To Our Valued Subscribers:

On behalf of me and my colleagues at American Recruiters, we hope you are all safe and healthy. We also hope you had a safe and secure Easter or Passover. This is certainly not what any of us were envisioning at the start of 2020! With the NRA show being cancelled, and the restaurants that are open only offering take out or delivery, we are well aware that that industry will not be the same for a long time. However, one thing is certain, just like after 9/ 11 we will make a comeback and in time, this crisis will be another memory that we will all have shared. Will you be ready for the comeback?

Due to the many furloughs, staff cuts etc., my colleagues and I have developed an amazing network of incredible emerging talent that you can access by contacting us. Now is the time to begin your recovery strategy and having the key talent to take you where you want to go will be your foundation. Call or e-mail me or my associates and we will be ready to assist in your endeavors. Now for the good news, usually every April 15 we must open our wallets for Uncle Sam. Well, we now have until July. Don’t know what shape we will be like in July, but you have the time to read this edition of American Recruiters Global Foodservice News and it will keep you abreast of our industries latest happenings. Again, on behalf of all of us at American Recruiters, STAY SAFE and BE WELL.

Craig Wilson

President

____________________________________________________________________________________________________________________________________________
Franchises, Trucking Groups Team up to Ensure Drivers Keeping Food on Store Shelves have Places to Eat

The country’s commercial truck drivers are keeping shipments rolling to grocery stores during the coronavirus pandemic to make sure people have food. With restaurants cutting back service, who’s making sure truck drivers have places to eat out on the road? Truck drivers have been called “the thin line,” holding daily life together in terms of delivering necessary goods and services. As a lot of business has been cut back to slow the spread of the new coronavirus, trucking, considered one an essential industry, has been going full bore. But as Greg Fulton of the Colorado Motor Carriers Association recently recounted, finding places to eat, sleep or even use the restroom can be challenging when restaurants are closed to dine-in customers and businesses are restricting access.

While many restaurants offer take-out or drive-thru service, how does someone navigate an 18-wheeler up to the window at a McDonald’s? Where do you park the rig for curb-side service? Those are some of the questions being asked by trucking associations. One of the answers is a new effort by the International Franchise Association to encourage its members to accommodate the people hauling the in-demand food, goods and medical supplies. The association is working with the Owner–Operator Independent Drivers Association and The American Trucking Associations to give drivers more options. Some internationally known franchises, including McDonald’s, are coming up with ways to get food to truck drivers who can’t use the drive-thru or park somewhere, hop out and pick up take-out, said Josh Merin, the franchise association’s chief of state and vice president of international affairs. “Generally speaking, due to both regulations and terms of insurance, restaurants are not able to serve foot traffic in drive-thrus,” Merin said in an interview. And there might not be parking available at restaurants offering take-out service. “Truck drivers are playing a unique and critical role at the moment, maintaining our supply chains and keeping our economy functioning,” Merin said. “And (the International Franchise Association) wanted to rally to the call to make sure that truck drivers had appropriate dining options as they are away from their families and often delivering critical supplies in the face of COVID-19.” Trucking associations reached out to the franchise association to see if its members would work with drivers, “and so far the response has been great,” Todd Spencer, CEO of the Owner–Operator Independent Drivers Association, said in a statement. Among the first franchises to join the endeavor are Firehouse Subs, McDonald’s, Nathan’s Famous, Ruby Tuesday, Shoney’s, Sonic, Fuzzy’s and Long John Silvers. The restaurants are using a variety of methods to get food to truck drivers, depending on the franchise and location. McDonald’s says drivers can use a mobile phone app to order and pay. The food can be picked up at a curbside sign designated for truckers. Firehouse Subs said on the franchise association’s website that most of its restaurants are in strip malls and there should be plenty of parking. Drivers can pick up their food at spots designated “Rapid Rescue To Go.” Many of the restaurants are offering discounts to truck drivers as well. “This is really a win-win. We’re at a point where everybody wants to rally together. Everybody wants to help drivers,” Merin said. “At the same time, restaurants are getting caught in the pandemic in painful ways.” – International Franchise Association.

Restaurant Pantries Proliferate

As Americans continue to shelter in place, home cooking continues to rise. That trend, coupled with a scarcity of some items on supermarket shelves, is motivating more restaurants to start selling groceries. Both Potbelly Sandwich Shop and Subway started selling deli meats, cheeses, condiments and other sandwich fixings in bulk last week, and prior to that, California Pizza Kitchen, Tender Greens, Frisch’s Big Boy and Dog Haus entered into the grocery business. Now Panera Bread has launched its version. Panera Groceryis stocked with several varieties of bread, dairy items including milk, Greek yogurt and cream cheese, and fresh produce such as apples, avocados, blueberries, red grapes and tomatoes. Consumers can order via the Panera app or the website and receive groceries through pickup, drive up, drive-thru or delivery. Moe’s Southwest Grill started selling items in household-size quantities. Guests can now purchase 1 to 5 pounds of proteins, such as white-meat chicken, adobo chicken, steak, pork carnitas and ground beef. Black beans, rice, salsa, shredded Monterey Jack-cheddar cheese blend, guacamole, queso and chipotle ranch dressing are for sale, too. Guests can also purchase 3-pound bags of tortilla chips and 12-packs of flour tortillas. Produce, meats, dairy, breads, dry goods, deli sides, dressings and beverages are now for sale at Taziki’s Market, a retail outlet launched by Taziki’s Mediterranean Cafe. Items are available for delivery or pickup in Nashville and Memphis, Tenn.; Richmond, Va.; Atlanta and Denver. Taziki’s plans to expand the program across its various other locations throughout the coming months. Grab-and-go coolers at Newk’s Eatery locations are stocked with produce items, including bell peppers, carrots, tomatoes, cucumbers and lemons, as well as cheeses, hard-cooked eggs, wine and beer. Also available from Newk’s Pantry are toilet paper, paper towels, pecans, dried cranberries and a few baked goods. Pollo Tropical added the Pollo Pantry, with a limited selection of prepped foods. On hand are a citrus-marinated whole chicken for $5 and six marinated boneless breasts for $10. Also available are ready-to-eat white rice and black beans in large packages that can feed up to 10 people for $5. Source: Restaurant Business.

Independent Restaurants Upended by Coronavirus Rethink off-Premise Business Models in a Post-Pandemic World

Up until late March, The Winery Restaurant & Wine Bar had only dabbled with takeout at its three Southern California fine-dining restaurants. Carryout at the concept was mostly geared towards VIP diners looking to take home jumbo Maine scallops, shrimp risotto and mahi mahi dishes during a busy work week. “As a fine-dining establishment, it’s really not our forte,” said JC Clow, co-owner of the wine country-inspired restaurants in Tustin, Newport Beach and San Diego, Calif. But all that changed in late March when the governor of California ordered residents to stay at home. At the same time, federal health officials began advising Americans to social distance and refrain from dining out at restaurants and bars. At that moment, Clow said “everything hit the fan for us.” With dining rooms temporarily shuttered across the U.S., restaurateurs like Clow have had to upend their business models to survive the catastrophic impact the virus has had on the restaurant industry. The National Restaurant Association pegged losses to reach $100 billion by the end of April. For quick-service and fast-casual chains, the pivot to carryout and delivery services during the coronavirus pandemic has been relatively easier as many of them had already embraced the on-demand movement.

But that hasn’t been the case for full-service independent restaurants. Concepts accustomed to serving luxury meals on white tablecloths have been forced to add delivery, curbside carryout and even meal kits for the first time to keep revenue flowing and workers employed. “Curbside and online ordering — it’s been a lifesaver for us,” said Scott McIntosh, owner of two upscale casual-dining restaurants and one fast-casual taco eatery in Orange County, Calif. For many, it was their first time offering online ordering and delivery. Uber Eats said self-sign ups by independent restaurants have spiked to 10 times the normal rate. Chicago-based Grubhub has logged record sign-ups — about 10 to 15 times the usual for new restaurant leads, the company said. Postmates has seen restaurant sign ups increase 10 times the normal rate, but the surge includes chains, as well. DoorDash declined to comment. But the real surge is occurring with online ordering systems. ChowNow, a veteran supplier in the space, is one player experiencing an explosion.  Founded in 2012, ChowNow offers online ordering through a restaurant’s Facebook page, its website, Google, a ChowNow-created app, or through the ChowNow website. The company is on track to add 4,000 new restaurants by the end of April. Of those, 80% are restaurants with fewer than 20 units, CEO Christopher Webb said. The need is real, but will it stick after dining rooms reopen? “We think the vast majority will continue to offer online ordering via ChowNow now that they’ve witnessed firsthand how profitable it can be when done correctly,” he said. “Most operators also now realize the importance of diversifying revenue streams and offering takeout is the simplest way of doing just that.”

Changing Consumer Behavior. Online offerings by independent restaurants are likely to accelerate as consumers will come to expect it, industry watchers say. “We have also seen a very large number of diners ordering online for the first time,” Webb said. “They realize how easy it is and likely will continue to order online from here on out. It really is a win for both the restaurant and the diner, and I don’t see that changing after coronavirus.” Los Angeles restaurant consultant Laurel Mintz said restaurants that previously snubbed off-premise channels are realizing the advantages of having a robust carryout business. Keeping these revenue channels open in a post-COVID-19 environment is prudent as many diners might be skittish about dining out, she added. “We are not going to be out of this soon,” said Mintz, founder and CEO of Toluca Lake, Calif.-based Elevate My Brand consultancy. “The luxury market is shifting in a major way. The longer [shelter at home] continues, the more the pivot becomes the new normal. And if they can make the new normal profitable, then why not?” That’s exactly the thinking that drove McIntosh to add online ordering. When restaurants reopen in the coming months, he said they’ll have to adapt to how consumers behave — and that might mean giving them expanded delivery and carryout options until diners are ready — emotionally — to come to the table, again. “I don’t see us opening up the restaurant to a flood of business,” McIntosh, a former Claim Jumper executive, said. “I think it’s going to be gradual because of the psyche of people going out.”  Off-premise in a post-COVID-19 world. Prior to the pandemic, McIntosh said takeout represented about 5% of his business at his three Orange County, Calif. concepts: the upscale casual Reunion in Anaheim and Asada Cantina in San Clemente; and fast-casual Asada Tacos + Beer in Laguna Beach. McIntosh, who plans to open two more premium casual restaurants later this year, said he’s going to optimize his takeout menu in a post-COVID-19 world. Turning off that spigot, he argued, wouldn’t be fiscally wise. Besides, his restaurants have gotten pretty good at it. “I do think that we will continue to have a good takeout business and we’re learning a lot,” he said. That’s been the story for many independent operators around the country. As they think about the future, they know they can never turn their back on off-premise — even delivery.

Some restaurants, however, are doing delivery on their terms including Pubbelly Sushi, a four-unit concept in South Florida known for its modern Asian dishes.  The casual-dining concept, owned by five-time James Beard semifinalist Jose Mendin, began using delivery aggregators a few years ago after resisting for a long time. “We did it because the demand was so high,” Mendin said. But when takeout and delivery became Mendin’s only revenue stream in late March, he said he knew he had to come up with an alternate plan where he wasn’t giving away 30% of his sales to the operators. So he created his own delivery fleet using some of his more than 100 employees, all of whom were paid their full wages in the first two weeks of the pandemic. “We’re trying to take care of them,” he said. Now that he has the right software in place, and insurance, he said he’s considering dropping third-party operators altogether when his Florida restaurants are allowed to reopen. “I know eventually we would love to have our own [delivery] platform and take out the third party,” he said. “We’re just hoping that this passes as soon as possible. We don’t know the end game.” Delivery: a lifeline. At the Winery, Clow said he and his partners have been making their own delivery runs, when necessary. But most deliveries are being generated through Postmates and Grubhub. When he closed two of his three restaurants in mid-March, he signed up with delivery aggregators within two days. Both have reduced or waived commissions and startup costs because the Winery is a new customer. Delivery wasn’t something Clow ever thought his restaurants would do prior to the coronavirus outbreak. “We just didn’t feel it was really in our lane,” Clow said. “The Winery is about dining in — the experience of coming to a fine-dining restaurant and being taken care of, looking at a wine list with 650 selections and having one of the best French chefs in Southern California cook for you.” But now delivery and carryout have been a lifeline for the restaurant. He’s selling 75% of the restaurant’s main menu online including a cheese and charcuterie plate ($21.95), the restaurant’s signature Grand Cru half-pound wagyu burger ($17.95) and 16-ounce ribeye ($44). The demand for premium carryout meals has taken Clow by surprise. Online sales have been growing 20% each week. Regulars are demanding top favorites from salmon to bone-in filet to wagyu beef burgers. During one long four-day weekend, they offered a prime rib dinner for two that included two 10-ounce cuts of prime rib with fixings that included choice of Caesar salad or soup, au gratin potatoes and crème brûlée. All for $79. “We sold over 300 orders of prime rib in four days,” said Clow, who earned his fine dining chops in the mid-1990s working as a general manager for Morton’s The Steakhouse. Some days the phone is “ringing off the hook, which is really cool,” said Clow, feeling humbled by the support from locals. While delivery has helped drive revenue, Clow doesn’t think he’ll continue with the services if the commission rates return to normal. “It’s probably not worth our time because of the percentages they take,” he said. Instead, he plans to focus on carryout because it has become so popular. But it will evolve to curbside carryout with a fine-dining twist. “We’re looking into the next level. We’re looking at packaging that’s the crème de la crème — the Tiffany’s or Nordstrom’s of to-go,” Clow said. Source: Restaurant Hospitality.

Red Robin Closes Stores, Cuts Staff

With same-store sales falling 65.2% for the week ended April 12, Red Robin Gourmet Burgers and Brews has temporarily shut 35 company-run restaurants, eliminated 35 headquarters jobs and reduced the pay of remaining home-office staff members by 20%. The company said it is currently working with landlords to restructure its leases. Employees of the closed units were either furloughed or transferred to other Red Robin branches, the company said. Most of the stores were mall locations, it noted. The franchisor operated 454 of the casual chain’s 574 units as of Dec. 31, according to Technomic. It did not reveal how many franchised units have been closed. Stores that remain in operation averaged $19,033 for the week ended April 12, Red Robin said in a securities filing. That compares with an average roughly one month earlier of $7,534. The more recent week’s results included off-premise sales for Easter. “We continue to be encouraged by the strong growth in our off-premise sales, which is helping to reduce the impact of the temporary closures on the dine-in business,” CEO Paul Murphy said in a statement. The company did not reveal what sort of exit package was provided to employees who were furloughed because their stores were closed. “For all those team members affected by the changes announced today, I sincerely thank you for all your contributions to Red Robin and commitment to serving our guests,” Murphy said in the announcement. Source: Restaurant Hospitality.

Association Offers Discount Drug Card, Telemedicine Programs to Members

The National Restaurant Association is offering two programs to help members and their employees stay healthy and safe. Through its new partner, Healthiest You, the Association is making a telemedicine option available to its members. The service is $7/month per employee. There are no co-pays, and all family members can use the service. Those interested in participating in the telemedicine option can contact healthcareinfo@restaurant.org for full details. The Association is also providing free access to a pharmacy discount-card program that offers better pricing and discounts on prescriptions not covered under insurance. The program, administered through OptumRx®, leverages a large network and buying power to access reduced prices. Anyone can use the card, including those who are uninsured. Here are some features of the program. The card is available now through email, text message, or at-home printing Discounts are guaranteed on all FDA-approved medications at more than 60,000 pharmacies nationwide Participating pharmacies include Walmart, Walgreens, Rite Aid, Target, Costco, Good Neighbor, CVS, Duane Reade, and Sam’s Club The card is available to all employees and their families at no cost — and zero cost to employers. Source: The National Restaurant Association.

Smoothie King Serving New Immune Builder Smoothie