CHEFS Restaurant Consulting

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This article was written in the second half of April 2020 and California is still in a Shelter in Place status, which has been in effect since March 19, 2020. Since this date, only restaurants doing take-out and delivery are allowed to operate. All other restaurants and bars have been ordered to close. The California Restaurant Association (CRA) recently estimated that 30% of all restaurants in the state that were closed during the Shelter in Place period will not reopen once... the Shelter in Place has been lifted. There are approximately 80,000 eating and drinking businesses in California which means potentially over 20,000 of these eating and drinking businesses may not reopen. For an owner-operator of a closed restaurant and bar business to be able to reopen they will need to take care of all their past accounts payable liabilities mentioned above. Additionally, if they want to reopen their closed business they will have to deal with the additional costs of reopening their business, which will include hiring and training new employees, dealing with the costs of any deferred maintenance as a result of being closed, purchasing new food and equipment products to operate and marketing costs to notify the public that they have reopened for business.

ARE YOU READY FOR THE NEW NORMAL? It's time to start planning for the new normal. Is your restaurant ready??? As you are waiting to re-open, don't forget to spruce up your Kitchen and the FOH. Customers will carefully be inspecting your place for more than cleanliness, of course, but if your space looks a little worn out this won't help then feel at ease. Take the time to look over things like (paint touch-ups, throw out those broken chairs, replace those burnt out light bulbs, clean the windows, and make sure the floor and tables are spotless). The customer will be a bit nervous and you need to let them know you care. Best of Luck in this new normal.

Restaurant analysts and operators have been quoting an estimate that 75 percent of the independent restaurants that have been closed to protect Americans from the coronavirus won’t make it. The National Restaurant Association estimated this week that the entire industry would lose $225 billion in the coming three months and shed five to seven million employees. The National Restaurant Association asked t...he federal government last Wednesday for a $145 billion recovery fund. The request, sent to President Trump and Congress, includes loan programs, $35 billion in grants for restaurant disaster relief in regions and communities especially hard-hit, and help in paying unemployed workers. The package also proposes a series of tax cuts and credits and federally backed business-interruption insurance. Traditional business-interruption policies are expensive, and some exclude coverage for pandemics. See more

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