with what is happening within the industry. Besides the newsletter, I am including a link to a great article about how to keep your Brand relevant during this chaotic time. https://www.forbes.com/sites/jefffromm/2020/03/19/focus-inside-then-outside–empathy-will-help-your-brand-survive-covid-19/#792c3dc917ab .

I hope you find it as informative as I did. Again, our thoughts and prayers are with you and your families. STAY WELL!!

Craig Wilson

President

American Recruiters

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National Restaurant Association Cancels 2020 Show

Organizers of the annual National Restaurant Association Show have canceled the 2020 convention in Chicago over coronavirus pandemic uncertainty, they said. The organizers, in a post to the show’s website said they were making the decision “after many weeks of monitoring the evolving situation” by the Centers for Disease Control and Prevention and the Illinois governor’s office. The show, which had been scheduled for May 16-19, last year celebrated its 100th year and drew more than 60,000 attendees. “We recognize the critical importance of the Show to the industry and we know that this will come as a disappointment to those who had planned for months to attend,” organizers said. “While it is not the outcome we wanted, amid all the uncertainty around the COVID-19 pandemic, the safety of our attendees, exhibitors, sponsors, vendor partners and our own staff is paramount. This is our community and we all must be kept safe.” Former National Football League quarterback Peyton Manning was scheduled as the keynote speaker for this year’s show. The annual show is owned and operated by Winsight LLC, an information services and events company. “Although these developments resulting from COVID-19 require that the 2020 Show not go forward at this time, we are looking forward to partnering with you to make the 2021 Show the best ever,” the organizers said. “If you’re an exhibitor or registered attendee, you will have received an email with this information and further instructions will follow on April 7.” Tom Cindric, president of Winsight Exhibitions, in a letter said attendees could email questions to the organizers at nraregistration@winsightmedia.com and exhibitors could contact them at nraexhibitorservices@winsightmedia.com. Source: Nationl Restaurant Association.

IFT20 Canceled, will Transition to Virtual Event

The Institute of Food Technologists has canceled the IFT20 annual meeting and food expo due to the evolving coronavirus (COVID-19) situation. The event was scheduled for July 12-15 at McCormick Place in Chicago. IFT20 will now take place as a “virtual event experience,” said Pam Coleman, president of the IFT. “Working in an industry responsible for feeding the world, we are being particularly challenged by this pandemic,” Ms. Coleman said in a video statement. “It is in times like these that we must work together for the common good, to ensure our food supply is safe and our supply chain remains uncompromised.” The virtual event will offer “an engaging, accessible and inclusive platform to convene our global community, enabling us to connect, learn, share knowledge and advance the science of food and food innovation,” she added. “This was believed to be the best and safest course of action after careful consideration of evolving COVID-19 pandemic developments,” she said. “Many factors were considered when making this decision, the most important being the safety of all involved.” The IFT has offered to issue refunds to exhibitors or roll over booth fees to the following year’s event. Further details will be shared at iftevent.org in the coming weeks. Source: Food Business News/ The Institute of Food Technologists.

New York City Restaurant trying to Stay in Business

In the battle to keep their New York City restaurant going despite sharp restrictions during the coronavirus outbreak, the owners of Il Posto Accanto tried something Beatrice Tosti di Valminuta would have considered sacrilege in normal times. That was offering their traditional Italian dishes for delivery “which never, never, never, ever, ever, ever happened before,” she said. “I like my food to go from the kitchen to the table, and that’s it!” On Friday, she said she and husband Julio Pena decided to suspend operations for now because employees were wary of being out in New York City as it has become the U.S. epicenter of the contagion. “We respect their feelings,” she said. “It’s not like we were making money.”

ECONOMIC IMPACT OF THE OUTBREAK:

* Staying afloat: $2.2 trillion bill offers economic lifeline
* Stocks drop, but hold on to weekly gains after a big rally
* Jobless claims soar in Oregon from COVID-19 layoffs
* EU leaders order up recovery plan for after coronavirus

Across the United States, restaurateurs are transforming operations to try to stay afloat. The National Restaurant Association warns the outbreak could cost 5 million to 7 million jobs and hundreds of billions in losses and is pushing for a special federal relief package for restaurants. In an industry of traditionally tight profit margins, some decided it’s time to take chances. Frisch’s Big Boy restaurants, a Cincinnati-based chain that laid off more than a third of its 5,000 employees in the first days of bans on in-restaurant dining, last week pivoted into the grocery business. Besides its signature Big Boy double-decker burgers and onion rings, customers at its 100 restaurants in Ohio, Indiana and Kentucky can buy bread, milk and and produce at its drive-thrus and carryout counters and via home delivery. Frisch’s saw a quick jump in revenues at a time when people have been frustrated by long lines and shortages at traditional supermarkets. Toilet paper is in high demand, and Frisch’s and others are using it as a lure. Westmont Diner in Westmont, New Jersey, has added it to carry-out options at 60 cents a roll, along with paper towels, soap, bleach and other household needs. Lindey’s in Columbus, Ohio, throws in a free roll with all takeout orders. Frontier in Chicago gave out decks of cards to homebound customers with their carryout dinners. With the number of states with stay-at-home orders growing, some restaurateurs decided to shut down. Cameron Mitchell, based in Columbus, said carryout offerings weren’t bringing in enough business to keep his namesake chain of 36 restaurants in 12 states going. More than 4,000 employees were laid off last week. Some fine-dining restaurants unused to carryout are trying scaled-down menu at bargain prices.

COPING WITH THE OUTBREAK

* A New York doctor’s story: “Too many people are dying alone”
* Coronavirus cases hit 2 largest cities differently
* Couples in quarantine: Stress, anxiety, fear of the unknown

In Chicago, patrons can now carry out food for a fraction of the typical dine-in tab at Alinea, where nabbing a seat typically requires reservations weeks in advance and dinners can cost as much as $395 per head. Alinea now offers takeout meals of beef wellington, mashed potatoes and creme brulee for $39.95, and reports strong sales so far. Meanwhile, in Los Angeles, Mayor Eric Garcetti said Monday that with Californians under a stay-home edict, restaurants are allowed to deliver alcoholic beverages along with meals to boost their revenues and well, because booze. Sitting in the nearly empty Frisch’s “Mainliner” restaurant where the chain originated in suburban Cincinnati in 1942, CEO Jason Vaughn said customers at the privately held chain’s 100 restaurants have asked for additions, such as bottles of orange juice, quarts of soup and coffee for home. Frisch’s is trying to leverage its supply chain to accommodate requests. Vaughn predicts the crisis will change the industry. “People have changed habits,” Vaughn said. “When the green light goes on, we don’t expect to come back as status quo … when we go to whatever that new norm is, we’ll see if we can continue it (groceries) if it’s a service the community wants.” In New York, Tosti said leftover meals will be given to city firefighters. She said the restaurant’s future after some 15 years of operation will depend on how long quarantining and edicts against in-restaurant dining last. “I’m better at taking it one day at a time,” said the Rome-born restaurateur. “We can hope for a better day.” Source: The Associated Press.

The Cheesecake Factory Tells Landlords Across the Country It Won’t Be Able to Pay Rent on April 1

The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis. The Calabasas Hills-based company informed all of its landlords in a letter dated March 18 (reproduced below) that a severe decline in restaurant traffic has decreased its cash flow and “inflicted a tremendous financial blow” to business. Cheesecake Factory’s affiliated restaurants, such as Rock Sugar and North Italia, will also not make April 1 rent payments. Company chairman and CEO David Overton writes, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.” He continues, “we appreciate our landlords’ understanding given the exigency of the current situation.”

The letter says that the company hopes to resume paying rent as soon as possible. When asked for comment regarding the non-payment of rent on April 1, Cheesecake Factory representatives said the following: In these unprecedented times, there are many factors that are changing on a daily basis given governmental regulations and landlord decisions to close properties. We have to take both into consideration in terms of understanding the nature of our rent obligations and with respect to managing our financial position. We have very strong, longstanding relationships with our landlords. We are certain that with their partnership, we will be able to work together to weather this storm in the appropriate manner. The Cheesecake Factory was founded in Beverly Hills in 1972 and maintains its original location on Beverly Drive, with 39 locations in California. In total, it operates 294 restaurants in 39 states, plus the District of Columbia, Puerto Rico, and Toronto, Canada. In 2019, the the company also acquired Phoenix-based Fos Restaurants, including North Italia, Flower Child, and The Henry. Most of the company’s landlords are malls, including Simon and Westfield. In telling landlords that it will not be able to pay rent, the Cheesecake Factory essentially confirms that it is in the same position that many independent restauranteurs currently find themselves in. In a statement to investors on March 23 — five days after the letter to landlords — the Cheesecake Factory announced that it would curtail development of unopened restaurants and tap into a $90 million credit line to increase its available cash. Since the outbreak of the coronavirus, the Cheesecake Factory has closed 27 locations across the country, and pivoted other locations to a takeout and delivery-only model — which it just days ago was enabling the company to “operate sustainably at present” — and its stock price has fallen by more than 50 percent in the past month. With 38,000 employees, the Cheesecake Factory is one of the largest restaurant employers in the country. Given its recent stock woes and the ongoing reduction in business due to the coronavirus pandemic, it seems possible that it, like many restaurants, could end up needing a bailout to survive. Source: the eater.

Federal Law Mandates New Paid Leave Requirements for Restaurant Workers Affected by Coronavirus

Restaurants, and other companies in the United States, with fewer than 500 employees are now required to pay employees who miss work due to issues related to the novel coronavirus pandemic, following the signing into law on March 18 of the Families First Coronavirus Response Act. That includes sick leave and, in most cases, leave to take care of children. Starting April 2, any workers subject to quarantine or isolation due to COVID-19, as well as patients experiencing symptoms and awaiting diagnosis, must be paid their regular pay up to $511 per day, up to a total of $5,110, according to the law. Additionally, workers who aren’t sick themselves but are caring for others in quarantine, or for a child with symptoms similar to those of COVID-19, are eligible to 2/3 pay up to $200 a day and $2,000 total. Full-time employees get a total of 80 hours of paid sick leave, and part-time workers get the average number of hours they work in a two-week period. The law specifies that employees don’t need to find a replacement for their shifts, nor do they need to accrue paid sick time or undergo a waiting period before they are eligible for pay in either of these situations, nor can they be required to take other paid leave they have accrued.  That’s not the case for an additional employee benefit enacted by the law, which gives paid leave to those who must take care of children because school or daycare is closed or because their child care provider is unavailable due to a public health emergency. After 10 days of unpaid leave, or using paid leave if they’re eligible, employers must pay employees who have worked for them for at least 30 days at least two-thirds of their pay, up to $200 per day or $10,000 total, for up to 12 weeks. Private businesses with fewer than 50 employees may be exempted from paying that last benefit if doing so “would jeopardize the viability of the business as a going concern,” according to the wording of the legislation. The law stipulates that employers do get tax credit for whatever they pay employees under the new requirements. The law is in effect until December 31, 2020. Source: NRN

Golden Corral Shuts all Company Units, Furloughs 2,290

Golden Corral said it has closed all 35 company-operated restaurants and furloughed 2,290 employees because of the COVID-19 pandemic. The franchisor said that “some” of the buffet chain’s 454 franchised stores remain in operation, offering takeout and delivery. Employees were informed of the move in a “virtual” town hall-style meeting with corporate officers. “It is truly an emotional and challenging time for our country,” Golden Corral CEO Lance Trenary said during the meeting. “The realities of the current situation have forced us to make difficult decisions.” Golden Corral said that it will provide food for the furloughed employees to feed their families and will assist them in seeking unemployment benefits. The buffet chain had been heavily advertising its takeout service via network TV. Restaurant Business.

Texas Billionaire Who Levered Restaurant Empire Hit on All Sides

As he prepared to host an annual Mardi Gras celebration at a beachfront resort outside Houston, business was booming, pushing his personal fortune to more than $5 billion. A few weeks later — after the Covid-19 pandemic brought the travel and leisure industry to a virtual standstill — his casinos and restaurants are shuttered and burning cash, 40,000 of his employees are temporarily out of a job, and a third of his net worth has evaporated. Few could have predicted the devastating impact that the coronavirus outbreak would have on the global economy. Any business exposed to leisure and entertainment is struggling. Yet Fertitta’s use of financial leverage to build his riches — including the purchase of a basketball team — now leaves his corporate empire particularly at risk. “We are trying to survive,” the 62 year-old said in an interview with Bloomberg on Tuesday, warning that the U.S. could plunge into an economic crisis if the authorities don’t allow businesses to reopen in some capacity over the next few weeks. “I have enough liquidity to ride this out. I can’t go forever but I can go for a few months.” It’s hard to find any part of Fertitta’s business that’s not suffering as a result of the outbreak. His Golden Nugget casinos have been shut. Hundreds of bustling restaurants he operates under the Landry’s Inc. umbrella — including Del Frisco’s steakhouse and Bubba Gump Shrimp — are closed or open for take-out only, generating just 4% to 5% of their usual business. In his home state of Texas, where Fertitta enjoys near iconic status, one of the worst oil crashes in history is expected to further dampen demand for entertainment and dining. Even the Houston Rockets, which he acquired for $2.2 billion in 2017 by saddling more debt on his other businesses, are sitting idle after the National Basketball Association suspended its season. “We are doing basically no business,” the billionaire said in the interview. “I think there have been so many people laid off that it could take up to a year later until we are back to normal.”

Debt Damage

Against this backdrop, the nearly $5 billion of junk-rated debt that Fertitta saddled on Golden Nugget — a holding company for his restaurants and casinos — has now become an even bigger burden, amplifying the damage caused by every dollar of lost earnings. Junk, or high-yield, ratings are assigned to debt that is at higher risk of default. Credit-rating company Moody’s Investors Service downgraded Golden Nugget one level to B3 on Tuesday because of the dramatic hit to earnings and rise in key debt ratios expected from the shutdowns imposed to contain the virus. It also warned that further rating cuts could follow if closures last longer than anticipated.

Debt investors are also getting anxious.

Golden Nugget’s bonds are already trading at deeply distressed levels, having plunged more than 50 cents since the beginning of the month. The company’s subordinated notes trade at 45 cents on the dollar, while more senior bonds trade near 49 cents, according to Trace pricing data. Only two months ago, sentiment in the credit market was so robust that debt investors allowed Fertitta to double the size of a debt-funded dividend he was taking from the company to $200 million. Golden Nugget was also able to lower the interest rate on a $2.4 billion existing loan, which has since tumbled to around 60 cents, according to data compiled by Bloomberg. For his part, the billionaire is confident the company will have access to enough cash to ride out the storm. He has been talking to banks about beefing up liquidity and is even considering buying back some of the deeply-discounted debt with his own funds once things turn around. This year, his restaurants and casinos were expected to generate well over $700 million of cash, more than enough to pay $250 million to service the debt and invest as much as $200 million in new projects, he said. “That leaves you with around $300 million of free cash flow,” he points out. “I don’t think it’s a bad business model.”

Wealth Plunge

The market turmoil has shrunk Fertitta’s estimated net worth by about a third since last month, bringing his calculated fortune on the Bloomberg Billionaires Index to about $3.2 billion Tuesday. The decline was enough to bump him off the ranking of the world’s 500 largest fortunes. Source: Bloomberg.

Landry’s Furloughs 40,000 Employees

Landry’s owner Tilman Fertitta temporarily laid off 40,000 employees, or 70 percent of his company’s workforce, amid the COVID-19 pandemic. The Houston Rockets and Golden Nugget casino owner told Bloomberg News that authorities should consider allowing businesses to operate at a limited capacity in a couple of weeks. He added that restaurants and casinos could operate at 30 to 40 percent of capacity. “I think what we are doing with the shutdown is good but in a few weeks people will need to be around people,” Fertitta told Bloomberg. “Otherwise you are going to go into an economic crisis that is going to take us years to dig ourselves out of.” Fertitta’s comments are similar to President Donald Trump who has reportedly grown anxious about the sinking economy. Trump said he views Easter as a target date for things to return to normal, although health officials advise that social distancing will need to last much longer in order to take the intended effect. Landry’s owns and operates more than 600 locations and 60 brands across the restaurant, hospitality, entertainment, and gaming industries. The restaurant brands include Landry’s Seafood, Chart House, Saltgrass Steak House, Bubba Gump Shrimp Co., Claim Jumper, Morton’s The Steakhouse, McCormick & Schmick’s, Mastro’s Restaurants, and Rainforest Café. All of his casinos have shut down and restaurants operating by takeout are bringing in just 4 to 5 percent of normal sales. Bloomberg reported that Feritta has been speaking to banks about raising as much as $200 million in liquidity in case of emergency. Landry’s has been spending a few million dollars of cash per day, Fertitta told the news outlet. Third-party delivery provider Waitr announced last week that it was expanding its partnership with Landry’s, including the addition of carryout services and new delivery markets. The company also said it will offer jobs to Landry’s employees faced with unemployment due to restaurant closures. Chains have experienced a tough week so far as the COVID-19 pandemic continues. J. Alexander’s said that it is furloughing 3,400 employees and operating a carryout model that will only drive 10 to 20 percent of normal weekly sales. Golden Corral said during a virtual town hall meeting that it is closing its 35 corporate stores and furloughing 2,290 employees. Luby’s announced Tuesday morning that it is temporarily closing 35 restaurants and furloughing more than half of its corporate office. That’s in addition to the 39 units it closed earlier in the week. Now only 37 locations under the brand remain open. For the corporate staff that remains, salaries will be cut by 50 percent. Craftworks Holdings, parent of Logan’s Roadhouse and Old Chicago Pizza, made a similar move this week by furloughing must of its 18,000 employees and closing all of its restaurants after a bankruptcy sale fell through. Source: fsrmagazine.

Red Robin Appoints Anthony Ackil to Board of Directors

Red Robin Gourmet Burgers and Vintage Capital Management, LLC, an investment firm with beneficial ownership of approximately 11.6 percent of the company’s outstanding shares, announced that they have reached an agreement to appoint Anthony Ackil to the Company’s Board of Directors, effective immediately. Ackil is the fifth independent director to be added to the Board in the past eight months. Anthony Ackil is a highly qualified restaurant industry executive. He founded B.Good, a private restaurant chain with seventy units in 10 states and four countries, and served as its CEO from 2004 to 2018. With the appointment of Ackil, the Board will comprise 11 directors, 10 of whom are independent. We are pleased to welcome Anthony to our Board as an independent director,” says David A. Pace, Red Robin’s Board Chair. “Anthony is a well-respected restaurant industry executive and we believe he will enhance our Board’s collective experience and expertise. The Board is confident that this agreement with Vintage is in the best interest of our shareholders, team members, guests, franchisees and partners, and we look forward to working with Anthony as we continue to execute our transformation strategy.” “We appreciate Red Robin’s constructive approach, and we are pleased to reach this agreement. We have great confidence in the Company’s newly appointed CEO, Paul Murphy, and its recently refreshed Board, and we look forward to working with the Company towards our mutual goal of positioning Red Robin for success and value creation,” adds Brian Kahn, Managing Partner of Vintage Capital Management. Pursuant to the terms of the agreement, the company has temporarily increased the size of the Board to 11 directors and will include Ackil in the company’s proxy statement for election at the 2020 Annual Meeting of Stockholders (the “2020 Annual Meeting”). As previously announced, Director Stuart Oran has decided not to stand for re-election at the 2020 Annual Meeting of Stockholders. Following Oran’s retirement from the Board, the Company expects that the Board size will be reduced again to 10 members. In addition, Vintage and certain of its affiliates have agreed to certain customary standstill and voting provisions, including, but not limited to, voting its shares for all of Red Robin’s nominees at the 2020 Annual Meeting. Vintage has further agreed to withdraw its director nominations for the 2020 Annual Meeting. – Source: fsrmagazine.

Fund Formed to Provide $500 in Aid to Restaurant Workers in Need

Restaurant employees who suffer a financial hit from the COVID-19 pandemic will be able starting April 2 to request a one-time payment of $500 from a relief fund being set up by the National Restaurant Association Educational Foundation (NRAEF). The funds will be provided on a first come, first served basis to help impacted workers pay for rent, groceries, medical care, utilities, transportation, child care and other fundamental expenses. The money for the Restaurant Employee Relief Fund (RERF) will come from donations. Founding partners of the fund include PepsiCo, Uber Eats, Constellation Brands, Moet Hennessy USA, Ecolab, Cargill, Boston Beer Co., Shift4 Payments, P&G Professional, The Elliot Group, Davis Wright Tremaine LLP and the Light Foundation. Celebrity chef and TV star Guy Fieri is serving as spokesperson for RERF. One hundred percent of donations will be redistributed to workers in need, the NRAEF said. “Early estimates indicate that as many as 5 million to 7 million restaurant workers may lose their jobs due to the COVID-19 crisis, and many already have,” NRAEF President Rob Gifford said in a statement. “In the face of this pandemic, we are asking the nation to join us in protecting vulnerable restaurant workers through your generous financial support.” Individuals and businesses are encouraged to make a donation via the fund’s website, RERF.US Source: Restaurant Business.

Chipotle Pays Employees an Extra 10% During COVID-19 Crisis

Chipotle Mexican Grill is boosting hourly pay by 10% for the next couple of weeks, joining other chains in offering enhanced benefits for employees during the coronavirus crisis. The “assistance pay,” retroactively effective from March 16 through April 12, is a way of “expressing our appreciation for those who are willing and able to continue working during this time,” Chipotle wrote in an email to customers. In addition, Chipotle has expanded emergency-leave benefits for those affected by COVID-19, allowing them to continue to receive their regular pay if they’re unable to work due to the illness. Further, the chain is not enforcing the hourly work requirements for employees enrolled in Chipotle’s debt-free degree or tuition reimbursement programs. Earlier this month, McDonald’s vowed to continue to pay hourly workers who were quarantined over coronavirus concerns. Starbucks said this week it would pay employees an additional $3 an hour through April 19, in addition to paying them catastrophe pay even when they can’t come in for their shifts. Source: Restaurant Business.

Opening Day Felt all Over

If you ever have attended Opening Day at Target Field, you know the only area jammed with more Twins fans than Target Field Plaza before the first pitch is a stretch of restaurants along First Avenue. The downtown patios and bars at Kieran’s Irish Pub, Cowboy Jack’s, the 508 Bar and Restaurant, O’Donovan’s Irish Pub, the Depot Tavern, the Loon Cafe and Gluek’s Restaurant & Bar fill with dark-blue Twins jackets, baby-blue Twins jerseys, red Twins hats and the rolling, chattering hum of expectation. Next Thursday was supposed to be the Twins’ 11th Opening Day at Target Field and the first of 81 home games in one of the franchise’s most anticipated seasons. Instead the spread of the COVID-19 virus has led Major League Baseball to suspended all activities indefinitely, and all of those bars and restaurants are closed for the time being. The combination of those two outcomes — not just the state of Minnesota order to close all dine-in restaurants, but also the total shutdown of sports — has put sports bars and restaurants in the Twin Cities in a difficult situation. “For Gluek’s, we survive on events,” said operator Dave Holcomb, whose family has owned the restaurant since 1934. “We’re obviously kitty-corner from Target Center, a block from Target Field, even First Avenue people going to shows, we get a big push for those concerts, even the Hennepin Theater District. “At least 75 percent of our income is based on events. We completely rely on it. Even if they allow the restaurants to open back up, but the Twins are a month out or the Wolves season is over, it’s going to be tough going anyway without the events.” Holcomb said that when the city started postponing sporting events, the writing was on the wall. “They canceled the boys’ basketball tournament and then the NCAA wrestling tournament at U.S. Bank Stadium was going to be here; even the Twins first two weeks got canceled and this was early March,” he said, recalling that he thought then “something must be going on more than I know, and more serious than I know.” And while he’s optimistic that events will return and restaurants will reopen, he is worried for his staff. The National Restaurant Association estimated that in 2019, restaurant and food-service jobs accounted for 9% of employment in Minnesota, and in 2018 the estimated sales in restaurants around the state was $10.7 billion. Some sports bars are trying to rally amid this sports shutdown. Gluek’s tried doing curbside delivery for a day but quickly realized their food wasn’t thought of as takeout. Other sports bars are trying takeout, as well. For Holcomb’s staff, a lifeline came from a GoFundMe campaign that has raised over $3,000. “One of our best customers did that for us, did it all on his own,” Holcomb said. “That’s good for the staff to keep them in a little bit of money.”

A new rhythm

Rob Germinaro, the general manager of Alary’s in St. Paul six blocks away from the Xcel Energy Center, said it continues to serve customers with curbside pickup. He’s focused on helping customers, not on the restaurant being hurt by forces outside its control. “We’re seeing a steady-but-definitely-there uptick in sales everyday once people find out that their most beloved or favorite restaurants are open,” Germinaro said. “… For my own family, it’s a kind of a shock, and it made everything very real. Everyone is trying to find a new rhythm for what the world is now.” Germinaro said the return of sports will mean more than just the return of normalcy to his restaurant. “I think getting sports back is important to the nation,” he said. “Sports does a lot of different things for a lot of different people. For some people, it’s entertainment, for some an excuse to get together with neighbors and family. Sports does a different thing for every person.” Rick Montpetit owns Gabe’s by the Park with his two brothers Kevin and Dan. Two weeks ago, he was getting his NCAA tournament bracket challenge ready for the restaurant. “March Madness was right around the corner, and for us as well as any bar in the country, especially the first weekend — that Thursday, Friday, those afternoons you have multiple games on all the time throughout the entire day. Those two days especially are always big,” Montpetit said. “[Customers] leave work early or come out on their lunch break. You have all the brackets; every year we run our own bracket with a cool prize, and we had that all set up.” The Wild was on a playoff push, too, and a lot of sports fans were getting excited for the Twins season — more reasons the coronavirus changed the landscape of his business. “We have the TVs on now for something to watch, and all the sports are reruns,” he said. “Even if we were open right now or we did get back to the point where we’re open and the sports aren’t on, it’s going to be interesting. … ESPN is quite different from [what] it was a month ago.” Gabe’s still is offering curbside takeout and Montpetit said that his wife, who works in health care, is making sure he’s up to date on all of the CDC information on sanitation. “As soon as anyone walks in, they wash their hands for 20 seconds — sanitizing between every order. Any time you take off gloves: wash. Before you put on gloves: wash,” he said. “We have a table set up outside so no face-to-face [orders]. Payments over the phone. Car pulls up, we run the food out, set it down, we get back inside and then they can grab the food. Keep health and safety first.” Montpetit did mention one positive outcome of all this: Several regulars have stepped up to help the restaurant. “We have a very loyal customer base, a lot of regulars here,” he said. “They have done a good job of showing their support, whether it’s getting curbside takeout or buying large gift card purchases. “We have been pretty active on social media. Facebook, Instagram … people commenting and staying in touch. We’re trying to staying in touch with our community.” Germinaro believes the return of restaurants and sports will mean so much because the world will get to focus on something besides a pandemic. “It’ll be exciting to get back to that,” he said. “I’m curious to see how the sports world navigates the return of sports, whether it’s completing a season or not completing a season. But I’m most excited for a world where that’s something we can focus on.” – Source: Star Tribune.

David Gibbs is Giving his Salary to his General Managers

The CEO of Yum Brands is not taking a salary this year, according to a federal securities filing Monday, opting instead to use the funds to pay out $1,000 bonuses to general managers at company-operated Taco Bell, Pizza Hut and KFC units. Yum operates about 1,200 of its restaurants, or roughly 2% of the system. The company is also making a donation to the Yum Brands Foundation Global Employee Medical Relief Fund, which will provide grants to employees of company and franchisee restaurants who have a COVID-19 diagnosis or are caring for someone with the virus. The company said it plans to increase the size of the fund through voluntary donations. Gibbs, who took over for Greg Creed as CEO of Louisville, Ky.-based Yum Brands at the beginning of the year, was set to make about $900,000 base salary. Base salaries for executives tend to be a fraction of their overall compensation package, which often include bonuses and stock options. In 2018, for instance, Creed made a base salary of $1.2 million and received overall compensation of $14 million. Still, Gibbs became the latest chief executive to either cut or eliminate their salary as companies furlough workers, close stores or put together rescue packages for franchisees. The chief executives of Darden Restaurants and Texas Roadhouse, for instance, have said they won’t take a salary this year. Yum and its franchisees have closed about 7,000 global restaurants. The company is working with operators’ lenders to help them through the coronavirus shutdown and is considering breaks on royalties to those franchisees in good standing. Source: Restaurant Business.

Restaurant Damage to Date: $25B in Sales; 3 Million Jobs

More than 3 million restaurant jobs and $25 billion in industry sales were lost during the first 22 days of March because of the coronavirus, according to research from the National Restaurant Association. Findings shared with the New York State Restaurant Association (NYSRA) show that restaurants nationwide suffered an average year-over-year sales decline of 47%. The impact forced 44% of operators to suspend restaurant operations and about 70% to discontinue jobs. Half expect further payroll cutbacks during the pandemic. New York’s restaurant industry has been particularly hard hit, according to figures released by the NYSRA. More than 250,000 restaurant workers have been left unemployed, and sales have dropped by an average of 58% for an aggregate loss of $1.9 billion for the first three weeks of March. About 78% of restaurant operations in the Empire State have laid off employees. “Our members are being tested across the state like never before,” Melissa Fleischut, CEO of the NYSRA, said in a statement. “They’ve had to adapt on the fly as this situation isn’t changing by the week or day; it is changing by the hour or minute. “We urge everyone to utilize takeout and delivery from their favorite restaurants during this difficult time.” New York has been the domestic epicenter of the COVID-19 pandemic, with nearly 60,000 cases confirmed as of Sunday, or more than half the total cases reported for the United States. Gov. Andrew Cuomo has referred to the state as the nation’s “canary in the coal mine” and warns that’s what happening in his state is a preview of what other areas can expect. The Association had earlier projected that the U.S. restaurant industry would lose $225 billion in sales and 5 million to 7 million jobs by mid-June. It also estimated that 3% of restaurants have already permanently closed as a result of the pandemic, according to a survey, and suggested that another 11% could close within a month. Source: Restaurant Business.

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