To Our Valued Subscribers:

Hard to believe it is the middle of May. A belated Happy Mother’s Day to all your families. I am sure this year was a very different experience that previous Mother’s Day events. But as mom always said, (or was it Scarlett O’Hara in Gone with the Wind?) “Tomorrow is Another Day”. Speaking of another day, many States are now phasing in reopening. Good news for sure. As more businesses reopen, remember me and my colleagues at American Recruiters have a great pool of full time and contract superstars that can get you ramped up quicker in your quest to be at full capacity. Give a call or drop an email and see where we can assist you in this endeavor. Along those lines , in a recent study authored by the pros at McKinsey & Company, they provide eight action steps for your restart. Here are a few that I believe are key to your success:

• Create a Detailed Relaunch Map: This should be a country by country, site by site, segment by segment, customer by customer, and product by product—in order to prioritize recovery opportunities. This map will guide production, supply chain, and marketing and sales efforts, and help determine a recovery timeline for each site.
• Sustaining Value Creations Born from Crisis and Reinvesting in Recovery: innovation of both employees, process and product has made huge leaps during the lockdown. With the restart, these new performance achievements could be reinvested and contribute to enriching the company’s material and intangible assets (employees) in the longer term. It is worth making a rigorous inventory and integrating the new achievements into new post-crisis operating standards, in a process of continuous improvement.

These are just a few of the actionable suggestions the study suggest. To discuss the complete study, or to inquire about the available talent we can offer, give a call. Enjoy the latest edition of American Recruiters Global Foodservice News and good luck in your restart.

Craig Wilson

President

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Planning to Reopen Your Restaurant? Here’s What an Expert Would Do

We’re now firmly in the reopening conversation. The list of states lifting restrictions continues to grow, and while this remains a market-by-market conversation in terms of specific regulations, restaurants are preparing under pretty similar directives. What do guests want to see? How can you make employees feel safe? It starts with those two questions, but there are no shortage of nuances to consider. Jim Osborne, the SVP of customer strategy and innovation at US Foods, chatted with FSR about best reopening practices and where operators can begin addressing this new reality.

So let’s start from day one, once your restaurant decides to reopen. How do you address the layout? Most states are putting capacity limits in place already. What are some creative ways operators can space out tables, remove communal seating, and so on? The layout of the restaurant will likely be informed by the state’s health guidance, and whether the restaurant is allowed to open at 25 percent capacity, 50 percent capacity, so it’s best to start with a good understanding of the regulations in place. Specific to your question about seating, operators should absolutely get creative with the set-up of the dining room and flow. Stagger the seating pattern. Keep diners physically separated by no less than 6 feet. Indicate which tables are “open” and which are “closed” very clearly—either sign them, place an artifact on them, or physically remove them to maintain this distance. In table service environments, unless legally mandated, consider allowing “closed” tables to remain as ”spacers” between remaining tables. Visually indicate they are closed and remove seating. An uncrowded restaurant can be desirable. A vacated one may be disconcerting. Limit or consider no bar service. Bar and counter seating is discouraged, and possibly not allowed. If opened, ensure bar seats are 6 feet apart. Closed bars may be used as employee space, providing easy access to supplies, beverages, and bar sink for handwashing, decreasing the need to enter kitchen.

A lot of operators have spoken about “getting things off the table,” like salt shakers, ketchup, etc. How critical is this? And what are some things you’re seeing, from disposable menus to digital payment? Right now, it is important that restaurant operators make customers feel safe, so from a perception point of view, it is critical to do everything possible to ensure customers their well-being is paramount. In the short-term, restaurant operators should consider disposable or single-serve products. And, we also suggest adding hospitality cards on table describe commitment to diners and staff, and outline cleaning protocols. Similarly, for menus restaurants could consider digital menus or single-use options. Operators are also getting creative with contactless payment, allowing customers to pay online to avoid passing credit cards or cash back and forth.

On the menu note in particular, especially given supply chain concerns and uncertain traffic, are there steps restaurants can take to prepare? Like pared-down options perhaps? Restaurants should absolutely consider simplifying their menus. A tighter, more focused menu allows kitchens to better plan labor and prep needs and run a more sanitized kitchen. Refocus external communications to celebrate a carefully crafted, reduced menu. Focus on what you know guests will love and tell a story that highlights what your restaurant does best. Consider pre-selling items to anticipate capacity and plan the dining floor. Additionally, we’ve seen incredible creativity and innovation over the last eight weeks as restaurants literally pivot their entire operation. Don’t be afraid to lean in to a reduced menu. Your patrons will likely be much more understanding as we’re all experiencing the same challenges. They know they may not find ground beef at the grocery store every trip so getting creative about a different cut of meat or perhaps even veggie or seafood options and celebrating it on social media is a great option.

Turning to the dining room service itself, how do you make customers feel as comfortable as possible, beyond just wearing masks and gloves? What are some tips to assure guests you’re doing everything you can?

Restaurants need to communicate clearly and frequently with guests, which includes “pre-arrival” communications and alerting guests to new “terms and conditions” related to dining at the restaurant. Messaging should be posted on websites, social media pages, in any phone message/“on hold” messages guests listen to when they call the restaurant, etc. In addition, there should be signage throughout the restaurant detailing the precautions restaurants are taking and verbal assurances from servers that management is doing everything possible to ensure a safe and healthy experience. US Foods has seen restaurants post pledges in their windows, telling customers they are doing their part and asking customers to do their part, which means avoiding the restaurant if they feel sick or are experiencing COVID-19 symptoms. Training servers and staff will also be critical. Customers won’t feel safe if servers are not distancing or forget to wear gloves. Building new training programs, putting in place new policies and procedures, ensuring all staff is practicing proper hygiene and knows how to adequately sanitize a surface will be critical. Guests should see staff wiping down the seats, backs of chairs, the table and any other surfaces before they sit down. Even small things like using white gloves in front of house, and black gloves in back of house, is a sign to guests that the restaurant is taking its precautionary measures seriously.

We have also seen restaurants move to reservations only and prohibit walk-ins to limit the number of guests in the restaurant and avoid potential crowding as people wait for open tables.  And if you have the space, separate exterior entry, waiting & dining zones.

And what about for employees? This is a topic that doesn’t seem to get as much attention but is still crucial as restaurants reopen.

We’ve heard from many restaurants with questions about how to create a safe working environment. Preparation and putting in place new policies and procedures will be very important. We recommend all restaurant staff undergo training on how to set up and shut down the restaurant with a deep clean, using tools like color-coded cleaning caddies and bottles clearly labeled so all staff know how to use them. We also recommend asking employees to take certain steps before coming to work, such as taking their temperature and filling out a screening questionnaire that asks staff to confirm they are not coughing or experiencing shortness of breath. Restaurants may also consider breaking up shifts to avoid employee crossover and limit exposure if someone gets sick. If a restaurant typically opens from 11 a.m. to 10 p.m., they could instead open 11 a.m. to 2 p.m. and then again at 5 p.m. to 10 p.m., allowing the day shift to clean the restaurant before the evening shift arrives.

Talk about some of the behind-the-scenes changes that need to be made. What are some core operating procedures restaurants should invest in, from cross-training of staff to cleaning practices, to business modeling for profitability?

First and foremost, understand what your new P&L is going to look like. With reduced table counts and increased expenses, it’s critically important to know how to plan your business and ensure you’re equipped to manage through a different time than you’ve experienced before.  Training staff will likely be one of the more significant behind-the-scenes changes restaurants will make. Restaurants should prepare to invest heavily in training staff on everything from cleaning techniques to how to interact safely with guests to how to properly use personal protection equipment. Restaurants should also invest the time to create new or rethink old policies and procedures and take this time to write or rewrite the playbook. For example, the playbook could include a cleaning and sanitizing schedule, list of approved cleaning chemicals, policies on employee health and wellness, procedures for non-compliance, potential contamination procedures and plans for internal and external communications. Investment in new equipment such as fans to keep air rotating or infrastructure changes to open kitchens and installing barriers where furniture is immovable will be costly as will be purchasing a surplus of PPE, cleaning supplies, etc.

Zeroing in on the staff concern. Many restaurants are worried about rehiring employees and getting their locations full operational again. Are their ways to quickly ramp up this process?

We recommend keeping in touch with employees and updating them on any new plans, policies and procedures that will be put in place when they return so they are aware of what to expect. We would also recommend using the time now, while the restaurant is still shut down or limited to take-out/delivery, to plan and prepare as much as possible. Delegate if possible and share some of the planning work with employees, such as asking them to come up with different staffing schedules for scenarios where the restaurant is open at 25% capacity, 50% capacity, etc. Also, to relieve the burden of immediately reopening, consider a phased reopening, where you open with a limited scheduled and pared down menu, before ramping up to longer hours and a fuller menu.

Contactless and touchless operations appear likely to linger well past COVID-19. For full-service operators especially, what are some key platforms to accomplish this?

My favorite platforms are Toast, Chow Now, and Resy and we are always open to working with operators to showcase these technologies with them along with the benefits. Toast is a platform that allows restaurant operators to quickly and easily set up digital channels like online ordering, a mobile ordering app, contactless delivery and e-gift cards. No hardware or POS purchase is required. Chow Now is an online ordering platform for US Foods that can start working on a restaurant’s operation quickly and easily. If a restaurant doesn’t already have a website, an optimized site can be complete within an hour of signup. Customers also get commission-free access to new customer through ChowNow’s ordering marketplace, as well as its ordering integrations on Yelp and Google. Resy is a complete restaurant reservations and waitlist system, including table management, ticketing, web and app booking, CRM, POS integration and more.  They’ve recently announced they are providing 100 percent relief on all Resy fees and billing through the end of 2020. Source: fsrmagazine.com.

Bamboo Sushi Parent Files for Bankruptcy

Portland, Oregon–based Sustainable Restaurant Holdings (SRH), the parent of Bamboo Sushi and QuickFish, announced that it has filed for bankruptcy. The company said it’s seeking to restructure the business to combat the adverse effect of the COVID-19 pandemic, which limited operations and “significantly affected its ability to generate revenue.” The brand also began a sales process, which it expects to complete in 90 days. “We are facing the same challenges as many other consumer-focused businesses, especially those in the restaurant industry,” said interim CEO Matthew Park in a statement. “In this environment, we simply are not able to generate sufficient revenue to meet our day-to-day and long-term obligations. As a result, during the last several weeks we diligently explored all available options to address our financial situation and preserve the long-term viability of SRH. We determined that using the Chapter 11 process to restructure our business is the best path forward.” The brand received a commitment of up to $1.9 million in financing led by the Bain Capital Double Impact fund. The funds, combined with SRH’s available cash, will help continue operations and meet obligations while the company pursues a sale. SRH has about $4.1 million in unsecured debt. SRH operated 10 locations with 480 employees in Oregon, Washington, Arizona, California, and Colorado. Because of the pandemic, the company has been reduced to three Bamboo Sushi locations in Portland that are offering takeout and delivery.

There are 38 employees—35 at stores and three at the corporate level. SRH intends to continue operating units in a limited capacity and hopes to rehire furloughed employees and resume full operations when mandates are lifted. Before the pandemic, the company was performing well. Revenues reached $18.1 million in 2019, up 35 percent from the previous year. But in late February and early March, the COVID-19 pandemic “severely disrupted” operations. “The cessation of normal business operations has deprived the Debtors of vital cash flow, without which the Debtors are incapable of meeting their obligations in the ordinary course, including obligations to employees, landlords, vendors, suppliers, and other creditors and claimants,” the company said in a filing. SRH hired BMO Capital Markets in March to seek investors or a sale of the business. When that option didn’t work, the company turned to bankruptcy. In May, SRH hired SSG Capital Advisors to continue the sale and marketing process through the bankruptcy. SRH started with Bamboo Sushi in 2008 in Portland. The parent derives its name from an “environmentally conscious design” including reclaimed timber, low-flow water systems, and renewable resources. Bamboo Sushi identifies itself as the world’s first sustainable sushi restaurant. The company joins a list of other restaurant brands that have turned to bankruptcy amid the pandemic, including FoodFirst Global Restaurants, parent of BRAVO Cucina Italiana and BRIO Tuscan Grille, and TooJay’s Deli. Souplantation parent Garden Fresh Restaurants closed all of its locations and is engaging in bankruptcy discussions It was also reported that California Pizza Kitchenis going to restructure its debt to avoid bankruptcy. Source: fsrmagazine.com.

Tony Darden Looks to get Mooyah Burgers, Fries and Shakes to the other Side of the Coronavirus Pandemic

When a global pandemic forces you to close your dining rooms and focus solely on takeout and delivery, it comes in handy to have protocols for that in place already. Of course Tony Darden, president of Mooyah Burgers, Fries and Shakes, an all-franchised concept based in Plano, Texas, with about 83 locations, had no idea that the novel coronavirus was going to transform the way that people interact with restaurants, but takeout and delivery were becoming more of a priority for consumers even before disaster struck. So Mooyah had delivery in place at all of its restaurants by the end of last year. He’d planned to roll out curbside pickup in 2021, but once their dining rooms were ordered closed, they managed to make it happen in seven days. With consumer engagement via social media and the chain’s app, plus sale of groceries and introduction of free delivery, the chain has seen initial sales drops of 40%-50% return to year-over-year declines in the 20s. Under normal times that would still be terrible, but these aren’t normal times, and Darden is confident that his franchisees will see their way through to the other side of this crisis, and that the innovations they’ve made will put them in a solid position at that point. “I firmly believe that the way that consumers are using restaurants right now is going to continue once we get to the other side of this pandemic,” he said. – Source: Restaurant Hospitality.

Buffalo Wild Wings to Open ‘GO’ Format Unit in Georgia

Buffalo Wild Wings will open its first “GO” model restaurant on Wednesday in Georgia, focusing on takeout and delivery orders, the company said. The casual-dining wing chain, owned by Atlanta-based Inspire Brands, said the 1,800-square-foot Buffalo Wild Wings GO unit will feature a walk-up counter, digital menu boards, condensed seating and televisions for guests to enjoy while waiting for their orders. The company said Buffalo Wild Wings GO customers who order ahead will be able to pick up their meal from heated takeout lockers for a “contactless” experience. The new Buffalo Wild Wings GO unit is at 5840 Roswell Road in Sandy Springs, Ga., north of Atlanta. “We’ve seen the success of this model over the past six weeks, with our takeout and delivery business growing over 140%,” said John Bowie, Buffalo Wild Wings chief operating officer, said in a statement. “Buffalo Wild Wings GO is perfect for friends and family who want to enjoy our authentic, New York-style buffalo wings at home.” Buffalo Wild Wings joins a growing number of casual-dining brands creating off-premise versions of their concepts. Scottsdale, Ariz.-based P.F. Chang’s China Bistro Inc. in February debuted its first P.F. Chang’s To-Go location in Chicago and planned to expand to other cities. Tampa, Fla.-based Bloomin’ Brands Inc. in 2017 opened an express version that combined its Outback Steakhouse and Carrabba’s Italian Grill Brands. On Monday, Bloomin’ Brands opened its first standalone fast-casual Aussie Grill, which was introduced as a food-court concept, in Lutz, Fla. Buffalo Wild Wings said its “GO” menu will offer traditional and boneless wings, tenders, sides and all 23 Buffalo Wild Wings sauces and dry rubs. The casual-dining units’ buy-one-get-one Traditional Tuesdays and Boneless Thursdays will be offered in the fast-casual restaurant as well. Buffalo Wild Wings has more than 1,250 locations. Inspire Brands, a division of Atlanta-based Roark Capital Group, also owns the Arby’s, Jimmy John’s, Rusty Taco and Sonic Drive-In restaurant brands. – Source: NRN.

Popeyes Enters China Market in Hope that Virus Fear is Passing

Even after the deadly pathogen caused a record collapse in the country’s restaurant sector, China will become the fast-food chain’s second-largest market in two-to-three years, Raphael Coelho, chief executive officer of Popeyes China, said in an interview Tuesday. Popeyes Louisiana Kitchen Inc., a unit of Restaurant Brands International Inc., which also owns the Burger King and Tim Hortons chains, is sticking to its plan to open 1,500 outlets in the next 10 years. Popeyes is trying to bring its signature Buttermilk Chicken Sandwich into the Chinese market during one of the most perilous times for restaurants. The sector suffered a record collapse in the March quarter, with a 44 per cent sales plunge from a year ago as the economy ground to a halt. E-commerce sales rose 5.9 per cent as consumers were forced to eat at home. The opening of Popeyes’ first store in Shanghai was pushed back to this week from the end March as the virus outbreak caused social restrictions and lockdowns. But Coelho said the company is seeing a rebound in the world’s biggest consumer market that gives it confidence to keep the aggressive expansion plan. “We do witness a V-shaped recovery on a daily basis. Every day, every week, things are slightly better,” said Coelho. “As of now, we have 50,000 pre-registered customers who redeemed coupons from the Wechat account. If five per cent of these people show up on the opening day, the line will be quite big.” Still, the restaurant industry is far from where it was before the coronavirus struck. Even with the lifting of lockdowns, the return of business has been slow as consumer habits change, with many still wary of public gatherings. Many medium and small-sized businesses have shut down while bigger chains are asking for rent cuts. Restaurant Brands is forging ahead in this difficult environment with fast expansion plans for all its restaurants in China. Coffee and doughnut chain Tim Hortons, which entered China in 2019, has received an investment from internet giant Tencent Holdings Ltd. to support its plan to open 1,500 outlets from roughly 50 now, according to a statement Tuesday. Burger King, which has more than 1,300 stores in China, expects to open at least another 1,500 stores in 10 years, said Korhan Kurdoglu, CEO of TAB Food Investments, the operator of Popeyes and Burger King in China and Turkey. “The market is gradually coming back to normalization,” said Kurdoglu. “We are seeing the light in the tunnel, and in two, three months we have the potential to come back to normal.” The company also faces stiff competition from other big-name chains. Yum China Holdings Inc., operator of KFC and Pizza Hut, and McDonald’s Corp. have aggressive expansion plans. At the same time, Chinese consumers have been shifting their preference to healthier options. But Popeyes, the new comer to the market, remains confident it can capture decent returns amid all uncertainties. “I think you can’t get a more competitive market in fast food than in the U.S., but Popeyes is recognized and loved, with a loyal customer base,” said Coelho. “We are confident that in China we can replicate the same thing.” – Source: BNN Bloomberg.

Steak ‘n Shake Permanently Closed 57 of its Restaurants Nationwide.

Biglari Holdings Inc. announced in its first quarter that Steak ‘n Shake’s revenue plunged by $59 million compared to the same time period in 2019 as its restaurants were limited to accepting takeout, drive-thru and delivery orders. “The COVID-19 pandemic had an adverse effect on our restaurant operations,” Biglari said in its quarterly report. Recent Stories from theindychannel.com. We’re OpenWe’re Open Indy: Heavy’s Bar and Grill again filled with customers in Camby. The report said 51 of the Steak ‘n Shake locations that closed were company-owned, while six were franchised, although it is not clear how many of the restaurants that closed were located in Indiana. The closings decreased the number of Steak ‘n Shake locations to 553 from 624 at the end of the first quarter in 2019. The report also said 62 of Steak ‘n Shake’s 306 company-owned restaurants were temporarily closed as of March 31. Dining rooms at most of the Indianapolis-based burger and milkshake chain’s locations closed March 17, while the rest shuttered by the end of the first quarter, the report said. “The COVID-19 pandemic has adversely affected our operations and financial results,” the report said. “The COVID-19 pandemic could cause disruptions to our supply chain. Moreover, we cannot predict how the outbreak of COVID-19 will alter the future demand of our products.” – Source: Scripps Media, Inc.

Wingstop Names Former Chief Experience Officer Stacy Peterson Androes as Technology chief

Wingstop, which is faring well amid the coronavirus pandemic, has appointed former Chief Experience Officer Stacy Peterson Androes as the chain’s new chief technology officer. Androes is returning to the company after leaving in 2019 to work at Service King, a collision repair company based in Texas. Her role was never replaced at Wingstop. Prior to her departure, she served at the company from 2013 to 2019 in technology-focused roles. She “enabled Wingstop to be well-positioned for strong performance during COVID-19” as she helped build the brand’s digital initiatives including delivery and launching ordering via Twitter, Facebook Messenger and Wingbot, the company’s SMS texting tool. “We’re thrilled to welcome Stacy back to Wingstop,” CEO Charlie Morrison said in a statement. “Stacy laid the digital foundation for the incredible growth we’ve experienced over the past five years and is widely-recognized in the industry as being a digital pioneer. Under Stacy’s leadership, we will continue innovating in the tech space and capitalize on the incredible momentum we’ve seen recently as a result of our digital investments.” In her new role, effective today, Androes, left, will “fortify digital investments domestically and expand the strategy to international markets,” the company said. She said she is “incredibly excited” to return to Wingstop as it works toward the goal of becoming a Top 10 global restaurant brand. “While I’m proud of the work we accomplished to put digital and delivery in place originally, the next chapter is even more exciting as we strive to digitize every transaction,” she said. Last week, the Dallas-based chain reported same-store sales increasing more than 30% in the first four weeks of April. That growth built on first-quarter domestic same-store sales increases of 9.9%. The company, which has more than 1,400 worldwide locations, closed U.S. dining rooms on March 16. A majority of the brand’s roughly 1,250 domestic locations have been open for off-premise ordering. – Source: NRN.

STK and Kona Grill Brands Begin Reopening Dining Rooms with Help of Paycheck Protection Program Loans

The parent to the STK and Kona Grill chains has reopened 11 restaurant dining rooms, following social distancing and other guidelines, with another five to return to dine-in service on Monday, officials with The One Group Hospitality Inc. said while reporting first-quarter results. An additional five to 10 restaurants are expected to reopen dining rooms over the next two weeks, said Emanuel “Manny” Hilario, The One Group’s president and CEO. “Although we cannot reasonably predict when we will be able to reopen other closed restaurants and return to normal restaurant dining room operations, we intend to reopen as soon as local jurisdictions permit,” Hilario said of the Denver-based group, which prior to the COVID-19 crisis operated 20 STK steakhouse restaurants in the U.S., Europe and the Middle East, as well as 24 polished casual Kona Grill restaurants in the U.S. The 24 Kona Grill restaurants were acquired out of bankruptcy in October 2019. Subsidiaries of The One Group received on May 4 about $18.3 million in forgivable federal Paycheck Protection Program loans, which the company planned to use to help bring back its workforce, officials said.  The Treasury Department has said public companies would be unlikely to be able to certify that funding couldn’t be found by other means, but The One Group said the PPP loans were necessary to support ongoing operations. “Because the company is a nano-cap public company with limited public float and trading, it has limited access to equity and debt capital markets compared to other public companies,” the company said in its first-quarter report. One Group also has restrictions under its existing credit facility that limit its ability to borrow, raise equity or take on additional debt, the filing said. In March, The One Group temporarily closed several restaurants — including units in Las Vegas, Los Angeles, Orlando and Puerto Rico — and shifted operations at 30 locations to takeout and delivery only.  Recently, the company launched STK Meat Market, an ecommerce platform offering choice, prime and wagyu steak cuts for home delivery, along with a home meal kit to recreate the steakhouse vibe, including playlists for live music from the restaurants on www.STKradio.com, and www.KonaGrillradio.com. Coronavirus has taken a toll during the first quarter, however. Consolidated same-store sales declined 14.1% for the March 31-ended quarter, with March alone accounting for a 55.9% drop after a same-store sales increase of 10% in January and February. For STK, comparable sales decreased 12.8% for the quarter, which included a 58.1% plummet in March following an increase of 11.4% during the first two months of the year. Same-store sales at Kona Grill, similarly, decreased 15.5% for the quarter, including a 53.7% decline in March despite an 8.4% increase in January/February. For the month of April, the company averaged $380,000 in weekly sales for pickup and delivery, which grew sequentially 1.5 times from the first to the last week of the month, the company said. The company attributed $1.3 million in costs directly related to COVID-19, despite efforts to cut costs, such as “reductions in employees,” suspension of third-party services and deferral of nonessential cash payments including all capital projects. Revenues increased 18.5% to $38.6 million for the quarter, but that reflected sales contributions from the addition of Kona Grill to the group. The company reported a net loss for the quarter of $4.9 million, or a loss of 16 cents per share, compared with income of $769,000, or 3 cents per share, a year ago. – Source: NRN.

Ruth’s Chris is Reopening Dining Rooms, Using QR Codes for Reading Menus

Ruth’s Hospitality Group is reopening steakhouse dining rooms this month at 12 of its 86 company operated restaurants in Texas, Florida and Tennessee, the fine dining chain announced Friday during its first quarter conference call. The re-openings come as more than a dozen franchise restaurants have already reopened dining rooms at limited seating capacity ranging from 25% to 50%. The company did not share the locations of the reopened restaurants. At the end of the quarter, about 61 restaurants were temporarily closed. In April, same-store sales decreased 83.5% at company stores. Roughly 20 to 30 more restaurants could reopen by the end of the second quarter, depending on state-by-state lifts of stay-at-home orders. The company’s largest concentration of restaurants are in California, Florida and Hawaii.  “The remainder [of openings] will come in waves,” CEO Cheryl Henry said. Each restaurant will follow state and local guidelines for reopening dining rooms, which could result in a variety of seating capacity rules. “This is not a uniform process,” Henry said. The Winter Park, Fla.-based steakhouse chain said it has made several changes to ensure guest and employee safety.  Workers will wear masks, a standard requirement in most states that are reopening. To limit menu handling, dinner and wine menus will be available via QR codes sent to the personal devices of guests. Small, private seating will also be available. Some restaurants are also looking at expanding outdoor dining. The number of employees checking in on tables will be reduced for safety; however, customers can still expect high-level hospitality, Henry said. Consumer desire to dine out again will likely depend on each market, Henry added. Some franchise restaurants that have reopened have reported evenings where they’ve reached their 50% seating capacity. Even with dining rooms reopening, Henry said the company still plans to continue delivery through multiple third-party providers and online ordering, which the company recently rolled out. “Off premise may stay fairly strong for awhile,” the CEO said. Total revenues for the quarter decreased 9.4% to $108.5 million. Net loss of $3.8 million, compared to net income of $13.9 million the first quarter of 2019. Same-store sales at company stores decreased 13.5% in the first quarter. The company has more than 150 Ruth’s Chris Steak House locations around the world. – Source: NRN.

The Pandemic has Cost Restaurants 5.9 Million Jobs

The industry lost three decades’ worth of employees in just six weeks as states closed dining rooms and restaurants closed their doors and laid off workers. The global pandemic and state closures of dine-in service have cost the restaurant industry 5.9 million jobs, wiping out three decades’ worth of employees in just over six weeks, according to new federal data released Friday. The industry lost 5.5 million jobs in April, and newly revised numbers from March show restaurants lost 500,000 employees, the vast majority of them during the last two weeks of the month. The numbers show the first true picture of the devastation that hit the industry. About one in four jobs lost during those two months was at a restaurant. Overall, the economy lost 20.5 million jobs in April, and the unemployment rate skyrocketed to 14.7%. Restaurants now employ half the number they did two months ago, meaning the pandemic has sent employment levels in the industry to where they were in the late 1980s. That devastation hit just about every type of restaurant, from small local diners to giant chains. It also includes everybody from high-end operators such as Union Square Hospitality Group, which temporarily closed its doors and furloughed workers in March, to franchisees of fast-food chains such as Burger King that reduced in-store headcount. Companies such Logan’s Roadhouse owner CraftWorks, operating out of bankruptcy, laid off thousands.

Franchisors such as Auntie Anne’s parent company Focus Brands cut employees while The Cheesecake Factory furloughed 41,000 workers. Many of these furloughs are temporary, and restaurants are starting to bring at least some of them back as business has improved in recent weeks. Shake Shack, which laid off more than 1,000 people last month, said this week it has started bringing some of them back. Others have started rehiring workers after receiving Paycheck Protection Program loans designed specifically to get them to rehire workers. At the same time, however, some job losses are turning permanent. At the 97-unit Garden Fresh Restaurants, owner of the salad bar chains Souplantation and Sweet Tomatoes, a temporary closure in March likely became permanent this month. The company says it will likely file for bankruptcy protection and sees no way to reopen stores under current regulations. It employs 4,400, many of whom count their tenure in decades. “We have the highest number of highly tenured employees of any place I’ve been,” CEO John Haywood said in an interview. “We have many 15-20-25-year employees.” Likely thousands of independent and local restaurants will not reopen. Numerous local restaurants have publicly said they are closed for good, seeing no way they can open their doors under restrictions forced by local governments to stop the coronavirus. At the same time, companies that service the restaurant industry, faced with a sudden, steep decline in demand as establishments close their doors, have also cut workers, likely feeding into the 20.5 million job decline in April. Distributors such as Sysco and Performance Food Group have furloughed workers, while companies such as Sysco and the point-of-sale provider Toast also laid off employees. Employees who lost their jobs hold out hope that the industry can emerge from this period and start rehiring again. “People in this industry work very hard,” said Kevin Armantrout, who lost his job as CEO of the two-unit Lucy’s Retired Surfers Bar & Restaurant, along with all his employees, when the owner shuttered it in March. “It’s a very unique club to work through the trenches. You have to keep telling yourself this is temporary. “There will be hard times—let’s face it—for a lot of people.” – Source: Restaurant Business.

Here’s Why Restaurants Reopening could be Good News for Summer Jobs

It’s a sharp contrast from trends in recent months. Prior to the pandemic, a historically tight labor market was pushing employers to get creative to find and keep talent. But if restaurants are able to win back customers, the summer jobs could follow. One in six restaurant businesses operate on a seasonal basis, and they depend on that revenue to stay afloat during the off season. At the moment, many restaurants have turned largely to carryout, curbside pickup and delivery to make up for lost dollars. “What you’re seeing with a lot of restaurants is certainly an increased focus on takeout and delivery. It’s a good way for us to try to get some revenue into the door, allow us to keep the lights on a little bit longer,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association. “The biggest challenge right now is whether or not restaurants are going to be able to open under these circumstances,” he said. “We’re dealing with social distancing, different states are approaching different timelines for when to reopen. And we’re really not sure whether that consumer demand is going to be there that’s going to allow us bring 500,000 people on to our restaurants this summer.” The latest data from the NPD Group shows restaurant trends improving somewhat in recent weeks. Through April 26, U.S. restaurant chain transactions were down 32%, compared to a 36% decline the prior week. The market researcher projects some 300,000-plus restaurants will potentially reopen for on premise dining in the next two weeks, which will help industry volume, but won’t return to full capacity due to social distancing guidelines. “Government relief payments and overall improvement in consumer spending most likely contributed to the easing of transaction declines,” David Portalatin, NPD food industry advisor, said in a statement. “Looking to next week, we might anticipate the upward trend continuing as restaurants begin to reopen their dining rooms.” Continuation of that upward trend is something entrepreneur David Barr is hopeful will happen this summer. Barr is a franchisee and franchisor in a wide swath of businesses ranging from Yum Brands Taco Bell and KFC restaurants to TITLE Boxing Gyms and Lash Studios. His restaurants right now are focusing on carryout and drive-thru business. Typically he sees a 5% boost in business during the summer months and has turned to teen hiring in recent years as the labor market has gotten tighter. Right now, it’s not labor market competition, but enhanced unemployment that is making hiring challenging. “We would expect this summer for our fast food restaurants to be fairly robust in hiring. We believe economic stimulus will be full in effect and that people will want to be out,” Barr said. “Our biggest competitor for talent is no longer the fast food [restaurant] or other shops across the street, it’s the unemployment bureau. With the $600 additional unemployment, we find that its very difficult to find talent — we hope that in July that will open up.” Mya Brooks, 16, just got hired at one of Barr’s KFC locations in Auburn, Alabama. Brooks said this is her first summer job, and while she’s typically focused on playing travel basketball and her studies, the change in schedules this spring has allowed for her to pick up work, something she plans to continue to focus on this summer. “I like to be there for my community any way I can,” Brooks said, adding that working through the coronavirus pandemic has allowed her to step in and help during a time when people might be uneasy. The National Restaurant Association’s Kennedy said that if restaurants are operational this summer and customer demand follows suit, the jobs will be there for teen and seasonal workers like Brooks. “If states allow us to reopen, if we can find a way to get the customers back in the door, that’s when we see teenagers being hired the summer,” he said. – Source: CNBC.

sanitation

Federal Targets for Reducing Foodborne Illness won’t be Met, CDC says

A review of Foodborne Diseases Active Surveillance Network (FoodNet) data for 2019 found that, compared with the previous three years, the incidence of infections caused by foodborne pathogens increased for Campylobacter, Cyclospora, STEC, Vibrio, Yersinia, while incidence of infections was unchanged for Listeria, Salmonella and Shigella. FoodNet identified 25,866 cases of infection, 6,164 hospitalizations, and 122 deaths in 2019. The overall incidence per 100,000 population was highest for Campylobacter (19.5), followed by Salmonella (17.1), STEC (6.3), Shigella (4.8), Cyclospora (1.5), Yersinia (1.4), Vibrio (0.9), and Listeria (0.3). “Serotype Enteritidis has been the most common cause of Salmonella infections at FoodNet sites since 2007 and incidence has not decreased,” the report said. “Eggs were the major source of Enteritidis infections in the 1980s. Chicken was recognized as another important source during the late 1990s. “Infantis moved from the ninth most common Salmonella serotype among infected persons during 1996–1998 to the sixth most common in 2019. Many infections are now caused by a new, highly resistant strain found in chicken.” The CDC noted that laboratory diagnosed non-O157 STEC infections continue to increase, although STEC O157 infections appear to be decreasing. Outbreaks have been linked to leafy greens. Produce also is a significant source for Cyclospora, Listeria, and Salmonella, the report said. However, the incidence of some Salmonella serotypes has declined. Typhimurium moved from the most common serotype during 1996–1998 to the third most common in 2019, and Salmonella Heidelberg is no longer among the top 20. “These decreases might be partly related to the widespread practice of vaccinating chickens against Typhimurium, which shares antigens with Heidelberg,” the CDC said. “This observation, combined with a marked decline in Enteritidis infections in the United Kingdom after implementation of widespread chicken vaccination and improved farm hygiene, suggests that targeting other serotypes through poultry vaccination could be one way to reduce human illnesses in the United States.” Furthermore, the data shows that the United States will not meet foodborne illness reduction targets established 10 years ago with the launch of Healthy People 2020, which is a national agenda of the US Department of Health and Human Services aimed at improving public health and preventing disease.

Food safety objectives HHS had hoped to achieve by 2020 include:

increasing the proportion of consumers who follow key food safety practices;

reducing the number of outbreak-associated infections due to Shiga toxin-producing E. coli O157, or Campylobacter, Listeria, or Salmonella associated with food commodity groups; and increasing the proportion of fast-food and full-service restaurants that follow food safety practices that prevent foodborne illness outbreaks, among other goals.

“The landscape of foodborne disease continues to change, as do the methods to determine the incidence and sources of these infections,” the CDC said. “FoodNet surveillance data indicate that progress in controlling major foodborne pathogens in the United States has stalled. “To better protect the public and achieve forthcoming Healthy People 2030 foodborne disease reduction goals, more widespread implementation of known prevention measures and new strategies that target particular pathogens and serotypes are needed.” The CDC noted that the increase in incidence is likely due to increased use of tests that identify previously unrecognized infections along with changes in ordering practices and varying test sensitivities and specificities might also contribute to the increase in incidence. Also, access to health services and individuals seeking care may have changed. Finally, year-to-year changes in incidence might not reflect sustained trends. Source: The Centers for Disease Control and Prevention.

FDA Addresses Food Safety During and After Pandemic

Government and industry are working to ensure the safety of the US food supply remains strong during the coronavirus (COVID-19) pandemic even as the Food and Drug Administration (FDA) has been forced to curtail certain inspections and other activities for the duration, Frank Yiannas, the FDA’s deputy commissioner for food policy and response, asserted in an interview published by the agency April 16. Mr. Yiannas outlined changes to FDA inspection activities during the pandemic, the importance of industry carrying out its responsibilities under the Food Safety Modernization Act (FSMA) and how lessons learned during the pandemic may shape the approach of both the agency and industry to ensuring the safety of the food supply in the future. “For the time being, we are not doing in-person routine surveillance inspections of farms and food facilities in this country and others that export foods to the United States,” Mr. Yiannas confirmed. “We are doing this to limit exposure to the virus and out of concern for the safety of FDA investigators, state investigators and workers in these farms and facilities as people all over the world are sheltering in place.” Mr. Yiannas said the FDA is still conducting critical inspections when needed. “Such inspections could be necessitated by natural disasters, outbreaks of food illness, Class 1 recalls and, in some cases, inspections of firms with a poor track record when it comes to food safety,” he said.

With regard to imported foods, product examinations at the ports of entry continue as informed by the use of PREDICT, the FDA’s risk-based import screening tool. The FDA also is conducting a limited number of remote inspections involving the electronic submission of records by importers covered by the Foreign Supplier Verification Program requirements. “We are prioritizing importers of food from foreign suppliers whose onsite food facility or farm inspections have been postponed due to COVID-19,” Mr. Yiannas said. But most important, Mr. Yiannas pointed to the responsibilities of industry under FSMA, which changed the paradigm on food safety to prevention from detection. “FDA-regulated facilities are required to have preventive controls in place each and every day to ensure that the foods they produce are safe,” Mr. Yiannas said. “Industry has the primary responsibility to ensure that the foods they produce are safe, and, by and large, they’re doing an amazing job at providing safe and available food to consumers. Clearly, at this critical time, food safety is as important as it has ever been, and we expect food producers to redouble their food safety efforts.” Asked about the status of the FDA’s forward-looking New Era of Smarter Food Safety initiative, Mr. Yiannas said, “We had planned to publish the New Era of Smarter Food Safety blueprint in March but had to shift our efforts to pandemic response.” The New Era initiative announced last year aims to create a more digital, traceable and safer food system by leveraging new technologies, analytical tools and approaches to keep pace with the rapid changes underway in the production and distribution of food. “We have been working behind the scenes on the framework that will support this work going forward and will publish the blueprint when the time is right,” Mr. Yiannas said. “But the issues and challenges we’ve seen in our pandemic response has shown me how timely this work is and how valuable it will be in the future. “For example, part of the New Era work involves dealing with the reality of e-commerce as more and more consumers order foods online that are delivered right to their door. “We have been considering what steps we need to take to ensure the safety of those foods in how they are produced, packaged and transported. When we first started talking about this, we were anticipating that 20% of groceries would be ordered online by 2023. That benchmark may have been blown out of the water by consumers sheltering in place. I don’t see that trend reversing when the crisis has passed.” Another core element of the New Era initiative is to foster and support food safety cultures on farms and in food facilities. “We do not believe we will make dramatic improvements in reducing the burden of foodborne disease without addressing how employees think about food safety and how they demonstrate a commitment to this goal in how they do their jobs,” Mr. Yiannas said. “It’s clear to me that a food safety culture is also one that protects the employees from risks associated with workers who are sick, regardless of the type of virus or bacteria, and supports the maintenance of clean and sanitized facilities.” – Source: Food Business News.

Industries Adjust to Deliver Food During Pandemic

The food industry, in addition to President Donald Trump and others, have stressed that food supplies are adequate during the coronavirus (COVID-19) pandemic. But getting those supplies where they need to be has proven to be a challenge as buying patterns shift and “panic” buying creates temporary shortages of certain grocery staples. While all modes of transportation have been affected, trucking is the most critical for the “last mile” — getting products to the final retail destination. Both the government and private business have stepped up to help ease the logistics challenge. The US Department of Transportation’s Federal Motor Carrier Safety Administration (FMCSA) for the first time ever declared a national emergency to provide hours-of-service regulatory relief to commercial vehicle drivers moving “emergency relief” in response to COVID-19. While the declaration primarily covered medical supplies and equipment and medical personnel, it also included “food for emergency restocking of stores.” The Department of Homeland Security on March 23 clarified that in addition to truck drivers, essential workers included those supporting the transport of emergency goods (including food) such as dispatchers, mechanics, truck stop and rest area workers and “employees of firms providing services that enable logistics operations, including cooling, storing, packaging and distributing products for wholesale or retail sale or use.”

Cross-border truck traffic was deemed essential, exempting trucks from temporary partial border closings between the United States, Canada and Mexico. Further actions by the FMCSA and other state and federal government agencies related to trucking have included temporary waivers for commercial vehicle drivers to renew expired licenses and medical certificates, relaxed truck weight and dimensional restrictions and ensuring truck stops with adequate parking are open and available along the interstate highway system, among others. It has been generally accepted that bare shelves in grocery stores are demand driven and not a supply issue. “Recent empty shelves are a result of ‘pantry stocking and preparedness’ and it is advisable to prepare for a week of food supplies, versus a month,” said Robb MacKie, president and chief executive officer of the American Bakers Association. “Despite the surge and because of the strength of the United States’ food system, the supply chain remains solid and transportation is moving food to consumers as quickly and safely as possible.” In a March 18 blog post, Chris Spear, president and CEO of the American Trucking Associations (ATA), wrote, “There is plenty of food, water, medicine, fuel and, yes, toilet paper, in our supply chain. The empty shelves temporarily seen are simply the result of surge demand as Americans rush to stock up. They’ve been quickly restocked as carriers and retailers adjust to the whims of the market.”

The ATA has adopted the motto “Keep Calm and Keep on Trucking” during the pandemic and has been actively working with state and national governments and law enforcement on its immediate priority of “maintaining the flow of interstate commerce and ensuring the continued movement of goods” through the trucking industry. To be sure, local and state travel restrictions have not included consumer visits to grocery stores. Even though much of America (and other countries) is working from home and restricting movement beyond the home, people still have to eat and are able to travel to get their food, or have it delivered from restaurants and grocery stores. But that doesn’t mean there hasn’t been challenged, both locally and globally. A key to keeping grocery shelves stocked has been boosting production and/or delivery to grocers of pandemic-hoarded items such as flour, pasta, eggs, milk and other items. While some grocery shelves have gone bare, food destined for restaurants, bars, schools and other institutions is backing up because of closings. Shifting food from institutions to groceries isn’t easy due to packaging, logistics routes and other challenges. As an example of cooperation between grocery and food service, C&S Wholesale Grocers, Inc., the largest wholesale grocery supply company in the United States, and US Foods Holding Corp., a leading food service distributor, said March 24 they had teamed up “to combat job and food insecurities amid the coronavirus pandemic’s impact on the supply chain.” “We are taking the steps necessary to onboard and train members of US Foods’ workforce to ensure our warehouses are staffed and deliveries are on the road, enabling families access to food across the country,” said Mike Duffy, CEO of C&S. The partnership will allow C&S to alleviate potential worker shortages from increased retail food demands, while transferring US Foods personnel to similar job functions where demand was lacking in the food service industry. “This partnership is an excellent example of the ways in which we are leveraging our distribution capabilities in new ways to support our nation’s retailers,” said Pietro Satriano, chairman and CEO of US Foods. That is just one example among many where food companies and distributors are hiring, redirecting or joining with other companies to adjust to changing needs caused by the pandemic. On a broader scope, shipping container availability is a significant concern, mainly because of reduced trade between China and the United States, and with the rest of the world. The availability of cargo containers at the US ports in Long Beach and Los Angeles and the European ports of Hamburg, Rotterdam and Antwerp was the lowest on record, according to a Bloomberg report. The two US ports typically have 35% of the containers coming into the United States, the report said, but imports to both fell about 13% in January and February. Meanwhile, outbound container shipments from Shanghai in February dropped 25% from a year earlier. “West Coast port volume has plummeted as production in China was hit first by COVID-19,” the ATA said on its COVID-19 Update Hub. “With that cut in overseas production, sailing to and from China fell significantly.” It’s fully expected that as consumers adjust to staying home for the duration of the pandemic, and as restrictions begin to be lifted, there may be a negative impact on grocery demand as people work through their well-stocked pantries and freezers. Anecdotal reports already indicate a slowdown in buying and better stocked shelves in states that were the first to implement restrictions, while the situation continues to escalate in other areas that imposed restrictions more recently. The same would be expected for international shipping, largely as conditions relax in China. – Source: Food Business News.

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