The Middleby Corporation announced the acquisition of Zhuhai Guangdong China-based United Foodservice Equipment Group . . . .

Middleby Acquires United Foodservice

The company is a leader in the design, manufacture, and supply of countertop commercial foodservice equipment with recent annual revenues of approximately $10 million. “This strategic acquisition expands our capabilities in a key global location and high-demand market. We expect continued growth in Asia and this acquisition strengthens our capabilities to best serve customers in this region and worldwide,” said Tim FitzGerald, Middleby CEO. “United brings an existing, well-known line of cooking equipment along with well-established design and manufacturing capabilities to Middleby. This complements our existing footprint while broadening our offerings in targeted growth markets.” “We are excited to launch the recognized product line and respected brands of United through our Middleby partner channels in China,” said George Koether, Middleby Group President, East Asia, and China. “This addition allows us to immediately expand our offerings in China, while also accelerating new product introductions into this receptive market.” United has been designing and manufacturing countertop commercial foodservice equipment since 2001 under the brand name Thor. More information about the company can be found at www.unitedfoodserviceequipment.com

The Middleby Corporation announced the acquisition of Wild Goose Filling, a leader in the design, manufacture, and service of specialty liquid filling systems and highly-engineered food and beverage packaging equipment, based in Louisville, Colorado . . . .

Middleby Acquires Wild Goose Filling

The company brands are Wild Goose, Inline Filling Systems, and Meheen which together generate $35 million in annual revenues. “Wild Goose Filling is the domestic market leader in craft beverage filling and canning. The company has industry-leading technology serving the fast-growing craft beverage market which includes beer, seltzer, cold brew, and kombucha, and is also well-positioned in other attractive niche markets,” said Tim FitzGerald, Middleby CEO. “Middleby can now offer a complete equipment solution to our craft beverage customers when paired with existing brands Ss Brewtech and Deutsche.”  Wild Goose Filling is known for innovating an advanced canning process that allows customers to minimize installation, set up, and training costs while delivering a superior quality can integrity. The company has also designed innovative solutions to minimize dissolved oxygen in beverages and their solutions have given rise to the mobile canning industry. Research shows current markets trends are moving from bottled to canned beverages. Inline Filling Systems, a brand of Wild Goose Filling and based in Venice, Fla., engineers complete liquid and food filling lines consisting of filling, capping, and labeling equipment. The Wild Goose and Meheen brand beverage filling technology facilities are in Louisville, Colorado. More information on the company can be found at wildgoosefilling.com and fillers.com.

Contactless payment began testing at Buffalo Wild Wings in September, while an order-ahead platform will be launched at Arby’s in 2021 . . . .

Inspire Brands Chief Information Officer Raghu Sagi on New Technology Innovations at Buffalo Wild Wings, Arby’s

Throughout the pandemic, Inspire Brands began rolling out new technologies to help ease digital customer convenience, from contactless payment which began testing at Buffalo Wild Wings in September, to an order-ahead platform with mobile app capabilities, which will roll out to all Arby’s restaurants in the first quarter of 2021 after a pilot test, which began in November.  As these new technology capabilities are introduced, one of the biggest challenges, Inspire Brands chief information officer Raghu Sagi said, is figuring out which technology investments are the best fit for which of their now-seven brands (with the recent acquisition of Dunkin’ and Baskin-Robbins). “For example, we already have a strong, robust app for Buffalo Wild Wings and Sonic too,” Sagi told Nation’s Restaurant News. “The way we look at it is, ‘what are we learning from our other brands?’ And we’ll introduce some of those features, but the app has to be unique to what Arby’s guests would need. Then eventually, the platform will be able to support all of these features for all of the brands along the way.” Over the past four months, Inspire Brands has developed the pilot test of Arby’s order-ahead platform which will be added to their mobile app in 2021. The order-ahead features started a pilot at 10-12 restaurants in November. One of the most important aspects of the order-ahead feature, Sagi said, is its personalization capabilities based on customer data. “That is what allows us to be able to give, based upon the user’s order history and their preferences, personalized orders, recommendations, and menu suggestions,” Sagi said. “Reaching the guest wherever they are and providing the best guest experience is a fundamental premise of how we think about personalized technology.” Buffalo Wild Wings, meanwhile, began piloting their contactless payment program over the summer, and it’s currently available in 30 bars in the Atlanta and Minneapolis regions. Eventually, contactless payment will be integrated with their app and rolled out nationally, though Sagi did not have a timeline on when that will happen. Guests can access contactless payment inside the restaurant, either through a link via SMS or by scanning the QR code on their receipt. Sagi aid they have found that the text message option is the most popular among guests since it offers the most convenient experience with the least contact. “Guests have told us they like that they now don’t have to wait in line to pay, so that’s just one more use case from this technology,” Sagi said. Sagi added that with these new technology capabilities, they will begin building a “multi-tenant platform” for all of the Inspire Brands. However, he would not extrapolate on the latest technological advancements or integration capabilities coming to Sonic Drive-In, Jimmy John’s, Rusty Taco, Dunkin’, or Baskin-Robbins. Inspire Brands is the second-largest foodservice company in the U.S. by locations and sales, totaling nearly 32,000 restaurants in 60 countries globally, with $26 billion in sales. – Source: NRN.

Even before the coronavirus pandemic, the rapid growth of restaurant delivery ignited industry chatter about ghost kitchens as brands considered more efficient and cost-effective ways to serve their patrons . . . .

Restaurants Adapt to Covid with Virtual Locations and Off-Premise Services

Legacy pizza chains have done off-premise right for decades, from proper food preservation to a brand-friendly last-mile experience. In our current reality, the rest of the industry is in a quick rush to catch up and adapt to optimize their brand experience from end to end. In addition, as Americans continue to dine at home for the foreseeable future, and with tighter dining restrictions in place for the colder months ahead, restaurants are looking at ghost kitchens as one possible solution for reduced customer traffic. However, ghost kitchens are new terrain for restaurants and must be approached in a new way. To thrive, restaurants must rethink previous ways of operating that are no longer efficient in this new environment, which has become more reliant on off-premise than ever before.

Third-party delivery is still not the way

Restaurant delivery has experienced a massive spike in spending because of Covid-19. Many (or most) operators across the country are sharing their profits — along with their customer data and brand reputation — with third-party delivery platforms. Restaurants, whether a ghost kitchen or not, can benefit from the delivery boom even further by forgoing their partnerships with third parties and implementing native delivery. Since third-party delivery platforms entered the market, they have created challenges for restaurants, from unwarranted customer complaints to unfair billing practices. Particularly for ghost kitchens, whose only point of contact with the consumer comes during the last-mile interaction, brands should be encouraged to use their own staff to deliver the brand experience and of course, product. A major challenge facing restaurants today is maintaining the integrity of food not naturally meant to be consumed off-site, so it pays to have trained employees with the right equipment making that last-mile trip.

Promoting a ghost

An obvious concern facing new ghost kitchen operators is how to market a virtual brand. Established brick-and-mortar restaurants that already have an online or virtual presence have a leg up in this regard, but newcomers shouldn’t be discouraged. Establishing a strong omnichannel presence that allows potential customers to discover and engage with your brand on their computer, phone, or tablet can make all the difference in virtual restaurant exposure. Another important marketing consideration facing virtual restaurants, whether new or established, is their reliance on third-party delivery platforms. While these services provide restaurants with exposure to delivery aficionados through popular smartphone apps, brands should be encouraged to own their digital marketplace instead of relying on third-party players. When brands make the choice to establish and grow their digital presence, they will be equipped to connect directly with consumers, own their customer data, and use those insights to better understand and reach their patrons.

Rethinking human capital management

The pandemic has displaced many food service employees who previously had worked in-house, even as restaurants continue to rely on third-party drivers to power their delivery services. The upside to leveraging drivers from these platforms is that operators don’t need to deal with the costly challenge of turnover, but the downsides of these partnerships are vital to consider. To avoid toxic turnover and the use of third-party delivery drivers, ghost kitchen operators should rethink how they approach human capital management and embrace employer status. By making the restaurant or ghost kitchen staff direct employees and repurposing them to fill different roles based on customer demand, operators will not need to lay off staff and will have happier, more loyal employees as result. And operators will be liberated from the many challenges (and costs) that come with third-party delivery partnerships. Virtual restaurants will reshape the country’s dining economy. Only those who hop on the trend quickly and strategically will reap the rewards of this booming new opportunity. Antiquated approaches that restaurant operators previously took regarding marketing, delivery and human capital will not work in a ghost kitchen. Instead, brands entering the space, whether new or old, can adopt new strategies to make their ghost kitchen thrive. Scott Absher is CEO and Co-Founder of ShiftPixy, an on-demand staffing platform for part-time workers. In August 2020, the company launched a ghost kitchen incubator. – Source: Franchising.com

More PPP and tax breaks, but no direct aid for the industry . . . .

Independent Restaurants: New $900 Billion Stimulus ‘Falls Woefully Short’

Sunday’s news lawmakers reached a final deal to distribute a fresh $900 billion COVID-19 relief package was met with trepidation by at least one corner of the restaurant industry. The Independent Restaurant Coalition, formed by chefs and independent restaurant owners, said in a statement the bill “falls woefully short of giving 11 million independent restaurant workers the job security they need before the holidays.” “Congress understands that dining restrictions, a surging pandemic, and winter weather are a perfect storm for a restaurant employment crisis that is disproportionately impacting single mothers, people of color, immigrants, the formerly incarcerated, and young people,” the IRC said. “When we’ve been asked by the government to change the way we do business, our elected officials need to help us stay in business. It’s clear Congress wants to help us and we gave them a plan to do that. This legislation isn’t it.” The bill does appear to answer some of the restaurants’ requests. Roughly $280 billion is expected to go toward another round of the Paycheck Protection Program, which makes up most of the $325 billion slated for small businesses. However, there’s no direct restaurant aid. Theater operators and owners of small performance venues are eligible for $15 billion in grants, while airline payroll support can access another $15 billion. Schools are set to receive $82 billion; child care $19 billion. With the PPP in particular, provisions, per early reports, will allow loan recipients to deduct certain payments made with funds from taxable incomes. In the previous PPP, restaurants lamented a ruling that left operators liable for tax charges. Because of an Internal Revenue Service decision made weeks after restaurants started accepting PPP loans, normally deductible business expenses were no longer deductible if the business paid the expense with a PPP loan that was subsequently forgiven. Here’s more on that previous dilemma. Also to note, an August report from the U.S. Small Business Administration showed the “Accommodation and Food Services” sector received just 8.1 percent of PPP dollars. “The small changes to PPP funding for independent restaurants will buy time for Congress to negotiate a more robust plan, and we are grateful to many champions in the House and Senate who fought for those changes,” the IRC said. “But make no mistake: independent restaurants and bars will continue to close without additional relief this winter, leaving millions more out of work.”

Some other key elements to consider:

President Donald Trump and the White House appear to have won a tax break where businesses can deduct restaurant meals. Some lawmakers previously pushed back against the notion, saying it would encourage in-restaurant dining and help spread COVID-19. Full write-offs inside of the current 50 percent limit will now be allowed. Sen. Tim Scott (R., S.C.) said the deductions would lead to more spending in restaurants. It’s expected to extend other tax breaks set to expire by January, including five-year extensions of tax credits for investing in low-income areas and hiring workers from disadvantaged groups. Sunday’s agreement would continue a tax credit for retaining employees and make it available to PPP recipients. Beer, wine, and spirit makers are looking at tax relief, too. They were prepared for excise tax increases starting in 2021 but will now see the lower tax rates in place since 2018 extended indefinitely The deal is expected to provide $300 a week in enhanced federal unemployment benefits for 11 weeks and extend two other unemployment programs until mid-March and early April. The latter expands the pool of people eligible for unemployment benefits and extend their duration. The $300 figure is half the $600 benefit in the CARES Act. This proved both a boon and a challenge for operators the last time around. Up until July 31, between 25–30 million Americans received the Federal Pandemic Unemployment Compensation boost as part of the CARES Act. According to The NPD Group, this translated to $15–$18 billion per week put into consumers’ bank accounts. For context, total restaurant industry sales at that point were a bit less than $8 billion per week, David Portalatin, NPD food industry advisor and author of Eating Patterns in America, said. Yet it also challenged the hiring process given restaurant workers were likely making more not working. UI benefits under the structure came in at a minimum of 160 percent of typical wage for minimum workers, and as much as 270 percent in some states. The new agreement did not include a provision requested by restaurant lobbyists to protect operators from liability lawsuits related to protecting employees and guests.  Meanwhile, the IRC continues to push for the RESTAURANTS Act, although Sunday’s long-awaited deal, which includes $600 in direct payments to qualified citizens, suggests it could be swimming upstream at this point. The Act is cosponsored by 53 members of the Senate from both parties and passed the house in October. More than 34,000 people from the restaurant community signed an open letter to Congress in the last two weeks urging action. “We did our part, and it’s time Congress does theirs,” the IRC said. “Congress must return in January with a renewed commitment to the thousands of people working in independent restaurants in their communities who will lose their jobs in 2021 without swift action on the RESTAURANTS Act.” The Act would establish a $120 billion Restaurant Revitalization Fund run through the U.S. Treasury, not through participating banks like PPP. Independent restaurants and bars would be eligible for grant amounts based on the difference between their revenues in 2019 and 2020. These grants can only be applied to eligible expenses including payroll, rent, supplies, PPE, and debt incurred during the pandemic. “Ten months into the pandemic, when countless restaurants and jobs have been lost, and indoor dining has again been shut in New York City, it’s shameful that the federal government again failed to enact the bipartisan RESTAURANTS Act, which would provide structured support to save these small businesses that have been uniquely devastated by COVID-19,” said Andrew Rigie, executive director of the NYC Hospitality Alliance, in a statement. “Although the agreed-upon stimulus includes the important Save Our Stages Act, another round of the Paycheck Protection Program is merely a Band-Aid on a cannon wound. It is better than nothing, yet still a disgrace. We thank Senator Schumer and the New York State Congressional Delegation for fighting hard for our industry, but clearly, the crisis is far from over, and we’ll continue to advocate for comprehensive federal support to save restaurants, bars, and jobs.” According to the Bureau of Labor Statistics’ November employment report, food and drinking places lost 17,400 jobs in November and are still down more than 2.1 million jobs from pre-pandemic levels—more than any other industry. November marked the first net loss of jobs for the industry since April, a byproduct of recently renewed restrictions stemming from increased cases. Unemployment in “leisure and hospitality” remains 134 percent higher than the national average. Senate Majority Leader Mitch McConnell (R., Ky.) said Sunday all outstanding issues were settled and the country “at long last” has the “bipartisan breakthrough” it’s needed. “Now we need to promptly finalize the text, avoid any last-minute obstacles and cooperate to move this legislation through both chambers,” he said. The National Restaurant Association said in a statement Monday the package includes “unique provisions aimed to assist the restaurant industry, which continues to endure unparalleled job and revenue losses.” Provisions the Association sought that were included: the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit (ERTC), an extension of the augmented Work Opportunity Tax Credit (WOTC), and increased tax deduction for business meals. “The action taken by Congress today will keep tens of thousands of restaurants from closing in the coming months,” Tom Bené, president and CEO of the Association, said in a statement. “A second round of PPP, combined with unique enhancements for the restaurant sector, will provide critical access to capital. Restaurant operators and their employees are dedicated to serving their communities, and today’s bipartisan agreement will give them the opportunity to do that through the holidays. However, the long-term economic challenges facing independent, franchise, and chain restaurants will not end with the new year, and we will continue to press federal and state leaders for the support that will put us on the road to recovery.” Added Sean Kennedy, EVP of public affairs. “Restaurants have waited months for a comprehensive relief bill that reflects the magnitude of this crisis. Today’s bipartisan action is a ‘down payment’ that recognizes the unique damage the pandemic is inflicting on our industry. Congress heard from us and hundreds of thousands of our restaurant members about basic steps to improve PPP for our industry—and they listened. We appreciate Senate and House Leadership, key committee chairs and ranking members, and the group of moderates, each of whom played a critical role in this process. There is much more to be accomplished, and we will continue to press in 2021 at the federal, state, and local level on behalf of the industry, our employees, and our customers.” Congress passed a 24-hour extension of government funding Sunday evening, meaning votes on the relief agreement and a broader spending bill should occur Monday. The direct checks are expected to run $600 per adult and $600 per child. In the CARES Act, the numbers were $1,200 and $500, respectively. The amounts are set to decrease for individuals with more than $75,000 in income and $150,000 for couples. Dependents over the age of 16 are not expected to qualify—same as the first stimulus. So households with college students or disabled adults won’t get additional payments. Additionally, the deal includes $25 billion in recent assistance and extends a moratorium on evictions. It also approves $13 billion for food-stamp and child-nutrition benefits. There’s $30 billion to help distribute the vaccine and $22 billion for COVID-19 testing and tracing as well. Businesses that provide paid leave can access $1.8 billion in tax credits, too. – Source: fsr magazine.

His tenure lasted two and half years . . . .

Applebee’s, IHOP CFO Thomas Song Resigns

Applebee’s and IHOP parent Dine Brands announced Tuesday that Thomas Song resigned as CFO. The move is effective January 22. The move marks another leadership shakeup for the company, which announced in May that CEO Stephen Joyce’s contract wouldn’t be renewed on February 1. In November, the brand hired John Peyton, CEO, and president of Realogy Franchise Group, as its new leader. His tenure will start on January 4. Joyce will remain employed as a non-executive special adviser until February 16. Allison Hall, vice president, and corporate controller, will serve as interim CFO. Dine Brands said in a filing that Song is leaving to accept a position outside the restaurant industry. He joined the company in May 2018 after serving five years as senior vice president of corporate development and innovation at Choice Hotels International. Joyce was the former CEO of the hotel company. In Q3, Applebee’s saw the same-store sales drop 13.3 percent, with steady improvements each month—negative 18.4 percent in July, negative 15.2 percent in August, and negative 7.4 percent in September. IHOP’s comps sank 30.2 percent in Q3 after a 59.1 percent plummet in Q2. The breakfast chain is expected to shutter a net of fewer than 100 stores in the coming months while Applebee’s plans to close between zero and 10 units. As of September 30, Applebee’s had 1,728 total restaurants (1,659 domestic). IHOP had 1,823 (1,666 franchise). At that time a year ago, the numbers were 1,804 and 1,828, respectively. – Source: fsr magazine.

Walk-On’s, a leading full-service family sports bar that provides gourmet takes on game day favorites, has announced a new partnership with Aramark . . . .

Walk-On’s to Open First Non-Traditional Location on Purdue’s Campus

Walk-On’s will anchor the all-new “Purdue Marketplace” set to enhance dining offerings for Purdue’s West Lafayette campus and community. Construction of this new, world-class food hall in the Purdue Memorial Union began this fall and is anticipated to be completed in January of 2022. The 4,800-plus square foot Walk-On’s will feature a condensed menu with fan favorites including Bayou Pasta, Boom Boom Shrimp PoBoys, and Cajundillas, in addition to upscale takes on Louisiana mainstays – such as Crawfish Two Ways, Mardi Gras Mahi, and Duck and Andouille Gumbo. In addition to full-service dining, students and community members will be able to take advantage of a ‘grab and go’ option to appeal to busy lifestyles. For added convenience, students will be able to leverage Purdue’s Dining Dollars and all-new value-driven retail dining memberships. The restaurant will also include a full bar featuring a variety of options sourced from local breweries. Purdue Marketplace will also host several QSR concepts in addition to Walk-On’s as the full-service anchor. “We’re excited about the strong growth opportunity of the non-traditional sector where a premium is placed on convenience, speed, quality, and value,” says Walk-On’s President & COO, Scott Taylor. “Our brand has always been about creativity and adaptability – we place a huge value on innovation and are a nimble brand that works with partners on custom build-outs and menu offerings to meet their needs and the needs of the customers they serve. This first non-traditional unit marks an exciting chapter in our ongoing development efforts as we make our food and gameday experience more accessible than ever.” The Midwest holds special meaning for Walk-On’s co-owner Drew Brees who attended Purdue University and led the Boilermakers to a Big Ten Championship and Rose Bowl appearance. “This is such a humbling experience for me – being able to bring the great taste of Louisiana to my college campus as an alumnus,” says Brees. “From the education I received and playing for coach Joe Tiller, to the relationships I was able to form with many of my teammates and meeting my beautiful wife, I’m so thankful. Walk-On’s will be an incredible value-add and continue to strengthen a remarkable University.” “Purdue is ecstatic about Walk-On’s coming to our campus,” said Rob Wynkoop, Purdue Associate VP for Administrative Operations. He adds, “Walk-On’s will be an important key in our drive to activate this space. This will be a great gathering spot for students, employees and the entire West Lafayette community. And Drew Brees is involved…what more can we ask for!” This development announcement comes on the heels of a tremendously strong year for the brand – having just received a growth equity investment from 10 Point Capital while continuing strategic franchise development across the country. Walk-On’s has more than 40 locations open and operating, spanning nine states, with over 150 locations in development. Recent agreements confirm rapid expansion plans as Walk-On’s continues to target strategic franchise development in key markets throughout the Southeast and Midwest. Popular for being both the go-to place for game day and an eatery known for quality, scratch-made dishes, Walk-On’s has carved its own vertical to best support what fans love most. Whether it be for date night, girl’s-night-out, or a family dinner, Walk-On’s is the place for everyone – because everyone needs a little playing time. As the franchise has continued its explosive growth across the country, its strong track record has also garnered national recognition earning the #1 spot in Entrepreneur’s prestigious 2020 Top New Franchises Ranking. “We are looking forward to bringing this winning concept to the Purdue campus community,” says Jack Donovan, president, Aramark Higher Education. “Walk-On’s great food and fan favorites will enhance the overall dining and gameday experience.”  — Source: fsr magazine.

Darden CEO Gene Lee Named Chairman of the Board

The Darden Restaurants Board of Directors has elected Chief Executive Officer Eugene (Gene) I. Lee, Jr. as Chairman of the Board, succeeding Charles (Chuck) M. Sonsteby, effective January 4, 2021. Sonsteby will become the Board’s Lead Independent Director. “At a time of unprecedented change in our industry, the Board concluded that it is in the best interests of the Company to combine the roles of Chairman and CEO in order to drive the most efficient execution of its long-term strategy,” says Sonsteby. “Gene is an extraordinary leader with a passion for our business and team members resulting from decades of restaurant operating experience and successful executive leadership. He has delivered significant value for shareholders and we believe this is the right time for him to assume this role.” Lee became chief executive officer and a member of the board of directors in 2015. “I am honored to serve as the Chairman of the Board of Directors. I want to thank Chuck for his leadership and mentorship as Chairman. Strong independent leadership on the Board is important and I am confident that as the Lead Independent Director, Chuck will continue to provide strong leadership and oversight to Darden,” adds Lee. Additionally, Ricardo (Rick) Cardenas has been named President and Chief Operating Officer. Mr. Cardenas has served as Darden’s Chief Financial Officer since 2016. Prior to being named CFO, Cardenas served as Senior Vice President and Chief Strategy Officer. He began his career with Darden as an hourly employee in 1984, before joining the restaurant support center team in 1992 as an Auditor. From there he held increasingly more responsible positions including Director of Corporate Development, Director of Finance and Technology for Seasons 52, Vice President of Finance and Assistant Controller for Olive Garden, Senior Vice President of Finance and Controller for LongHorn Steakhouse, Senior Vice President of Finance and Controller for Red Lobster, and Executive Vice President of Operations for LongHorn Steakhouse. Finally, the Company has named Rajesh (Raj) Vennam to the role of Chief Financial Officer. Vennam began his career at Darden in 2003 as a Sr. Business Analyst for Market Development. He went on to work as a Sr. Financial Analyst in Investment Analysis, Olive Garden Marketing Analysis, and Treasury; and eventually as a Manager of Treasury prior to being promoted to Director of Financial Planning & Analysis for LongHorn in 2010. In 2013, Vennam joined Red Lobster as a Sr. Director and progressed to Senior Vice President of Financial Planning & Analysis and Treasury. He returned to Darden in 2016 as Senior Vice President, Finance & Analytics, assuming additional responsibilities as Treasurer in 2020. “The organizational changes announced today reflect our intention to provide Rick and Raj a diversity of experience while creating growth opportunities for them. Rick has been a strong partner over the past five years and this role will provide him the opportunity to oversee new areas of the business while broadening his influence across Darden,” says Lee. Lee continues, “Raj has done an exceptional job in his current role at Darden. His promotion to CFO recognizes his significant contributions and will allow him to broaden his responsibilities while assuming a more strategic role across Darden.” These organizational changes will take effect on January 4, 2021. – Source: fsr magazine.

Saladworks parent company acquires Garbanzo Mediterranean Fresh and Frutta Bowls to form Woworks

Centre Lane Partners – parent company of Conshohocken, Penn.-based salad chain Saladworks — has acquired fast-casual Mediterranean brand Garbanzo Mediterranean Fresh and fast-casual smoothie/bowl concept Frutta Bowls, to form a new holding company, Woworks, the company announced. The Saladworks team will be taking over both brands’ infrastructure and operations to drive growth. Garbanzo CEO James Park will stay on after the acquisition as a special advisor to the CEO. “Today, we welcome both Garbanzo Mediterranean Fresh and Frutta Bowls to the Woworks family,” Kelly Roddy, CEO of Saladworks and the new portfolio of brands within Woworks said in a statement. “Like Saladworks, we believe Garbanzo and Frutta Bowls are complementary brands — all sharing a core DNA based upon fresh, flavorful, and healthy food along with a heart for hospitality served through convenient business channels, which appeals to our Millennial family and Gen Z guests. We are excited to leverage the appeal of these unique and differentiated brands – along with the added size, scale, and shared resources – to benefit all stakeholders including our team members, guests, business partners, and communities.” Frutta Bowls is a 37-unit, Freehold, N.J.-based fast-casual concept known for its smoothies, bowls, and coffee. Garbanzo Mediterranean Fresh is a 25-location, Centennial, Colo.-based fast-casual brand known for its build-your-own pitas, bowls, salads, gyros, and laffas (wraps). “Garbanzo has a favorable path for growth post-pandemic and I’m looking forward to working alongside the new holding company Woworks to ensure a smooth transition,” Garbanzo CEO James Park said in a statement. “Our brand and franchisees will benefit from the tremendous new resources this team can bring to continue the growth and prosperity of Garbanzo.” Saladworks currently has 100 locations in 18 states across the U.S. and in Canada. This year, Saladworks expanded by 40 locations to new markets in Canada, California, Tennessee, Rhode Island, Ohio, Florida, and Indiana. Many of these new locations have been in what Saladworks calls “non-traditional presences,” from ghost kitchens and food trucks to grocery and retail. – Source: NRN.

From Dunkin’ and Inspire, to BurgerFi to FAT Brands and Johnny Rockets, restaurants continued to be bought and sold amid COVID . . . .

28 mergers and acquisitions in the restaurant industry in 2020

In addition to so many other things, 2020 brought one of the largest merger-and-acquisition deals in the restaurant space with the marriage of Dunkin’ Brands with multi-concept group Inspire Brands. We also saw a number of companies filing bankruptcy because of COVID, which resulted in a number of changes in ownership, particularly in the latter half of the year. Halfway through the year, when we did this gallery last, there were 12 M&A deals in the restaurant space. As of this report, there are 28 for the year, which is actually fewer than in 2019. The $11.3 billion Inspire/Dunkin’ deal was certainly the talk of the finance world. The deal was completed on Dec. 15. and now gives Inspire Brands an entrance into the breakfast segment, taking the Dunkin’ and Baskin-Robbins brands private. Another notable acquisition was the growing brand BurgerFi, which was acquired by OPES Acquisition Corp. and announced it would be begin being traded on the Nasdaq on Dec. 17 under the ticker BFI. The company was renamed BurgerFi International Inc. And this year wouldn’t be complete without speaking of third-party delivery companies. With demand for delivery spiking after restaurant dining rooms were closed across the country, Grubhub, Uber Eats, and Postmates jockeyed for position with consolidation. Grubhub was acquired by Just Eat Takeaway for $7.3 billion in June, and Uber purchased Postmates for $2.65 billion in July. DoorDash, meanwhile, became a publicly-traded company in December. – Source: NRN.

The charity founded by chef José Andrés feeds people in need—pandemic-related or otherwise—with help from essential apps, gadgets, and services . . . .

The tech that Keeps World Central Kitchen Cooking in Times of Disaster

Whatever business-travel problems you’ve encountered in the past, World Central Kitchen’s have almost certainly been worse. This Washington, D.C., nonprofit founded by chef José Andrés in 2010 has spent the past decade cooking for disaster survivors in some of the least convenient places on Earth. And since last winter, it’s had to deal with a pandemic that’s torn up social safety nets and left more people needing its help—in the organization’s home turf in the U.S. as well as in more remote destinations. Two executives with World Central Kitchen (a 2018 Fast Company Most innovative companies honoree) spared some time to talk about lessons they’ve learned about how technology can best keep their organization in gear. Like a lot of organizations, World Central Kitchen has moved much of its interoffice banter from email to Slack. That messaging app, soon to be bought by Salesforce for almost $28 billion, offers task-management tools above what most email clients offer. “It’s the actual search, reminders, forwarding, assigning,” says Erich Broksas, WCK’s chief strategy officer. “I think it makes things a lot better.” But for all its virtues, Slack is also among the first apps to get set aside when WCK team members arrive in an area that’s starved for robust connectivity. “Slack just takes up too much bandwidth,” Broksas says. Instead, the team relies on Facebook-owned WhatsApp. “It works really well in low-bandwidth environments,” says CEO Nate Mook, who notes that WhatsApp will heavily compress an image before sending, while Apple’s iMessage strives to preserve the full-quality version. Mook’s chief complaint with WhatsApp may sound familiar: its requirement that you add somebody to your WhatsApp contacts list before texting or calling: “You end up with these massive address books,” he says. WCK is now testing the encrypted, privacy optimized messaging app Signal. Mook credits the service’s recent feature upgrades as well as one enduring virtue: “It’s not owned by Facebook.” The pandemic, however, hasn’t been that much of an issue for WCK beyond greatly increasing the team’s time spent on Zoom. “Half the team is usually traveling and responding to a disaster,” Broksas says. “It was already natural for us to have a remote, disparate workforce.” WCK employs satellite connectivity less often than you might expect for an organization that routinely lands in areas that have been leveled by wildfires, hurricanes, or earthquakes. “What we generally see is that the reliance on our planet right now for cellular technologies means that it is almost universally the number-one priority to get up and running after a disaster,” Mook says.  Adds Broksas: “In the U.S., for the most part, it’s 48 hours before the cell connectivity comes back.”

During disasters such as 2019’s Hurricane Barry, technology has helped WCK deal with extreme disruptions to everyday life. [Photo: courtesy of World Central Kitchen]Because individual carriers may not bring up service equally rapidly, WCK uses unlocked phones that can switch from one service to another with a swap of a SIM card. Team members also often rely on an old-school hack: forcing their phones into 3G mode to avoid crowded 4G frequencies. But 5G may complicate that; for example, Apple’s new 5G iPhones only allow falling back to 4G. For that first day or two in the field when cellular may be a no-go, satellite remains a valuable but expensive option. “It kind of sucks,” Mook says, noting issues like its line-of-sight requirement and the potential for rain to interrupt the signal. “But it works in a pinch.” The organization is now testing the Iridium Go, a $999 hot spot that lets team members use their regular smartphones via a satellite connection. SpaceX’s growing Starlink constellation of low-Earth-orbit satellites also looks promising, but WCK hasn’t yet had a chance to test it. However, WCK is already skeptical over the disaster-recovery potential of Loon, Google’s balloon-hosted internet service. “By the time the balloon is up, we’re long gone,” Broksas says. Electricity continues to be WCK’s highest hurdle because transmission lines can’t be restored as fast as cell towers. So the organization has to bring its own current. Mook and Broksas tout the GoalZero Sherpa power bank, a $300 device that can recharge everything from a smartphone to a laptop and which can charge itself from GoalZero’s portable solar charges. But more often, they rely on traditional generators or power ports in vehicles. So as much as WCK might benefit from cutting-edge technology such as a field-deployable fuel cell, it would settle for quieter, less-polluting generators. Meanwhile, the demand for energy keeps going up. “The reality is, devices now pull so much more power than they used to,” Mook says. Moving meals in Washington, D.C., during the COVID-19 crisis [Photo: courtesy of World Central Kitchen]WCK continually adds new devices to its toolbox, a point Mook makes by picking up the box for a DJI Mini 2 drone, a $449 pocket-size quadcopter that records 4K video. “The controller is actually bigger than the actual drone itself,” he says, adding that WCK relies on drones to assess the situation on the ground and to document it for the rest of the world: “Drones give you a perspective to help clarify how catastrophic the situation is.” In December, the U.S. Commerce Department put DJI on its banned-entities list for allegedly enabling human-rights abuses. That may complicate WCK’s work even if it hasn’t yet stopped DJI from continuing U.S. operations. Either way, this organization already knows the value of having alternatives ready. Says Mook: “What we’ve learned is, you just can’t rely on one technology or one thing.” – Source: Fast Company.

SANITATION

Trays and Baskets may be a Weak Point in Food Safety

When the topics of sanitation and maintenance come up in a commercial bakery, the trays or baskets that deliver finished product to the bakery’s customer usually aren’t top of mind. As pieces that go out into the world and then return to the bakery — bringing back with them anything they encountered along the way — baskets and trays should not be overlooked when it comes to providing a clean manufacturing environment. “As routine as cleaning a tray or basket may seem to most, those small items may be the root cause of a major issue if not handled correctly,” said Kevin Quinn, sales manager, Douglas Machines Corp. “Everyone wants to avoid eye-grabbing headlines. It really boils down to how important food safety is for items such as trays, baking sheets, and baskets to your company. It should be priority one in the baking and snack foods industry.” Tray design, handling systems, and washing and drying systems can all play a role in making these utility pieces easier to clean so they can effectively protect food. Cleaning these items for food safety didn’t use to be a priority. They were necessary to transport finished products to customers, sometimes function as a display, but mostly, they needed to be utilitarian and hold up with the rigors of transport and stacking. “Returnable plastic assets including trays, dollies, and pallets are much more than transportation or distribution packaging,” said Glenn Rindfleisch, vice-president, sales and marketing, SPF Plastics. They are an integral part of the supply chain from work-in-progress all the way to the retail store. At SPF Groups, we consider every facet of our customers’ business to create the best value including design, material, and function. Sanitation is a critical component of our new product development process.”  Sanitation is at the forefront of food manufacturing conversations largely because of the Food Safety Modernization Act (FSMA). “This regulation has impacted sanitation by elevating it to another level and requiring companies large and small to comply,” Mr. Quinn said. FSMA requires manufacturers to document quality assurance and sanitation practices to ensure food safety. This emphasis on cleanliness trickles down throughout the entire bakery, not just the production floor. Entire supply chains and processing methods are carefully monitored including returnable plastic assets that require regular cleaning. Most plastic bakery trays include flow-through designs for easy sanitation. Sanitation of transport assets is critical because they exit the bakery, a controlled environment, and go out into the world, which is an uncontrolled one. On the road and in supermarkets or QSRs, a tray can pick up pathogen strains like E. coli and bring them back into the bakery. “That’s a risk that most of our customers cannot bear anymore,” said Patrice Painchaud, vice-president, sales and marketing, Rexfab. To minimize the risk, trays are being redesigned for easier cleaning, and tray handling systems are making way for the latest washers and dryers that sanitize everything properly. – Food Business News.

NUTRITION

Eating these Foods Regularly can be Disastrous for your Health

We all know that ultra-processed foods like candy, soda, pre-packaged microwave meals, and hotdogs aren’t healthy. That certainly isn’t breaking news. But, the true extent of their negative impact on the human body and lifespan will likely surprise many readers. It’s one thing to hear that sugary cereals or bags of chips are “bad for you,” but the findings of a recent study are taking things to an entirely new level of concern. Italian researchers report regularly eating “ultra-processed foods” over an extended period (eight years) led to a 26% higher risk of death from any cause and a 58% higher risk of death from cardiovascular disease among a group of participants. What exactly are ultra-processed foods? A troublingly large percentage of the foods for sale in grocery stores all over the world. From candies, chips, and ice cream to pre-packaged soups, frozen fries, and chicken nuggets, it’s hard to venture down a single food store aisle these days without being greeted by something that’s been through a conveyor belt. More specifically, most ultra-processed foods are loaded with excessive amounts of sugar, oil, and salt, and low in essential nutrients. Again, it’s no secret that these foods aren’t doing our bodies any favors. So, why then are processed foods so popular and seemingly unavoidable nowadays? Researchers say it’s easy to understand the popularity of such food goods. After all, these items are quite literally produced to be as tasty as possible. Overconsumption is the name of the game and food producers want you to reach in for just another handful of chips because ultimately that means more money spent on the snack budget each week. Besides all that, processed foods are also super convenient. Sure, an all-natural salad made using only the freshest ingredients is a healthier option, but who has time for that day in and day out? Modern life is busy and hectic, and processed foods are designed to be eaten on the go or in a pinch. Finally, one must consider prices as well. What do you think will cost more? A microwave meal from the frozen aisle or a fresh and nutritious home-cooked meal? Hopefully, though, these findings will help at least some among us realize that a candy bar for dinner may be convenient today but it isn’t worth it in the long run. Conducted at the I.R.C.C.S Neuromed in Italy, researchers had access to health and diet data on over 22,000 local citizens. Those participants had been enrolled in the Moli-sani Project, a long-term research project that began in 2005 focusing on how both environmental and genetic factors may influence a variety of health outcomes throughout life. All that data allowed the research team to track participants’ diets and health conditions for eight years. “To evaluate the nutrition habits of the Moli-sani participants we used the international NOVA classification, which characterizes foods on the basis of how much they undergo an extraction, purification, or alteration,” explains first study author Marialaura Bonaccio, a researcher at the Department of Epidemiology and Prevention. “Those with the highest level of industrial processing fall into the category of ultra-processed foods. According to our observations, people consuming large amounts of these foods have an increased risk of dying from cardiovascular and cerebrovascular diseases.” Why exactly are ultra-processed foods so incredibly bad for us? Study authors say an obvious culprit is sugar, considering it is so prevalent among countless processed foods.

However, they say their findings don’t support that theory. “According to our analyses the excess of sugar does play a role, but it accounts only for 40% of the increased death risk,” comments Augusto Di Castelnuovo, epidemiologist of the Department, currently at Mediterranea Cardiocentro in Naples. Our idea is that an important part is played by industrial processing itself, able to induce deep modifications in the structure and composition of nutrients.” In light of these findings, researchers stress the importance of spreading the word about the dangers associated with ultra-processed foods. They say it isn’t enough to simply advise “eat healthy;” everyone, but especially younger generations, stand to benefit from a more robust educational campaign that hammers home the dangers of these food products. “Efforts aimed to lead the population towards a healthier diet can no longer be addressed only by calories counting or by vague references to the Mediterranean diet,” adds Licia Iacoviello, Director of the Department of Epidemiology and Prevention of Neuromed and full professor of Hygiene and Public Health at the University of Insubria in Varese. “Sure, we obtained good results by those means, but now the battlefront is moving. Young people, in particular, are increasingly exposed to pre-packaged foods, easy to prepare and consume, extremely attractive and generally cheap. This study, and other international researches going in the same direction, tell us that, in a healthy nutrition habit, fresh or minimally processed foods must be paramount.” The occasional candy bar or microwaved soup isn’t a big deal, but don’t make such culinary shortcuts a daily habit. “Spending a few more minutes cooking a lunch instead of warming a container in the microwave, or maybe preparing a sandwich for our children instead of putting a pre-packaged snack in their backpack: these are actions that will reward us over the years,” Professor Iacoviello concludes. The full study can be found here, published in the American Journal of Clinical Nutrition. – Source: John Anderer.

The polished chain is leaning roots, and evolution, from creating a virtual burger brand to curbside, as it looks toward life after Covid-19 . . . .

Firebirds Turns 20 in a Year Unlike Any Other

Firebirds Wood Fired Grill turned 20 years old on December 20. Normally, this would be a time to look back and remember the restaurant world at the turn of the millennium. But 2020 itself felt like two decades wrapped into 10 months. So there’s a lot for Stephen Loftis, the polished chain’s VP of marketing, to reflect on. Before COVID-19 became the end-all of every industry conversation in early March, Firebirds was poised for a tremendous year, Loftis says. The chain was a full calendar removed from being sold to J. H. Whitney Capital Partners in January 2019. The firm purchased Firebirds from Angelo Gordon & Co. for an undisclosed amount. Gordon acquired the brand in 2011 when it had 18 stores and grew it to 48. Last August, Firebirds opened its 50th location. And it was plotting more through a significant design change debuted two years prior in Jacksonville, Florida, which showcased modern décor, such as light-colored woods and floor-to-ceiling windows, and made the FIREBAR a can’t-miss focal point. Yet as much as the brand transformed and was continuing to do so, some of its historic DNA shielded it from COVID’s sharpest blows. Loftis says Firebirds had to scratch and claw, like all restaurant brands, but one thing it didn’t need to do was hard-sell customers on its merits. The company’s reputation insulated it. “I think guests understood the safety and cleanliness, and the sanitation that goes into our business on a daily basis,” Loftis says. In other terms, guests trusted Firebirds. They had for 20 years. Additionally, polished casual suggests a higher standard across the board, from food preparation to safety to service. Firebirds had to live up to that before coronavirus. “We didn’t have to overcome any cleanliness, sanitation, preparing food, service issues, or challenges,” Loftis says. “There was no consumer negative sentiment there.” That’s not to say Firebirds didn’t innovate. The company launched online ordering systemwide in October 2017 and partnered with DoorDash in November 2018 after a pilot program in select markets. How prominent these channels were pre-COVID isn’t as vital as the fact they were simply there. The infrastructure was ready. In one fateful week in March, restaurants either found themselves scrambling to onboard tech or pivoting resources toward it. For Firebirds, it was more the latter. “So we were able to pivot pretty early and make some adjustments to some of our offerings,” Loftis says. The chain leaned into a fresh category, family meal deals. These arrived March 20 for delivery and ToGo curbside, and offered options from cheeseburgers and chicken tenders to baby back ribs. They started at $29.95 to feed a family of four and included salads, sides, bread, and desserts, like assorted cheesecake and brownie bites. DoorDash provided 20 percent off first orders in those early days as well.

Firebirds new design, unveiled in 2017, now includes a smaller store and dedicated pickup area.

Once the dust settled a bit, Firebirds aimed to become a one-stop-shop for guests. And a natural extension, given the chain cuts all its beef, seafood, and poultry in-house was to introduce a “Butcher Shoppe” program where customers could grab raw items and make them at home. For example, a “Burger Pack” tailgating kit that includes eight half-pound burgers with brioche buns ($39.99) or a “Steak Pack” that features two 14-ounce ribeyes, two 7-ounce center-cut sirloins, and four half-pound burgers ($59.99). All of the options include Firebirds’ signature steak seasoning. Loftis says people showed up for pickup, grabbed a family meal, and then added a few steaks or other Butcher Shoppe items to cook the next day. Also, in certain markets where laws allow it, Firebirds launched FIREBAR To-Go, which packages drink options, like the company’s Double Black Diamond Martini. One of the first adjustments for Firebirds was to stand up curbside. It created makeshift drive-thrus like those you see dotting parking lots of full-service chains nationwide. Guests can order online, pull up, and have food simply placed in the backseat, trunk, or wherever. Loftis doesn’t see curbside losing steam. Beyond the convenience benefit, it helps the restaurant. Off-premises guests stay in their cars as opposed to crowding the lobby or bar. This is, naturally, important today as restaurants navigate capacity restrictions and try to promote social distancing. But it will remain viable even when people pack dining rooms. Bartenders or frontline employees can focus on serving guests in front of them instead of running food out. This is doubly true with third-party drivers. “It is here to stay,” Loftis says. Just like with family meals and adjusting menu offerings to further its off-premises lineup during COVID, Firebirds is working to boost curbside. It’s run a test with FlyBuy, a company that presents like an Uber for tracking cars that show up. The restaurant can observe how close a customer is and prevent employees from constantly having to look out the window to see if they’re approaching. It then alerts staff when the guest is a mile out and .1 miles out. Firebirds, which backends its service through Olo, has not formalized the test systemwide but continues to look at opportunities to improve curbside as it solidifies its spot in the company’s off-premises future.

Firebirds’ service and food-quality standards helped it meet pandemic demands.

In August, September, and even into October, Firebirds year-over-year sales tracked nearly flat, Loftis says. However, COVID case spikes and reopening setbacks have challenged trends since, as has been the case industry-wide. According to Black Box Intelligence, comp sales and traffic for the week ending December 27 were the worst experienced for restaurants since mid-June. Upscale casual and fine dining witnessed the worst comp sales among all sectors. It’s not an overly complicated dilemma. The best-performing regions of the country based on comp sales during the week were the Southeast, Southwest, Florida, and Texas. The worst were California, New England, New York-New Jersey, and the Mid-Atlantic. So it’s evident that, in many of the poorly performing regions, colder weather is dampening the outlook. But so are restrictions. California, for instance, was the worst-performing region amid its spike in COVID cases. Tighter restrictions due to the virus were likely the driving factor. Comp sales growth has fallen by almost 25 percentage points compared to California’s performance the week before Thanksgiving, Black Box said. There really is no easy way around the lack of holiday business, Loftis says. “That has sort of been the one sales miss that I don’t know what you do with that necessarily—that has really hurt us,” he says. From catering to office parties, it’s something Firebirds and thousands of stores around America are weathering as 2021 progresses. All that said, Firebirds is still growing. The chain opened its 52nd restaurant in Lee’s Summit, Missouri, in November—a unit that includes Firebirds’ new open design with a view of the exhibition kitchen. It also boasts an all-season patio and a private dining room with audiovisual technology. And with COVID trends circling, Firebirds added a takeout section where employees can stage off-premises items. Similar to curbside, this is something that will benefit workflow on the other side of the pandemic as guests won’t have to go into the main restaurant to get their food. Loftis says three restaurants are under construction currently: in Dallas Fort Worth, Knoxville, Tennessee, and Huntersville, North Carolina. The latter store is a smaller square footage venue that’s been in the work for some time. It’s under 5,000 square feet (typical Firebirds are 6,500 plus) and has a takeout component like the Lee’s Summit restaurant. “I think you’re going to see that prototype moving forward, not only from us but from a lot of different folks,” Loftis says of the scaled-down option.

Holiday feasts proved popular at Firebirds. The future, a virtual burger chain, and the surge

One thing about polished casual is that it’s not having an identity crisis. Before the pandemic, customers, especially younger ones, started to flock to the experience-driven corner of foodservice. Given the rise of fast-casual and uptick in quick-service quality, brands were forced to draw the line firmer than ever. If somebody was going to pay up for service, it had to separate from a bevy of choices, whether that be price and time (delivery and fast food) or quality and time (higher-end fast casuals). Loftis says Firebirds revisited its playbook and sharpened its tools during COVID, but with a nod to what comes after. All the service and culinary differentiators from before are going to be the same ones customers rush toward. Food and service they couldn’t replicate at home. Back in April, Datassential asked consumers what the No. 1 thing they missed was. The answer: “dining at my favorite sit-down restaurant” at 41 percent. “I think people, once they feel comfortable, are going to chargeback out. And we think Firebirds fits that niche,” he says. “People can feel comfortable coming to Firebirds, feeling safe, and having a great experience. We’re ready.” The chain just recently introduced its Winter Features menu, which includes items like a Seared Tuna Superfoods Salad and Grilled Striped Bass topped with pan-seared mezcal shrimp. While the four-wall experience will always reign, Firebirds will have other streams of revenue to turn to if needed. Bundles, for one, proved popular during the holiday season, Loftis says. Firebirds created a Turkey Feast and Prime Rib Feast (options for six or 12 guests). “I think you’re going to see from us more of that and more perfecting of that as we get into [2021] and that’s something, like curbside I don’t think is going to go away,” he says. Firebirds also fine-tuned a virtual concept called FireBurger, which launched via DoorDash (check out the menu). At the end of December, it ran out of 29 locations with plans to expand to all 52 Firebirds kitchens. Loftis says the idea stemmed from underserved demand for high-end burgers in the marketplace. Firebirds is working on a second virtual concept, too, but will share more details later. The company is in the final stages of “re-skinning” its online ordering system on the front-end to improve the guest-facing experience. Additionally, Firebirds started a brunch test in August in Florida that’s received positive feedback. That’s a sales lever or revenue opportunity the company will be able to pill as it sees fit as well. Loftis is optimistic, come spring or so, the country can get back on its feet and restaurants will be there to help them return to some semblance of normal. “The good news is hopefully if May 1 is the date, then this time next year the business is just screaming and just roaring and doing what it needs to do on all fronts,” he says.” I think that’s hopefully what the future is and what the tea leaves hold for us because that would be a lot of fun to get back to that place.” – Source: fsrmagazine.

Employment was down roughly 2.5 million compared to last year . . . .

Restaurant Industry Cut 372,000 Jobs in December

Restaurants shed more than 372,000 jobs in December after seven consecutive months of gains, according to the Bureau of Labor Statistics. The BLS reported that food and drink places cut 17,400 jobs in November. However, in the December report, data was adjusted to show that restaurants gained 13,600 jobs in November. Due to the adjustment, December marked the industry’s first decrease since losing roughly six million in March and April. In December, 9.8 million workers were on payroll compared to 12.2 million in the year-ago period. The recent decrease accounted for three-fourths of the total job loss in the leisure and hospitality category. “The decline in payroll employment reflects the recent rise in the number of coronavirus (COVID-19) cases and increased efforts to contain the pandemic,” William W. Beach, commissioner of BLS, said in a statement. The National Restaurant Association said in December that more than 110,000 restaurants, or 17 percent of the industry, have closed permanently or long-term since COVID his the U.S. On average, the brands were operating for 16 years, and 16 percent were open for at least 30 years. The Independent Restaurant Coalition (IRC) has repeatedly asked for aid in the form of the RESTAURANTS Act, which would provide $120 billion to independent locations and small-sized chains. In late December, Congress passed a new $908 billion stimulus package but opted instead for a revised Paycheck Protection Program—that has been criticized by many in the industry—and tax deductibility for business meals. “New changes to the Paycheck Protection Program will be too little, too late for hundreds of thousands of people left without a paycheck this holiday season,” said the IRC in a statement. “The people who work in restaurants and bars are uniquely hurt by this pandemic, and don’t deserve it.” “… Restaurants, bakeries, bars, and coffee shops employ more non-white managers and young people than any other industry,” the organization continued. “Immigrants, a million single mothers, and the formerly incarcerated rely on restaurants and bars for their livelihood. We cannot leave these communities jobless.  A direct relief plan like the RESTAURANTS Act is vital to ensure there are places to work when restaurants can fully reopen and rehire their teams.” It remains to be seen whether the new governmental regime will move forward with specific plans to target the restaurant industry. By the end of the month, it is expected that Democrats—who have shown support for providing direct relief—will control the House of Representatives, Senate, and presidency. The IRC said Congress hasn’t done enough to protect restaurant workers’ paychecks during the pandemic, but added the House Speaker Nancy Pelosi, Senate Minority Leader Chuck Schumer, and President-elect Joe Biden have all called for direct relief for independent restaurants and bars. In the fall, the House of Representatives passed a $2.2 trillion stimulus package that included the RESTAURANTS Act, but the bill died in the Senate, which is currently controlled by Republicans. “We hope the new government acts swiftly on a plan to save restaurants,” the IRC said. In the U.S. overall, 140,000 jobs were cut, and the unemployment rate remained at 6.7 percent. In total, 10.7 million are unemployed. Job losses in leisure and hospitality and in private education were partially offset by gains in professional and business services, retail trade, and construction. – Source: frmagazine.

Washington, D.C. restaurant workers targeted to receive vaccines starting Feb. 1, but other city and state vaccination schedules remain unclear . . . .

Chicago Restaurant Workers are not in Line to be Vaccinated Until at Least next Month, city officials said

After the Centers for Disease Control and Prevention prioritized restaurant workers in December as “other essential workers” and part of the third group in the first wave (group 1c) in line to receive the COVID-19 vaccinations, cities are beginning to provide timelines for when these essential workers will be eligible to receive vaccinations. On Monday, Washington, D.C. Mayor Muriel Bowser said in a press conference that the city’s restaurant workers have been classified as “other essential workers” and will have a target vaccination eligibility date of Feb. 1. Residents living in Virginia and Maryland will also be eligible for the vaccinations. While the CDC guidelines have deemed foodservice workers part of the third group in the first wave of Americans to receive the vaccine (along with people ages 65-74, adults with underlying medical conditions and other essential workers like transportation, construction, and public health workers), state governments and local health departments will have the final say on vaccine distribution. The National Restaurant Association advocated for foodservice workers to be placed in group 1b instead of 1c when the CDC rolled out its vaccine distribution recommendations in December.   “In our Blueprint for Restaurant Revival, the Association requested vaccine priority for foodservice workers, behind health care workers, first responders, and vulnerable populations, to help ensure the food supply chain,” Sean Kennedy, executive vice president for public affairs for the NRA told Nation’s Restaurant News. “Prioritizing testing and vaccine distribution will help ensure the food supply chain for our communities and ensure that the agriculture industry and restaurant industry employees will be safe selling and serving healthy food.” On Tuesday, Chicago city officials clarified in a press conference that as the city continues to prioritize hospital workers as first in line to receive the COVID-19 vaccine, hospital foodservice employees are also considered part of that group. Restaurant employees, however, will likely have to wait until at least February, city officials said. “We do not have enough vaccines,” Chicago mayor Lori Lightfoot said Tuesday. “If you want to have us bend this curve and give people confidence, there must be an exponential increase in vaccines available. At the current rate, it would take us a year and a half to vaccinate Chicago.” Currently, the city is “not close to done with” vaccinating healthcare workers in group 1a, Chicago Department of Public Health commissioner Dr. Allison Arwady, said, and phase 1b (expanded to elderly citizens and the first wave of frontline workers) will likely not begin until next month “at the earliest.” Other local governments have not begun to release a targeted schedule of vaccination groups. New York State is currently still dealing with challenges associated with vaccinating group 1a frontline workers. On Tuesday, New York Gov. Andrew Cuomo said in a press conference that so far, 900,000 vaccines have been distributed for 2.1 million healthcare workers in the state. He has attributed the slow rollout to both supply and dissemination issues. Gov. Cuomo also said that the state’s organization plan for group 1b is “underway” for frontline essential workers, though did not specifically mention when restaurant workers would be eligible for vaccination. In California, Gov. Gavin Newsom criticized the distribution of the vaccines as “too slow,” since only 35% of doses have been distributed to healthcare workers and long-term care residents. Restaurant workers are not specifically listed on California’s COVID-19 plan, and spring 2021 is the “best estimate” for when the vaccines will be available to the general public. Nation’s Restaurant News has contacted the health departments in Chicago, New York State, and California for more specific information on when restaurant workers can expect to receive vaccination eligibility. – Source: Restaurant Hospitality.

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