Stats Of The Week The State Of The Industry In December, job losses in the restaurant industry increased dramatically with 372,000 jobs lost, according to the Bureau of Labor Statistics employment report. Compared to November, which saw 17,000 jobs lost at restaurants and bars, this new staggering number indicates a worsening trend for employment growth within the industry. Leisure and hospitality unemployment is 157% higher than the national average, according to the Independent Restaurant Coalition. At the end of 2020, the foodservice industry had 2.5 million jobs less than pre-pandemic levels. The continued spike in COVID-19 cases across the country has led to increased dining room restrictions which have resulted in major job losses. As of December, over 110,000 restaurants have permanently closed. "Today's jobs numbers are devastating for our operators and our employees. The industry has nearly three times more unemployed workers than the next closest industry. As we go into 2021, the availability of the vaccine provides some hope, but it will be months before we start to see recovery for restaurants," Sean Kennedy, executive vice president of public affairs at the National Restaurant Association, said to Restaurant Dive. End Of Year Sales Improve From The Beginning Of The Pandemic Data from The NPD Group shows an improvement in restaurant sales from the end of the year compared to the early months of the pandemic. In December, customer transactions at major restaurant chains were down 10% compared to 37% in April when shutdown orders first came into effect. The full-service segment experienced transaction declines of 70% in April with sales improving to only a 30% decline in December. The improved sales are largely credited to restaurants adopting off-premise channels, like curbside pickup and delivery. Quick-service chains were better suited to handle the negative impacts of the pandemic due to their drive-thru operations. In December, the quick-service segment experienced transaction declines of 8% compared to a decline of 35% in April. What’s Trending States Begin Rolling Out Vaccines For Restaurant Workers After the CDC prioritized restaurant workers as “other essential workers'' in December, their time to receive the COVID-19 vaccinations is soon arriving. This week, cities are beginning to announce timelines of when essential workers will be able to receive vaccinations. Washington, D.C. Mayor Muriel Bowser said in a press conference that the city’s restaurant workers will be eligible to receive vaccines as soon as February 1. Virginia and Maryland residents that are eligible will also be able to receive vaccines at that time. Though foodservice workers have been deemed essential workers, it is up to each state to come up with a plan for vaccine distribution. Some states have not yet laid out clear dates of when their local restaurant workers can receive the vaccine. Chicago city officials said in a press conference that the city is prioritizing hospital workers, stating that they don’t have enough vaccines yet to give to other essential workers. They predict restaurant employees will have to wait until at least February. New York is also vaccinating only frontline workers at this time with NY Governor Andrew Cuomo attributing the slow rollout to both supply and dissemination issues in a recent press conference. California Governor Gavin Newsom has criticized the distribution of the vaccine as too slow with only 35% of doses being distributed to healthcare workers and long-term care residents in California so far. Biden Advocates For Restaurants To Receive More Support While President-Elect Joe Biden announced his final cabinet nominations last Friday, he also announced his plans to increase minimum wage, expand stimulus funding, and provide more relief for restaurants and bars. Biden said during his remarks that no one who works 40 hours a week in America should live below the poverty line and are entitled to a minimum of $15 an hour. He also said restaurants, bars, the hospitality industry, and others that have been hit the hardest will receive direct relief. The president-elect stated his main focus is on helping small businesses and to correct the current administration’s failure to provide funding for small businesses that need it most. Biden said mom-and-pops stores are the backbone of the U.S. economy and stated one in four small businesses have closed during the pandemic. “The bipartisan COVID-relief package passed in December is an important step, but just a down payment. Next week, I will be laying out the groundwork for the next COVID economic relief package that meets this critical moment for our economy and country,” Biden said in remarks. A Second Round Of PPP Loans Is On The Way The U.S. Small Business Administration and the Treasury Department have reopened the Payment Protection Program as of January 11 to new borrowers and some existing PPP borrowers. The second round of PPP was funded as a part of the $900 billion stimulus package with $284 billion in funds available for the program. This installment of PPP loans is targeted towards job retention, operation expenditures, property damage costs, and other expenses through March 31. The association has created a manual to streamline the application process for new borrowers and in some cases will be available for past borrowers. “The historically successful Paycheck Protection Program served as an economic lifeline to millions of small businesses and their employees when they needed it most. Today’s guidance builds on the success of the program and adapts to the changing needs of small business owners by providing targeted relief and a simpler forgiveness process to ensure their path to recovery,” Jovita Carranza, administrator of the Small Business Administration said to Nation’s Restaurant News. Customers Rate Restaurants’ Ability To Follow COVID-19 Guidelines With safety at the top of everyone’s mind as the U.S. experiences record positive cases, Yelp has launched a new feature that displays how well a restaurant complies with safety measures. Users will be able to provide feedback about a restaurants’ enforcement of safety guidelines that will be visible on the restaurant’s listing under a section called “Health & Safety Measures”. If a majority of users observed social distancing being enforced and staff wearing masks, the restaurant will receive a green checkmark. If a restaurant receives an orange question mark, that indicates the majority of users said measures weren’t being enforced or that responses were mixed. The company said in a blog post that the update is intended to instill confidence in consumers as they continue to support their local businesses. Restaurants Launch New Menu Items To Satisfy Current Consumer Behavior The new year brings a new wave of consumer behavior. The month of January shows conflicting views of what consumers want to eat with many wanting to follow through with New Year’s resolutions to eat healthier while others seek to indulge in comfort foods during the cold month. For those looking for healthier options for their favorite meals, Fazoli’s has introduced a new low-carb pepperoni and bacon flatbread to satisfy your cravings while following your health goals. Freebirds is also riding the low-carb trend by adding cauliflower rice as an option for any of their burrito bowls. Frisch’s Big Boy is enticing comfort food lovers by pairing their new grilled cheese sandwich stuffed with potato chips alongside tomato bisque soup. Appealing to vegans who have a sweet tooth, Insomnia Cookies has added a selection of plant-based cookies with flavors like birthday cake, chocolate chunk, and double chocolate chunk. Bright Spots In A COVID-19 World Neighbors Save Family Farm From Going Under Like many farmers that lost their main source of income due to restaurant shutdowns during the pandemic, the Laughing Stock Farm in Freeport, Maine was no different. Owners Ralph and Lisa Turner suddenly had eight overflowing greenhouses and 10 tons of vegetables in cold storage with no demand. Once the Turners realized the sales they were accustomed to were no longer there, they went back to the drawing board and created a farm stand. They sold pre-bagged produce for $3 a bag and made locals aware of their new endeavor through their company newsletter. Lisa told the New York Times that more and more people shared their newsletter and on opening day experienced more visitors than they had imagined. After realizing they were onto something, Lisa contacted local beef and dairy farmers to add to their goods. The Turners also found that customers would leave generous tips to show their support. Though the farm stand hasn’t seen a huge profit, the Turners are thankful for the stand and the support from their neighbors in helping their business stay afloat. Barber Shop Owner Steps Up To Help COVID-Stricken Restaurant Würstbar, a restaurant in Jersey City, NJ, had adapted its business model to adhere to local guidelines and the current demand. One day, one of their employees had informed them that they had been exposed to COVID-19. Rather than risk spreading the disease, restaurant management chose to temporarily shut down the restaurant until all of its staff could get tested. When word got around the close-knit community that the restaurant was closing down, the restaurant’s neighborhood barbershop, Virile Barber Shop, stepped up to lend a hand. Barbershop owner Andre Fersa scheduled his staff to take shifts at Würstbar to offer drinks and pretzels to customers for outdoor seating. Once the restaurant was back in business, they expressed their gratitude and encouraged residents to visit the barbershop since they have also been negatively impacted by the pandemic. “A big thank you to the crew at @virile for taking over Würstbar yesterday, that was a blast! We love this community and couldn’t ask for better neighbors,” posted from Würstbar’s Instagram account. Quote Of Hope “Restaurant workers are the heart and soul of the food they serve, it's vital they come back to work.” - Sean Feeney, co-founder of Grovehouse Hospitality Group and owner of New York City restaurants Lilia and Misi

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Stats Of The Week The State Of The Industry As mandated closures and capacity restrictions led to the most challenging business conditions in history, restaurants that rely on tourism for their business have experienced significantly trying circumstances. In a typical year before COVID-19, an average of 41% of sales in the fine-dining segment came from travelers and visitors, according to data from the National Restaurant Association. 1 in 4 fine-dining operators said travelers accounted for at least 60% of their sales before the pandemic. With both personal and business travel significantly dropping in 2020, spending in restaurants fell sharply. From June to November 2020, travelers and visitors were responsible for only 19% of sales in the fine-dining segment. The percent of sales coming from vacationers in recent months was less than half than it was before the pandemic for casual dining, fine dining, quick service, fast casual, and family dining. Chains Experience The Most Success In The 2020 Stock Market Despite the negative impact the pandemic had on the restaurant industry in 2020, restaurant stocks still went up last year. Publicly traded restaurant chains saw the most success with a median price increase of over 4%, according to data from Sentieo. The median price is well below 2019, which was above 16%, but is better compared to the projected low numbers of March 2020. Investors were meticulous in choosing establishments that had strong off-premise operations and predicted that take out would remain a dominant force even after the pandemic. Full-service chains did not perform as well as limited-service restaurants with a median stock price decrease of 16% in 2020. The best performing restaurant chains in 2020 were Chipotle Mexican Grill, Wingstop, Noodles & Co., Shake Shack, and Texas Roadhouse. What’s Trending 2021 Trends Influencing The Restaurant Industry With the timeline of returning to normalcy still unknown, the new year will bring new challenges and opportunities for the restaurant industry. Many restaurant trends, including ghost kitchens and digital ordering, were already in motion before the pandemic, but are now the top concepts expected to shape the industry in 2021. Diners are looking for convenient channels for curbside pickup as a cheaper alternative to deliveries. Curbside pickup has proven to be a powerful option for restaurants that don’t have drive-thrus and provides convenience to customers at no extra cost. In 2021, chains are expected to create new prototype expansions in the suburbs that are focused on smaller dining rooms and larger drive-thrus. The way forward for restaurants is implementing new technologies and concepts that are focused on off-premise operations that are convenient and make it easy for customers to place orders. "Digital technology is really what's going to drive value creation going forward. It's really the combination of consumer-facing technology with curbside, drive-thru, delivery, and also plays into the real estate and labor piece as well, because it's all interrelated. What you're seeing is this permeation of a holistic digital infrastructure," Lauren Silberman, senior analyst at Credit Suisse, said to Restaurant Dive. What Digital Ordering Will Look Like In The New Year The restaurant industry has experienced many changes throughout the pandemic, but one trend that is expected to stay is the emphasis on off-premise operations. In 2021, consumers are expecting online ordering to be more seamless with 20% of consumers saying they’re ordering carry out or delivery more because the digital ordering process has become more convenient and widely available than before the pandemic. In Q1 2020, 9% of restaurant orders were made by phone or online. By Q2 2020, that number drastically increased to 33% with mobile and online orders for carry out alone increasing by 286%, according to data from Technomic. Customers are also expecting top-tier customer service with off-premise experiences. As dining room closures increased traffic from first-time users, user-friendly technologies are essential to make ordering easy and keeping customers coming back. Stimulus Package Provides Little Relief For Restaurant Workers Following months of political debate as the restaurant industry experienced substantial job losses and restaurant closures, Congress has approved a $900 billion stimulus package. Though this may seem like a large number, the money that is being distributed does not meet the level needed for unemployed cooks, servers, managers, and more. The recent stimulus bill is about half the amount Americans received under the $2.2 trillion CARES Act that kept the economy afloat in the spring. The hospitality industry also hasn’t received targeted aid even though millions of jobs have been lost since the beginning of the pandemic. However, the airline industry, which has lost fewer than 140,000 workers, is receiving $16 billion in assistance from this package. Movie theaters and concert venues will also benefit from $15 billion in funds. Uber Eats Launches New Feature To Compare Competition Uber Eats has added new insights to its Uber Eats Manager app that shares data with partners on how a merchant’s operations on the marketplace compared to others in the area. The new feature also creates suggestions of actions for restaurants to follow to improve their operations. After receiving feedback from its partners wanting more real-time data, Uber Eats created this feature to help restaurant owners make more informed decisions about their customers and operations. The app also tracks sales volumes, operational statistics, earnings, and sales trends in real time. Restaurants that receive high customer feedback and operational metrics will be highlighted on the app’s Top Eats section during monthly evaluations. The company hopes this feature helps operators gain more knowledge about their customers while streamlining their restaurant operations. The War Over The Best Chicken Sandwich Continues As more and more fast-food restaurants add upgraded chicken sandwiches to their menus, the continued competition has become a result of customers’ desire for more chicken options. McDonald’s is the most recent chain to launch three versions of its crispy chicken sandwich that will be released in February. The popularity of chicken sandwiches first arose from Chick-fil-A’s chicken sandwich which helped the chain grow to be the third-largest restaurant chain after McDonald’s and Starbucks. Over a year ago, Popeyes came onto the scene with their infamous crispy chicken sandwich that proved to be remarkably successful. Soon after, numerous chains including BurgerFi, KFC, and Sonic introduced their versions of chicken sandwiches. McDonald’s USA President Joe Erlinger said to Restaurant Business that developing a reputation for great chicken represents one of their highest aspirations for the chain. “We believe it’s going to jump-start our chicken journey, build our chicken credentials and get people to start looking at us differently,” Erlinger said to Restaurant Business. Bright Spots In A COVID-19 World Customer Leaves Large Tip For Local Restaurant Brendan Ring, owner of Nighttown in Cleveland, OH, chose to voluntarily close his restaurant until further notice due to COVID-19 concerns. On the night before the restaurant shut down, a customer came into the restaurant and ordered a single $7 beer. After the customer handed the check to Ring he saw that the customer had left a $3,000 tip. Ring ran after the man and he said the tip was no mistake and that he will return to the restaurant when they reopen. The customer asked for the tip to be shared with the restaurant’s waitstaff. “Unbelievable but symbolic of the kind of quality folks we have known at Nighttown all these years. All my waitstaff and myself are humbly grateful for this incredibly kind and grand gesture,” Ring wrote in a Facebook post. Locals Save Restaurant Known For Giving Free Meals From Shutting Down Kazi Mannan, owner of Sakina Halal Grill in Washington D.C., is known by his community for feeding anyone, regardless of whether they can pay for their meal or not. Before the pandemic, Mannan would serve as many as 80 free meals in a day. Once the pandemic hit and business declined, Mannan had to lay off his employees and close his restaurant indefinitely. One of Mannan’s family members started a GoFundMe page to help the restaurant stay afloat and the feedback they received surpassed what they were hoping for. As of now, the campaign has received over $331,430 from more than 7,100 individual donations with more continuously donating. "I used to preach don't let anybody fall and pick them up. Today, you picked me up and I am overwhelmed. I have tears in my eyes, tears of joy," Mannan said to his donors in an interview with NBC Washington. Quote Of Hope "We are very hopeful that everything will get back and we will have more employees back to work and more jobs for the people in the community and we're ready to serve the homeless community the same way we used to serve." - Kazi Mannan, owner of Sakina Halal Grill

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Stats Of The Week The State Of The Industry In 2021, consumers expect outdoor dining and curbside pickup to stay around and become standard practice, according to research from Constant Contact. New research shows that customers want restaurants to offer more creative offerings in 2021 with 40% in favor of dinner and movie packages, 14% interested in cooking classes, and 12% for virtual wine tastings. This research found that 52% of consumers said they would feel safe returning to physical stores in less than six months, and 44% said local restaurants, markets, or grocery stores are the first small businesses they will go to post-pandemic. How Projected 2020 Trends Panned Out Through The Year As with every year, trendwatchers had their predictions for the fads that would dominate restaurants in 2020, but no one could have predicted a pandemic would upend the industry. Here’s a look back at some of the projected trends from the start of the year and how they turned out at the end of the year. One of the top projections for 2020 was operators simplifying their menus to streamline their prep and highlight plant-based specialty items. This prediction did come true this year but took a different approach. Restaurants trimmed down menus to cut costs and improve their off-premise channels during dining room closures. Another 2020 trend prediction? Ghost kitchens. They were expected to expand with restaurant owners looking for partnerships to grow their delivery channels without disrupting in-store operations. This prediction took off, and then some, this year with many operators creating off-premise-focused models to survive through low costs and opportunities to expand their business that ghost kitchens offer. What’s Trending Top 2021 Food Trends As 2020 comes to a close, here are the top food trends operators should keep an eye on in the new year. Packaging: how it looks, the messaging, and the information it provides are taking center stage in 2021. With operators depending on off-premise operations to survive, they need to make sure that their food packaging is doing all of the talking and creating a brand image that differentiates them from the rest. In the time of COVID, gone is the appeal of homemade and handcrafted foods or drinks. Contactless is in and any adjective that portrays meals that have had minimal contact, such as bot-made or sanitation-verified, will become buzzwords that customers are looking for. At the beginning of the pandemic, restaurants quickly pivoted to take out or delivery to stay afloat and had little time to take into account the negative impact their food packaging may have on the planet. In 2021, consumers are looking for ways to undo some of the harm of using disposable products caused and want food packaging that does it all. Consumers want their meals to be packaged in containers that are easily recyclable, minimal, and don’t contain harmful chemicals that are bad for the environment or themselves. CDC Advocates For Restaurant Workers To Be In Early Round Of Vaccines The Centers for Disease Control and Prevention has recommended that foodservice workers be amongst those that fall under essential workers in an early round of vaccination distributions. Transportation, construction, finance, energy, and media employees are also included in this group. Workers that fall into this category would be in the second round of vaccinations after healthcare workers. There isn’t a projected timeline of how soon restaurant employees will have access to the vaccine but they must wait behind 21 million U.S. residents 75 and older and 30 million frontline essential workers. The essential worker prioritization for the vaccine is determined by state governments, so the accessibility of the vaccine to restaurant workers will differ across the country. The NRA & Delivery Companies Create A Guide For Lawmakers The National Restaurant Association worked in partnership with DoorDash, Grubhub, and Uber Eats/Postmates to develop Public Policy Principles for Third Party Delivery. These guidelines provide best practices for third-party delivery to inform lawmakers of the relationship between restaurants and delivery companies. This is the first time restaurants and third-party delivery companies have worked together to create principles that include food safety, transparency on fees and contracts, sales tax collection, and alcohol delivery. The unique partnership comes as both parties have experienced an uptick in delivery orders throughout the pandemic. "Until now, the relationship between restaurants and third-party delivery companies lacked a national framework to protect restaurants. This agreement represents an important first step in an ongoing dialogue between restaurants and third-party delivery companies about ways to improve our relationship going forward," Mike Whatley, vice president for state and local affairs for the National Restaurant Association, said to Restaurant Dive. Operators Deliberate Over Requiring Vaccinations Or Not As restaurant workers become the next group in line to receive the COVID-19 vaccine, after first responders and the elderly, employers are debating whether or not to require their employees to take the vaccine. In recent weeks, Chipotle Mexican Grill and Cousins Sub have announced they will not mandate their employees to take the vaccine but do encourage them to do so. The NRA has called for the cost of vaccinations to be covered by the government but has not made any recommendation that the vaccine should be required. Restaurant owners are taking into account the worries that some may have in the mistrust of the government and the quickness in which the vaccine was made. A spokesperson for Cousins Subs told Restaurant Business that the chain had concerns about intruding on the personal decisions of their employees and did not want to cross a line of invading employees’ medical rights. Most Popular Menu Items Of 2020 At the start of 2020, it was predicted that global cuisines, plant-based foods, and a boost in sustainability would be the top trends of the year. With the coronavirus affecting everyone’s lives and forcing restaurants to pivot to off-premise operations, the want for unique cuisines and reducing waste were put on pause. Instead, customers went for comfort foods and best selling items like chicken wings and pizza to get them through this tough year. Restaurants also got creative with how they offered their menu items and developed family-sized meals and meal kits to help ease the burden of families while giving them an activity during dining room closures. There was still a rise in plant-based foods and drinks this year with non-animal alternative proteins expanding into breakfast items. Also, oat milk as a dairy-free alternative has become readily accessible and its mention in menu items has increased 50% year over year, according to Technomic. Bright Spots In A COVID-19 World Barstool Sports Raises Money For Small Businesses Barstool Sports founder Dave Portnoy announced the Barstool Fund as a fundraiser to assist small businesses who have been affected by the pandemic. The company donated half a million dollars to the fundraiser and then challenged others to donate as well, resulting in over $8 million being raised so far. The Barstool Fund is committed to helping businesses on a month to month basis until they are in a stable financial position and is selling the restaurant’s merch off the Barstool website. So far, the initiative is supporting 30 businesses and continues to fundraise to support more businesses. “These people aren’t going out of business because they’re not successful or not making any money. It’s because they have no other choice. They’ve been dealt a hand that nobody can play,” Portnoy said in a Twitter video. Nurse Fundraises For Local Restaurants Julie Freeman, a nurse in Hamilton, Canada, started a fundraiser called Feast In The Hammer to help local restaurants and vulnerable residents during the pandemic. Freeman created a GoFundMe campaign to bring together local restaurants and charitable organizations by delivering purchased restaurant meals to families. The fundraiser has raised over $5,000 and provided meals to 30 families over the holidays. “The holidays can be such an uncertain time for so many, and with the added impact of the COVID-19 pandemic, I thought this would be a great way to support two important causes with one campaign,” Freeman said to Global News Canada. Quote Of Hope "What you see here is people showing you that boots on the ground works, that programs work, that they can uplift communities one meal at a time." - Chef José Andrés, restaurateur and founder of World Central Kitchen

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Stats Of The Week The State Of The Industry With 2020 coming to a close, the restaurant industry is set to end the year with more distressed businesses than it had during the Great Recession, according to a report from AlixPartners. As of October, 50% of limited-service restaurants and 63% of full-service restaurants were considered distressed. In comparison, at the end of the recession 33% of limited-service restaurants and 17% of full-service restaurants were at risk of permanently closing down. As PPP loans run out, a new round of restaurant restrictions loom and with little hope of federal aid until January, restaurant operators are put in a difficult position on what to do next. "The industry has really taken a beating. [For] independents, particularly the smaller independents, it's really been catastrophic," Edward Webb, advisory partner at BPM which specializes in accounting, taxes and financing, said to Restaurant Dive. NY Governor Rates Restaurants Fifth Source Of Infection Spread During a press conference on Friday, New York Governor Andrew Cuomo produced a chart showing the risks of COVID-19 exposure due to various activities. At the top of the list was household/social gatherings with 73.8%, healthcare delivery 7.8%, college students 2%, education employees 1.5%, with restaurants and bars coming in fifth at 1.4%. These numbers have restaurant advocates questioning why the governor is targeting restaurants and requiring them to close their dining rooms when they pose a lower risk compared to other institutions that are able to stay open. Brian Leydet, an assistant professor of epidemiology and infectious disease at the SUNY College of Environmental Science and Forestry, cautioned against reading too much into the apparently low 1.4% risk factor at restaurants. Leydet cites that any time a person takes off a mask it increases the risk of transmission. What’s Trending NYC Restaurants Forced To Shutter Indoor Dining Once Again Last Friday, NY Governor Andrew Cuomo announced that New York City restaurants must shut down their dining rooms starting December 14. This decision to further restrict restaurants came as the city is on the cusp of reaching 90% of its hospital capacity. Cuomo said during the press conference that the indoor dining ban is intended to avoid the broader shutdown which would mean completely shutting down all nonessential businesses. He also called on the federal government to come to a decision and give the hospitality industry financial relief. According to contract tracing data, Cuomo said that restaurants and bars are the fifth main source of new infections in the state of New York. Some argue that this data only comes from individuals who respond to contact tracers and is not reflective of every infection in the state. The NRA Presses To Give Restaurant Workers Early Access To Vaccine The National Restaurant Association and other restaurant-industry advocates are pushing federal and state officials to put restaurant employees at the top of the list to receive the COVID-19 vaccine. These groups argue that restaurant staff have been designated as essential workers and expected to risk their personal safety to provide food to their customers. Tom Bene, CEO of the NRA, argues that restaurants and other employees should be spared the cost of the vaccine and have the government cover the cost. Bene believes that vaccinating restaurant workers will help their guests feel more comfortable and safe and drive them to visit their restaurants. As a result, the industry’s workforce would add considerable momentum to the nation’s economic recovery. “We continue to suggest that, as an important industry, those workers should be part of the food-supply-chain workforce that gets vaccinated early. Whether that happens in every state or every situation, we don’t know yet,” Bene said during the Restaurant Recovery Summit held by Restaurant Business. NY Offers Restaurants A Free Digital Ordering Platform With recent indoor dining closures adding more stress on operators, NY Governor Andrew Cuomo has announced a new initiative in an effort to support the state’s restaurants. As a part of New York’s Empire State Digital Initiative, the state is offering Ritual’s commission-free digital ordering platform to restaurants called Ritual One. The platform adds no cost for pickup and delivery and is in place through April. Restaurants that take part in the initiative and join Ritual will have the ability to accept contactless payments through PayPal and Venmo. Ritual will waive setup fees, monthly subscriptions and credit card processing fees as a part of the program. Operators can customize their platforms to match their branding and integrate the platform with their restaurant’s point of sale systems. Restaurant Transitions To Reusable To-Go Packaging San Francisco’s Zuni Cafe is a farm-to-table restaurant that has been open for more than 40 years and has become a notable part of the local community. Zuni Cafe has partnered with Dispatch Goods, a startup that provides restaurants with containers, collects used containers, cleans them and returns them to the restaurant. Zuni is rolling the cost of the reusable boxes and bowls with silicone lids into its menu pricing. Customers are responsible for returning their empty containers to the restaurant or by texting Dispatch Goods to arrange a home pickup or can drop off the containers at their collection bins around the city. “Garbage is convenient. I keep telling my team, this is going to be inconvenient, relative to garbage. We’re asking people to take on more responsibility here. But everyone is familiar with the issue with landfills and plastics. We want to show what’s possible that this can be good for us, and good for the customer. Not only that we can do this, that we should do this,” Zuni Cafe Chef Nate Norris said to Eater. Food Delivery Platforms Raise Prices For Customers To Benefit Drivers After California residents voted in favor of Proposition 22, a ballot measure that exempts third-party delivery platforms from reclassifying drivers as employees, customers can expect delivery and other fees to go up. On Monday, Uber raised prices in California to add driver healthcare subsidies and other driver perks it promised as a part of the Proposition. DoorDash will make slight percentage increases to service fees on customer orders. Uber customers will be impacted differently, based on exact location and type of service. Food delivery bills in Los Angeles have increased by $0.99 and by $2 in San Francisco. Though customers will experience some price increases in their food orders, the companies say the costs are less dramatic than if the Proposition would have lost. Bright Spots In A COVID-19 World Domino’s Gives Employees Special Bonuses Domino’s has invested over $9.6 million to provide additional bonuses to over 11,500 company-owned and supply chain hourly team members and drivers. Eligible employees will receive up to $1,200 in bonus compensation. The pizza chain previously paid bonuses to hourly supply chain and corporate store employees during a 10-week period from March to May. They have also offered expanded sick leave benefits to their employees since the beginning of the pandemic. Domino’s is one of the few companies in the industry that has seen strong double-digit sales growth in the U.S. The company hopes these bonuses will help retain its corporate store employees and attract future potential employees. Local Fundraiser Surpasses Target Goal A crowdfunding campaign held by Bendigo Foodshare in New Castle, Delaware raised more than $55,000 for local restaurants and exceeded their initial goal of $10,000. With the help of local hospitality businesses, restaurants, and social enterprises the Cafes for Covid fundraiser aimed to provide meals to food-insecure families in the area. The cooked meals reached people directly impacted by the pandemic and allowed residents to experience new cuisines. The money raised was able to help 25 local cafes, catering companies, and local businesses provide 10,000 meals during the pandemic. "We do know the meals have been of value to many vulnerable people who had to self isolate during the pandemic, vulnerable women and children, multicultural communities and those accessing food relief for the first time," Bridget Bentley, manager of Bendigo Foodshare, said to the New Castle Herald. Quote Of Hope “Food is immigration. Food is health. Food is national security. Food is job creation. Food is economic growth,” Chef José Andrés, restaurateur and founder of World Central Kitchen

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Stats Of The Week The State Of The Industry According to data from the National Restaurant Association, 110,000 restaurants have either closed permanently or long-term with 10,000 restaurants closing over the last three months alone. The NRA surveyed 6,000 operators and found 87% of full-service restaurants saw a drop of 36% in sales revenue over the past three months and 83% of operators expect the next three months to be even worse. Their data showed that about 16% of the shuttered restaurants had been in business for 30 or more years. Of those shuttered restaurants, less than half of the operators say they plan to remain in the industry in any form in the coming months or years. “What these findings make clear is that more than 500,000 restaurants of every business type, franchise, chain, and independent, are in an economic free fall. And for every month that passes without a solution from Congress, thousands more restaurants will close their doors for good,” Sean Kennedy, the NRA’s executive vice president for public affairs wrote in a letter to Congress. Restaurant Industry Experiences First Job Losses Since April While the foodservice industry was able to slightly recover in the summer with drastic job gains, the Bureau of Labor Statistics reports bars and restaurants lost over 17,000 jobs in November. This marks a net loss of jobs for the first time in the industry since April. These job numbers are predicted to only worsen in the next few months as COVID-19 cases continue to reach record highs and states enact stricter dining room restrictions. New dining room closures will impact full-service restaurants the most which saw a 3.6 million loss in jobs from February to April. Full-service restaurants were only able to recover 2.4 million jobs from April through July. 58% of full-service restaurants said they expect a staffing reduction during the next three months. What’s Trending Operators Come Up With New Ways To Stay Open As if the restaurant industry hasn’t already shown its ability to prevail, operators yet again are coming up with innovative ways to survive as restaurant shutdowns are initiated once again. French employees are in a similar situation as the U.S. with the pandemic forcing them to work from home to prevent the spread of the virus. But, Elior, a foodservice provider at corporate locations, found a way to bring the corporate cafeteria to employees’ homes. Elior teamed up with i-Lunch, a tech startup, to create a platform that allows employees to experience their office cafeteria through an online platform. This gives companies the opportunity to continue to provide lunches for their employees while they are home to improve their work-life enhancement. In San Francisco, chef Anthony Strong closed his restaurant Praire in August to experience the wilderness and go camping. As he was off on his expedition, he came up with the idea to convert a VW van into a private dining room. He first revamped the inside of the van by installing banquettes and a table. Then, he hung an awning on the outside of the van with lawn chairs spread out around a cooler and camping stove. Strong’s “glamping menu” works by parking the van in a customer’s driveway and cooking a four-course meal off a charcoal grill. The menu includes appetizers, soup, grilled meat, a campfire-inspired dessert along with a glass of bubbly. Local Officials Challenge LA County’s Outdoor Dining Ban Last week, Los Angeles County enacted a ban on outdoor dining as the state hits record highs for COVID-19 cases and hospitalizations. The ban has been met with pushback by the California Restaurant Association (CRA) which has filed a lawsuit to reverse the ban. Also, a judge in LA County said officials must provide evidence showing a link between outdoor dining with the increase in local COVID-19 cases in order for the ban on outdoor dining to be upheld. CRA President and CEO Jot Condie wrote on Twitter that the order is arbitrary and unfairly targets restaurants without supporting evidence. The court’s decision on the ban is expected to come next week, but a ruling in favor of outdoor dining won’t supersede the regional stay-at-home order. Restaurants Adapt To Tech Innovations To Keep Up With Off-Premise Before the pandemic many restaurants didn’t depend on off-premise orders to stay afloat but, with coronavirus shutting down dining rooms, that all changed. Operators have quickly shifted to digital technologies to enhance their take out and delivery operations to survive during the pandemic. Chipotle has become a trendsetter by opening its first digital restaurant in November. The restaurant is half the size of a traditional restaurant and includes two entrances, one for customers picking up orders and another for delivery drivers. The digital kitchen has no customer-facing operations but differs from a ghost kitchen because it is open to customers with a transparent view into the kitchen to give the same sense of a small community that customers would typically get in a regular Chipotle. President-Elect Biden Proposes Grants For Restaurants During an economic roundtable, President-elect Joe Biden showed his support for providing restaurants with grants instead of loans. He said the restaurant industry affects the ability of the economy to continue to grow. Dan Jacobs, restaurateur, Independent Restaurant Coalition member, and the only small business owner on the panel, urged Biden to support the Restaurants Act that would establish a $120 billion grant fund to support restaurants and bars. The Act is co-sponsored by Vice President-elect Kamala Harris and passed the House of Representatives but has been stalled in the Republican Senate. Jacobs said during the panel that the Payment Protection Program loans have not been enough to financially support restaurants during the pandemic. The Popularity Of A Sweet Indulgence Grows During The Pandemic As the pandemic continues to affect everyone’s day-to-day lives, customers are turning to desserts to find a sweet escape. Yelp found that more than 1,500 dessert and sweet treat operations opened around the country in September alone. Doughnuts have reigned supreme for the top dessert trend and have been reinvented with new flavors and shapes. In Austin, TX, Bom Bakeshop has reworked their mochi into a doughnut-shaped sweet Japanese rice cake. Meanwhile, Fat Straws Bubble Tea Co. in Houston has converted its signature bubble tea beverages into pastries with the tapioca balls mixed right into the dough. Breakfast-focused restaurants are getting in on the sweet action with items like cinn-a-stack pancakes from IHOP that include cinnamon roll filling between layers of pancakes or Sugar Factory’s double stack rainbow pancakes topped with gummy bears, chocolate chips, and rainbow sprinkles. Bright Spots In A COVID-19 World States Provide Aid For Restaurants Many states are closing down dining rooms to combat the coronavirus but some are making efforts to assist restaurants while their on-premise operations are shut down. Wisconsin is offering $45 million in assistance to restaurants and other targeted small businesses affected by the pandemic. The program is called We’re All In For Restaurants and provides $20,000 for eligible businesses by the end of the year. Restaurants won’t need to apply and will be identified by the Department of Revenue based on tax records. Los Angeles will provide a one-time payment of $800 for restaurant workers that have lost their jobs due to the pandemic. LA County’s Secure Emergency Relief for Vulnerable Employees will be available to 4,000 former restaurant staff that have lost at least half of their salaries this year. Community Rallies Behind Local Chef Albert Cowan has been a notable chef on the Morehead City waterfront restaurant scene in North Carolina since the early 1960s. When news broke in the summer that he contracted COVID-19, his community prayed for his recovery. Now, a few months after Cowan recovered from the virus, he is still unable to work due to long-term effects of the virus. A few weeks ago, his community decided to set up a GoFundMe page for Cowan and his wife. So far, the fundraiser has raised more than $6,500 out of a $10,000 goal. Cowan’s sister, Miranda Newsom, spoke to Carolina Coast Online and said the love and support and the lovely comments of appreciation means a lot to her brother. The family hopes the money raised will help them pay for their living expenses for the next few months. Quote Of Hope “We go through our careers and things happen to us. Those experiences made me what I am.” - Thomas Keller, restaurateur and author

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Stats Of The Week The State Of The Industry Bars and fine dining experienced about a 90% sales loss since the beginning of the pandemic, according to Upserve’s State of the Restaurant Industry 2020 report. Since initial lockdowns, both of these segments have suffered the most compared to other food and beverage segments. Fine dining has recovered to declines of approximately 60% while bars remain down nearly 70%. Casual dining also experienced dramatic declines in March with sales volumes down by over 80% and has now recovered to declines of around 60%. The report showed the cities where the restaurant industry was most impacted by the pandemic include San Francisco, New Orleans, and Boston. The Northeast region of the country has been hit the hardest with major cities experiencing year-over-year sales losses of more than 65%. Analysts Predict A Less Dire Forecast For Restaurants Market analysts, Mark Kalinowski and Peter Saleh, recently issued reports that aim to project how hard the restaurant industry will be hit by the impact of the pandemic. With recent updates on expected restaurant closures looming, both analysts agree independent restaurants have been impacted the most compared to other segments. According to their calculations, the analysts predict mom-and-pops would permanently close around 7.5% of their units in 2020. Also, smaller restaurant chains that rank in the top 500 will likely permanently close about 4% of their units this year. The report shows one of the most striking effects of closures is large brands closing underperforming restaurants. McDonald’s closed 200 of its units in Walmart centers and Dunkin’ Donuts closed 450 of their units in Speedway convenience stores. “While we expect same-store sales to backtrack in November given the cold weather, virus resurgence, and lockdown restrictions in some markets, we don’t expect sales levels to fall below what is required to maintain positive cash flow. While we expect an elevated level of restaurant closures this year, we believe the figure will be in the high-single-digit range, far below dire forecasts of 30% or more closure rates that have circulated,” Saleh noted in a BTIG research report. What’s Trending Operators Question The Viability Of Ghost Kitchens Ghost kitchens were becoming a popular concept towards the end of 2019, but with the pandemic shuttering dining rooms this year, their standing has skyrocketed. With many restaurants struggling to stay afloat, they have turned to ghost kitchen concepts that are known for their low overhead costs and accommodate the current climate of take out and delivery-focused markets. Some still question the effects ghost kitchens will have on the restaurant industry and worry what the future will hold. Many show concern that ghost kitchens will result in the disappearance of physical restaurants and take away the restaurant experience for customers. They also fear if restaurants dwindle that the community will also. “I can see the appetite to sort of innovate in different models, but if we move away from those places of social gathering completely, we’re really looking at a fundamental change in the fabric of our communities. And the question is, what is that balance?” Sarah Crozier, communications director for small business advocacy group Main Street Alliance, said to Restaurant Business. What Foodservice Establishments Will Look Like Next Year With 2021 right around the corner, many restaurant brands are looking towards new concepts to drive sales during this unprecedented time. Creating a safe environment that also runs efficiently and engages customers is not an easy task especially for independents. Large chains including McDonald’s, Taco Bell, and Chipotle are investing in innovative digital channels for their drive-thru and curbside pickup services. They’re also catering to consumer demand for contactless and efficient off-premise experiences. Other chains such as Shake Shack are minimizing their dining rooms to provide more space for outdoor seating. It’s harder for independent restaurants to make such drastic changes to their establishments. Design experts predict that independents will incorporate forced air between seating areas and garage-style doors to help diners feel more comfortable while eating at their restaurant. Operators Get Creative With Marketing To Generate Holiday Sales Less traveling and less in-person shopping during the holiday season means restaurants will be experiencing less foot traffic than they’re typically used to at this time of year. As restaurants struggle to stay open, many are tapping into the holiday spirit to reign in customers and drive sales. The holiday season brings many opportunities for operators to get creative with menu items. For example, Starbucks creates seasonal beverages every year that have become extremely popular and helped them recover during the pandemic. Some restaurants are pivoting items they already offer and reworking them as gifts for the season. Dunkin’ Donuts started offering DIY Donut Kits at the beginning of the pandemic and is now marketing them as gifts for children during the winter. "Everybody wants to get through winter and everybody needs to do good holiday business to make that work. People are going to ask, 'How are we going to make this special?' and restaurants will need to answer that question," Jim Williams, CEO of menu management firm MustHaveMenus said to Restaurant Dive. Postmates Merges With Uber Eats On Monday, Uber Eats completed its acquisition of Postmates in a $2.65 billion all-stock transaction. This business deal has made Uber the second-largest food delivery provider in the U.S. behind DoorDash. The joining of these two companies has consolidated the food delivery industry under the three top players: Uber Eats, DoorDash, and Grubhub. Uber Eats and Postmates will still run as separate entities with their own apps and marketplaces but will combine their networks so restaurants that partner with Uber Eats will also become Postmates partners. Also, drivers will be able to obtain deliveries from both apps. In the new year, Uber and Postmates will begin integrating their services and will do a national “listening tour” to acquire feedback from partner merchants and learn about their needs. “I'm confident that alongside Uber Eats we will create even more opportunities for our customers, continue to drive growth for our merchants, and deliver unique earning opportunities for our Postmates,” Bastian Lehmann, co-founder and CEO of Postmates, said in a statement. Restaurants Pivot Operations For Holiday Party Season This time of year typically includes large holiday parties which in turn brings in large revenue for restaurants. But, as with every circumstance in 2020, this time it’s different. Operators aren’t able to rely on the increased sales they’re used to during the holiday season and have to pivot their operations to accommodate the new normal. Some restaurants are turning to virtual events so they can host corporate holiday parties, private social events, winter weddings, and other large gatherings. Other restaurants that have winterized their outdoor space are offering bookings for outdoor events with smaller parties that include family members or friends that are in the same “COVID bubble”. Instead of relying on large parties, some restaurants are amplifying their on-premise and off-premise operations by creating larger patios to offer more seating, creating new programs to engage customers, and upgrading their take out options with new menu items. Photo credit: DW labs Incorporated - stock.adobe.com Bright Spots In A COVID-19 World Celebrity Chef Wins $1 Million For Restaurant Relief Fund On the latest episode of “Who Wants To Be A Millionaire”, NY chef David Chang answered the final question correctly and became the first celebrity to win the big prize. Chang had pledged to donate his winnings to Houston chef Chris Shepherd’s Southern Smoke Foundation that created an Emergency Relief Fund for hospitality workers that have been impacted by COVID-19. Typical Southern Smokes grants are $2,000 which means that the $1 million contribution could potentially provide financial assistance to 500 individuals. “The real issue isn’t about me or restaurants, but the people who work the restaurants and the fact that they don’t have a safety net. Unfortunately, a lot of the assistance is being bogged down by politics. We need to be helping the people in need,” Chang said in an interview with USA Today. Locals Organize Gift Cards For Struggling Restaurants When Susan Brown, a Kentucky resident, heard the news that in-person dining was suspended in her town, she knew she had to do something. Along with Lyon County Judge Executive Wade White and other locals, they organized a fundraiser to give restaurant workers at seven different restaurants gift cards of $150 each. White said to WPSD Local that though he is unable to control state restrictions, he can still help his community in other ways. White believes during the holiday season these gift cards will help restaurant workers during tough times but it’s not the complete solution. "This is a season of giving, and in the spirit of the Thanksgiving holiday and Christmas holiday, we need to do this for the families," Brown said to WPSD Local. Quote Of Hope “I want to raise awareness for the restaurant industry. I was like, man, I want the world to see just what people in the industry could do,” - David Chang, the founder of Momofuku and host of "Ugly Delicious"

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Stats Of The Week The State Of The Industry As COVID-19 cases hit record highs across the country, a number of states are reclosing restaurant operations in an attempt to diminish the spread of the virus in their communities. Washington state has enacted a four-week restriction for the state limiting restaurants to offer only food for take out or delivery. California has announced restrictions for 41 of its 58 counties to limit restaurants to take out, delivery, and outdoor dining only. The Navajo Nation, located in parts of Arizona and New Mexico, has enacted the strictest guidance of any community in the U.S. by prohibiting visitors on the reservations and their residents are to shelter in place for the next three weeks. The city of Philadelphia is closing all indoor dining operations from November 21 to January 1. Michigan is also reclosing restaurant dining rooms and suspending indoor bar services for at least three weeks. Chicago is entering another stage of lockdown with its residents advised to only leave their homes for essential purposes, but restaurants and bars will still be able to operate through food delivery, take out, and outdoor seating. On Sunday, the U.S. hit a record of 11 million total cases from the beginning of the pandemic, according to Johns Hopkins University. Operators must begin preparing their establishments and employees for potential dining room closures for the next few months and pivot their business to strategies focused on take out and delivery. RW Poll Results This week we checked in with our social media followers to hear their thoughts on how the industry is doing at this point of the pandemic. When asked if restaurants were open for dine-in service where our followers live, 67% said they were while 33% said they weren’t. With many states reinforcing stricter guidelines and restricting dine-in services, 68% of respondents said closing or limiting indoor dining makes sense and 32% said they don’t agree with the restrictions. As restaurants experience dining room closures, many have focused on their delivery and take out operations to stay open. 70% of our followers said they order food for pickup or delivery directly from restaurants rather than through a third-party app. Of all of the innovative actions implemented throughout the pandemic, 71% voted curbside pickup as their favorite innovation and 29% voted for to-go cocktails. What’s Trending The NRA Fights To Keep Dining Rooms Open The National Restaurant Association is pressing governors to reconsider closing dining rooms after arguing that there isn’t credible evidence to link food and beverage places to widespread infections. In a letter addressed to the National Governors Association (NGA), Tom Bene, CEO of the NRA, wrote that restaurants have become a convenient scapegoat for reflexive shutdowns. Governors that have initiated new restrictions in their communities have cited studies from Stanford University that identified restaurants as “super-spreaders” and a study from the CDC that found patients that contracted the virus were more likely to have recently eaten at a restaurant. “We continue to support aggressive steps to protect the nation’s public health, but there is an unfounded impression that restaurants are part of the problem, and we are suffering as a result of inconsistent, restrictive mandates. Tens of thousands of additional restaurant bankruptcies—and millions of lost jobs—are now more likely, while the science remains inconclusive on whether any health benefits will accrue,” Bene wrote in a letter to the NGA. How Dining Room Closures Will Look Different This Time Around As states continue to see a drastic rise in COVID-19 cases, the possibility of dining rooms reclosing seems highly likely. Though restaurants will find themselves in the same position as in March and April, with no indoor-dining operations, the second wave of shutdowns is expected to look much different than the first. At the beginning of the pandemic, restaurants were required to immediately shut down any on-premise operations and strictly offer food for only take out or delivery. This time, it is predicted that while dining rooms are closed, restaurants will still be able to continue with outdoor seating along with take out and delivery. Even if states don’t completely close in-person dining, they will most likely lower capacities in an effort to diminish the number of people gathering in one setting while allowing restaurants to continue to recover from the early effects of the pandemic. Also, you can expect health measures enacted to combat the virus to be highly enforced. With most citizens experiencing pandemic fatigue after 8 months, local officials will be cracking down to ensure residents follow the rules initiated. In New York, Governor Andrew Cuomo has set up a hotline where customers can report a restaurant or bar that is violating any restrictions and that establishment runs the risk of losing their liquor license. Over the past week, state officials have been implementing a more clear-cut timeframe for shutdown orders, whereas in March much about the virus was still unknown, now most health officials agree that a case of coronavirus runs about three weeks which follows many states’ shutdown orders. Small Chains Grow Business Through Ghost Kitchens With 2020 being the hardest year for the restaurant industry, the desire of expanding business became a far-fetched idea, but then the ghost kitchen boom happened. Small chains and independent restaurants were hit particularly hard with limited capacities bringing in just enough to stay open. Ghost kitchens have become such a popular option for small businesses because of the low cost and ability to expand the customer base. Mendocino Farms, in Los Angeles, had plans to open another restaurant in Long Beach, CA but after the effects of the pandemic and having difficulties finding real estate in the city, the circumstances were not in their favor. Until, the CEO of the upscale sandwich and salad chain, Kevin Miles, found a multibrand ghost kitchen facility in Long Beach. The restaurant recently opened its first location there and sees this as a way to break into new markets and reinforce existing ones. “We believe this is an opportunity for us to get our food there, but our test first and foremost is being able to execute on the quality. If that works, we’ll be looking actively in the California market [to open more ghost kitchens],” Miles said to Restaurant Business. Sysco Removes Minimum Requirements To Help Independents Sysco, the country’s largest restaurant distributor, announced they will be eliminating minimum delivery size requirements to assist its restaurant customers. This announcement comes as restaurants are expected to endure a difficult winter with the weather eliminating outdoor dining in some areas and the spike of COVID-19 cases potentially shutting down some restaurants. Beginning next week, Sysco customers will no longer have to reach a certain amount of product to be eligible for deliveries. The company hopes removing the delivery requirements will bring relief to operators and will particularly help independent restaurants that could see steep declines in demand in the near future. “We remain vigilant in the current environment, as new restrictions on our customers in the second quarter are stalling the recovery at approximately minus-20% compared to the prior year, with potential for worsening results due to additional COVID restrictions,” Kevin Hourican, Sysco CEO said, according to a transcript from Sentieo. Restaurants Prepare For Thanksgiving Though Thanksgiving will look very different this year, the one thing that won’t change is the food. Due to the CDC’s recommendations for scaled-down celebrations this year, many people may not be surrounded by those who make their favorite entrees or side dishes. Restaurants are stepping up to fill those shoes with their own family-sized Thanksgiving specials. Buca di Beppo is putting an Italian twist on classic Thanksgiving dishes with Italian sausage stuffing, roasted garlic mashed potatoes, turkey, and more with meals of various sizes that can feed up to 20 people. Boston Market is offering ready-to-serve meals that include a whole turkey with a selection of sides. Cracker Barrel is offering meals with all fixings including turkey, gravy, green beans, rolls, sweet potato casserole, and more. Popeyes is even getting in on the Thanksgiving action with participating locations providing Cajun Turkey that is marinated in Popeye’s signature blend of Louisiana seasonings then slow-roasted and flash-fried for added crisp. Bright Spots In A COVID-19 World Locals Step Up To Save Beloved Restaurant With dining room reclosures and winter weather looming, Tom and Geri Foley, owners of Broadway Cellar in Edgewater, IL, found themselves in a similar position they were in at the beginning of the pandemic. When word got around their community that the restaurant was struggling, neighbors came to the rescue and started a GoFundMe page. In less than two weeks, locals raised $18,000 for the neighborhood bistro. The Foleys said to Block Club Chicago that they believe those donated funds will help their restaurant survive and allow them to stop taking money out of their savings. “Every day we look [at the GoFundMe], we both get emotional. The outpouring from the neighborhood, it’s overwhelming. It will allow us to wait until another stimulus. That’s our hope,” Geri Foley said to Block Club Chicago. Thanksgiving Fundraiser Goes Virtual This Year Community Servings, a nonprofit provider of medically tailored meals and nutrition services, has turned its annual community bake sale fundraiser to a virtual fundraiser this year to adhere to COVID-19 safety guidelines. The 28th Pie In The Sky fundraiser helps generate funds to help feed chronically and critically ill neighbors across Massachusetts. The pandemic made the fundraiser organizers reassess their practices by implementing a streamlined baking and boxing process and creating a touchless distribution plan. Those who make a $30 donation will receive their choice of a fresh-baked apple or pecan pie, while supplies last, to serve at Thanksgiving. Each $30 donation covers a week’s worth of healthy meals for one of Community Servings’ clients living with an illness such as HIV/AIDS, cancer, heart disease, or diabetes. Quote Of Hope “I think one positive thing we’ll see is that diners will have a greater appreciation for the hospitality industry and what goes into making and serving food. I believe that with more people cooking at home now and doing the work, it will be a nice reminder. I think they’ll have an even deeper respect for the profession once the pandemic is over.” - Michael Schulson, chef and restaurateur of Schulson Collective in Philadelphia

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Stats Of The Week The State Of The Industry A new report predicts that next year the U.S. restaurant industry will turn from a negative to a stable industry, according to an updated Moody’s report emailed to Restaurant Dive. The report credits the status change to loosened capacity restrictions and consumers feeling more comfortable dining out in the next 12 to 18 months. Though the change is predicted to be slow, the report expects profits to rise by about 15% in 2021. Quick-service restaurants are projected to outperform casual dining restaurants with drive-thru and mobile ordering driving sales. This year, profits have fallen by more than 30% and the news of a stable status is unexpectedly welcomed news to an industry that has been struggling to stay afloat for the majority of the year. Restaurants Rely On Third-Party Apps During The Pandemic As COVID-19 cases continue to fluctuate throughout the year, restaurants have turned to third-party food delivery apps to increase their off-premise operations. Nearly 40% of restaurant operators said they would not have been able to stay in business during the pandemic without their third-party delivery partnerships, according to a new study by Raydiant. 28.8% of respondents say those apps now make up between 21% to 30% of their sales. Though restaurants have become dependent on third-party apps, many have criticized these services for charging high fees and using untrustworthy tactics. The survey shows that 58% of respondents trusted DoorDash most of all food delivery apps with 18% trusting in Grubhub and 17% in Uber Eats. What’s Trending States Begin Pausing Or Reversing Restaurant Reopening Plans San Francisco had planned to increase restaurant capacities from 25% to 50% on November 3, but that has been put on hold indefinitely due to the recent rise in positive COVID-19 cases. Los Angeles health officials cited the decision due to finding that 10% to 15% of cases in the county were tied to a dining experience. LA county only offers outdoor dining but neighboring counties do allow indoor dining at limited capacities. Chicago has also halted indoor dining and bar services after previously raising capacity to 40%. New York City has begun reducing or even shutting down indoor dining in some neighborhoods to prevent the spread of the virus. Colorado, Idaho, New Mexico, and Massachusetts are included in the number of states reversing original reopening plans. A Ghost Food Hall Could Be The Dining Experience Of The Future After the first weekend of restaurant closures in Washington D.C, restaurateur Aaron Gordon pivoted his operations to only take out and delivery and brought in 80% in sales. Gordon thought this was a fluke and told Restaurant Dive that he was sure he was going to be in big trouble the following weeks. Thanks to his supportive customers and neighbors, the following weekend his sales were 90% of what they were in 2019, the next weekend he reached 100% of sales and even reached 105% the next weekend. Gordon then thought to invest in an available 2,000-square-foot former bar and turn it into a ghost kitchen food hall. Six months later, he opened Ghostline with six restaurant vendors that offer outdoor patio seating and food for take out or delivery. Gordon did not find it hard to find chefs to partner with as many were looking for ways to keep their business afloat. The Ghostline model also alleviated third-party commission fees that were weighing down many restaurants and launched its own delivery program. The ghost food hall has seen much success and is even considering adding additional menus for guests. "This idea is really nice because we’re prepared both to [outlast] a two-to-four-year pandemic if need be, but we’re also in a pretty good place [with] our patio. So pandemic or no pandemic, we’re offering something for everyone," Gordon said to Restaurant Dive. Restaurants Plan To Winterize Their Establishments, But At What Cost? While many states are suspending restaurant reopening plans, restaurants are planning ways to keep their outdoor dining services open despite a looming winter. Coronavirus cases have been spiking across the country and outdoor dining will become even more important as indoor capacities become more limited. A survey of 400 restaurants found that 50% of participants are planning to invest in winterizing their outdoor areas in the coming months, according to Rewards Network. The majority of respondents believe diners will be “very” or “somewhat” willing to dine outdoors during winter. Many restaurants are weighing their chances of survival as winterizing their establishment comes at a cost. Purchasing tents, heat lamps, blankets, and other tools to help keep customers warm brings much for operators to consider while planning for the next few months. How Restaurants Incorporate Innovate Cleaning Technologies Once the cleanliness of restaurants became a top priority for customers during the pandemic, operators had to step up their cleaning procedures and sanitation practices to meet the expectation of consumers. This spurred a series of innovative cleaning tools that restaurants have been utilizing for months to keep their establishments safe and sanitary. UVC lights have become popular because the light emitted effectively kills some virus particles and pathogens while being safe for human exposure. Many restaurants have installed these bulbs into their light fixtures to sanitize rooms. Operators are also utilizing hospital-grade disinfectants to wipe down high-touch surfaces and aerosols to kill any bacteria in the air. For outdoor and indoor dining, operators have invested in more fans to help increase air circulation in an effort to reduce the spread of the virus. “Best-case scenario, we’re out of this mess by next June and if you look at the history of these viruses, we’ve had multiple scares over the past 15 years. This investment was for our employees and communities. Even when the pandemic is over, we’re still going to keep the lights in place for flus or anything else that might come along,” Tom Nye, Blind Horse general manager and winemaker, said to Restaurant Hospitality. LA Proposes A COVID Fee To Help Restaurants Last week, Los Angeles county supervisors introduced a “COVID-19 recovery fee” to help restaurants, breweries, and bars. The proposed fee would only be applied to dine-in customers as a surcharge and would not apply to take out and delivery orders. Restaurant owners show mixed feelings about adding additional fees to already wary consumers. Chad Colby, chef and owner of Antico, said to Eater that he doesn’t think raising menu prices is good in this climate because there’s competition to keep prices low, but that restaurants are in dire need of additional assistance. Some operators believe adding a COVID tax will discourage customers from choosing to dine in when they are already hesitant about the health risks. Others see the tax as an opportunity to pay for protective gear and other overhead costs. The Department of Consumer and Business Affairs is looking to see if this idea is practical and will announce their final decision on November 24. Bright Spots In A COVID-19 World Local Chef Provides Healthy Meals For Free The Free Healthy Hot Meals restaurant provides free healthy, soul food for those in need and affected by the pandemic. The restaurant is located in West Garfield Park, a neighborhood in Chicago that has been one of the hardest hit by the pandemic. Many businesses shut down over the summer leaving it difficult for many residents to find healthy and affordable food. Founder Jermaine Jordan funds his establishment through money donated from the restaurant’s GoFundMe page. His team gives away about 600 meals a day and even provides hotel accommodations to those experiencing homelessness who have been infected by the virus and need to isolate. A typical menu at the Free Healthy Hot Meals restaurant includes baked chicken, pot roast, potato salad, fresh veggies, beans, and rice. Twice a week, Jordan cooks barbecue ribs. For dessert, Jordan makes peach cobbler and banana pudding. App Offers Deal To Help Out Restaurants The Massachusetts Restaurant Association and a rewards company called Seated are working together to encourage diners to eat out on slow days. The initiative called Eat Out to Help Out MA is a rebate program for customers to make a reservation to participating restaurants every Monday through Wednesday through Seated’s app. Customers will get a 50% rebate on their bill in the form of Seated Rewards that can be redeemed for credit with brands like Amazon and Starbucks. The program is free for restaurants and is intended to give them a boost through usual slow days. Quote Of Hope “All of us are competitors, but we are all in the same boat. And at the end of the day, we all feed people. We’re crazy. This is what we do. We’ve been through the fires and floods and earthquakes. And this community comes together to support each other.” - Ken Frank, chef and owner of La Toque and a Grand Award winner

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Stats Of The Week The State Of The Industry According to a recent Yelp report, in the months of August and September, 6,600 new restaurants and food businesses opened. These business openings are comparable to similar volumes between 2019 and 2018. Overall new restaurant openings in the third quarter of 2020 were down 10% compared to the same time last year. September showed a large increase in reopenings with 210,000 businesses reopening in the third quarter that were previously closed. The report shows a surge in outdoor dining during the summer months helped bring many restaurants back. The amount of Yelp restaurant reviews with outdoor dining doubled in the third quarter of the year. Restaurants Enhance Off-Premise Operations In Response To Restrictions With dining room closures preventing restaurants from being fully operational, many strengthened their delivery and mobile capabilities to bring in much-needed revenue. 86% of franchisee respondents offered delivery and online ordering prior to the pandemic and 72% have incorporated enhanced measures to off-premise channels since the pandemic, according to a TD Bank survey. Restaurant owners are planning for the long-term with the end of the pandemic being unknown. In 2020, 63% of franchisees planned to invest in delivery compared to 12% in 2019. Also, 63% of respondents planned to invest in mobile ordering this year versus 25% in last year’s survey. What’s Trending How Winter Will Affect Restaurants After restaurants started to recover during the warmer months, the upcoming cold weather may put a stall to any industry gains. Winter will eventually eliminate outdoor dining in states that reach exceptionally low temperatures, but a shift in consumer spending to take out may help keep them afloat. Since March, the industry has recovered $25.6 billion in monthly sales but remains 14% lower than where it was last year, according to recent federal data. With the combination of the cold weather and a spike in COVID-19 cases, recovery has slowed with some local officials reinstating dine-in restrictions. Consumer spending is projected to shift from less on travel and more on holiday furnishing and decor, according to the Deloitte holiday retail survey. The state of the economy also is going to play a role with 40% of shoppers expecting to spend less this year due to money concerns. For winter, restaurants need to focus on take out and delivery and figure out ways to accommodate capacities in a safe manner. Ghost Kitchens May Be The Answer To Keeping Independents Going Many chains have been developing ghost kitchens as another revenue stream, but independent operators are turning to ghost kitchens to survive. Independents are turning to ghost kitchens because they’ve either been forced to close all on-premise operations or their off-premise business hasn’t generated enough to remain open. The main reason ghost kitchens have become so popular is because of their low cost which has been a major concern for independents during the pandemic. Ghost kitchens or virtual brand spaces pay less for occupancy, labor, equipment, and more. “Ghost kitchens are not the solution, but they are certainly one solution for restaurants that are looking to lower expenses and avoid uncertainty around reopening because of their lower overhead, we predict that ghost kitchens are here to stay,” Krystle Mobayeni, CEO and founder of BentoBox said to Restaurant Dive. Customers Show Support To Restaurants During The Pandemic While restaurants adapted to their new way of life during the pandemic, a new and innovative playing field emerged as a result. Ghost kitchens are on the rise and prioritizing take out and delivery has never been more important. A new study shows that customers are supporting restaurants’ efforts and shifting their buying habits to work with restaurants. 23% of participants expect to continue ordering more take out and delivery even when we reach post-pandemic times and 46% say they don’t believe they will change their overall dining habits they adopted during the pandemic. 62% of respondents say their main reason for buying meals from a restaurant is the convenience, according to a Deloitte study. “Restaurants that emerge from this unplanned inflection point in the industry’s history will be set up to provide a new standard in customer convenience, responsiveness, and safety that can pay off long after the tumult of this pandemic is over,” Jean Chick, a Deloitte principal said to Restaurant Business. How To Build Consumer Trust Post-Pandemic With the dangers of the pandemic on the top of everyone’s mind, consumer priorities have changed from taste and convenience to health and safety when it comes to dining out or ordering in. The pandemic has exacerbated consumer awareness of a restaurant’s cleanliness. Many customers say a restaurant’s sanitary practices are a major factor when deciding where to dine. Datassential surveyed customers and asked which brands made them feel safe. The survey found that Chick-fil-A, Cosi, Cotton Patch Cafe, Cheesecake Factory, Maggiano’s Little Italy, and World of Beer were among the top restaurants that gave customers the perception of zero risk. Chick-fil-A held the highest rank for making customers feel safe with customers stating that they trust that the chain is sanitizing frequently and maintaining high safety standards. Customers Get The International Experience Through Menu Items While everyone’s travel plans were put on hold for the year, restaurants are incorporating international flavors into food and drinks to help give customers a taste of being on vacation. A popular trend has been offering global cuisines for take out and delivery and adding ingredients that would traditionally be found in food being added to drinks. According to data from Technomic, bartenders and chefs are playing around with popular ingredients including Asian shishito peppers, saffron, gochujang, harissa, and seaweed in both meals and beverages. Bright Spots In A COVID-19 World Restaurant Group Creates An Inspirational Video With Local Independents Giardino Gourmet Salads has 14 locations in Florida and has worked with the owners of their franchisees to help them out during the pandemic. Owners Ody and Kenny Lugo said before they knew it they became an accountant, a lawyer, and a doctor in any situation that was needed to give answers to franchisees. During the COVID-19 crisis, the owners have prioritized safety and even when their governor lifted all restrictions in the state, nothing changed for them. Ody Lugo said to Nation’s Restaurant News they would not compromise the safety of their staff or customers at any point. In the middle of the pandemic, the owners contacted local businesses to create a video that would show customers the faces behind each small business. Though these restaurants are competitors, each one participated and helped create the feel of a community from a distance. The video went viral and was even showed on NBC news. Local Chefs Host Virtual Event For Food Pantry Fundraiser The West Suburban Community Pantry in Woodridge, IL typically hosts an in-person fundraiser to help raise money and reach their mission of creating a community without hunger. This year their annual event went virtual with the help of local chefs hosting video calls and instruct cooking classes. Nearly 300 guests participated in the event and the organizers nearly doubled their goal and exceeded the amount raised from last year’s event. “At a time when so many are in such need, it is gratifying to know that we have the support of the community. We could not have made this happen without the support of sponsors, the restaurants, caterers, bakeries, wine merchants, and the many people who attended,” Jeff Sietz, Board of Directors said to Patch.com. Quote Of Hope “The restaurant and hotel industry will continue to adapt and evolve against adversity. The restaurant concept of tomorrow will be focused on the technology of the future.” - Junior Therriaut, General Manager of About Last Knife in Chicago, IL

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Stats Of The Week The State Of The Industry Even though restaurant sales are trending higher, September showed the slowest growth since the economy began reopening and loosening lockdown restrictions, according to the NRA. Data from the U.S. Census Bureau shows that food and beverage establishments registered sales of $55.6 billion in September. This results in restaurants still remaining $10 billion below their pre-coronavirus levels. Data shows that consumer spending has picked up in retail sales which suggests consumers may be shifting their spending away from restaurants. In September, food and beverage sales fell well behind the sales gains at clothing stores, department stores, sporting goods, hobby and book stores, and motor vehicle dealers. How Winter May Affect The Industry With winter on the way, the restaurant industry is preparing to withstand the next upcoming storm this year. A new report from Gusto shows that this winter has the potential to erase the 2 million job gains from September and August. Many of the modest summer gains came from businesses adapting to restrictions and establishing outdoor dining options. In the colder months, this option will no longer be viable for most of the country. Retail trade and leisure and hospitality are expected to be the industries negatively impacted the most. From New England to the Pacific Northwest, the report predicts businesses located in an area where the average temperature drops to below 50 degrees are at risk. What’s Trending 2020 Restaurant Expectations Vs. The Reality Of What The Future Holds Projections from the NRA showed that 2020 was expected to be a prosperous year for the restaurant industry with sales reaching $899 billion. Now, 10 months into the year and 7 months into a pandemic, those projections are nowhere near being reached. With the impact of the COVID-19 resulting in the worst economic crisis on record, the restaurant industry is expected to lose $240 billion in revenue, Hudson Riehle, senior vice president of the research and knowledge group at the National Restaurant Association, said at the Main Street Strong conference. In pre-pandemic times, 51% of food spending in the U.S. went to restaurants, but now only captures 45% of food spending. Riehle said with the current weak employment and weak income growth, industry sales will be modest compared to what the economy was like before the pandemic. Though many consumers are going out less, the demand for getting the dining out experience is high. Digital food ordering is on the rise with one out of five orders being digital compared to one out of 20 orders before the pandemic, according to Riehle. Many operators are counting on off-premise sales to stay afloat but are still wary of what the future holds. "2021 certainly isn't a rebound to [a] prosperity year. The uncertainty and weakness will continue, both in the industry and the national economy," Riehle said. Touchless Technology Takes Off In QSRs With restaurants utilizing QR codes to show menus and GPS tracking for curbside pickup, contactless technology has propelled and become a necessity during the pandemic. QR codes had been around for years, but never used to their full potential. Customers at Tocaya Organica, a chain serving Mexican food in California and Arizona, can point their phones at the QR codes on each table, pull up the menu, and order right through their phones. The quick-service restaurant has implemented unique QR codes for each table so servers are able to easily bring the correct orders. El Pollo Loco, a fast-casual grilled chicken chain, has established geo-tagged curbside pickup at 95% of its 480 locations. Andrew Rebhun, the chain’s vice president of digital, said they had planned for curbside pickup in 2021, but once the pandemic hit, their team worked to launch the service through El Pollo Loco’s app in the summer of 2020. White Castle is taking technology a step further by testing out a robot that flips burgers known as Miso Robotics’ Flippy the robot. It operates at the fry station above the fryer and monitors the oil to create consistently cooked and portioned meals. Restaurants Face Off With Local Officials As COVID-19 cases start to spike again, operators in many states are challenging the response of their governors. Restaurant groups in Pennsylvania are demanding state lawmakers to override Governor Tom Wolf’s veto of legislation that guarantees indoor dining capacities cannot go below 50%. The initial legislation would allow establishments to use more than half of their indoor dining rooms as long as they have physical barriers and meet safety requirements set out by the CDC. Last week, tavern owners in Wisconsin successfully sued to halt Governor Tony Evers’ rollback of indoor dining and drink service to 25% from 50%. 12 establishments in West Virginia have sued Governor Jim Justice for closing down bars in Monongalia County that is home to a number of colleges and a large student population. Chains Develop Drive-Thru & Take Out Only Models As off-premise sales soar during the pandemic, chain restaurants are pivoting their models to adapt to the current climate and satisfy customer needs. P.F. Chang’s opened its first of three P.F. Chang’s To Go locations in NYC. Part of the company’s plan to open another 12 to-go locations is to reach more of an urban population across the country. Before the pandemic, along with P.F. Chang’s, IHOP, Famous Dave’s, and Firehouse Subs were testing smaller format stores that have only been accelerated with dining room closures. Del Taco is also in the final stages of developing a new drive-thru only restaurant that will include a modernized design. Trending Menu Items During The Pandemic With COVID-19 changing every aspect of restaurant operations, chefs are adapting their menus to showcase their strongest meals that can easily be enjoyed on the go. According to Nation’s Restaurant News Menu Trend Expert Nancy Kruse, vegetables are the hottest item on menus. Cauliflower continues to be a successful alternative for customers that are looking for a healthier option to fit their lifestyle. Next are meals that feature ingredients from all over the world. International cuisine gives customers the ability to try out new flavors that they wouldn’t otherwise have access to. In the current climate, some restaurants are offering grocery items and have seen much improvement in sales. Including grocery staples have allowed budget-conscious customers and restaurants to work together to find affordable ingredients while making a profit. Bright Spots In A COVID-19 World Fine Dining Restaurant Becomes A Community College Throughout the pandemic, Seattle’s fine-dining restaurant Canlis transformed itself into a burger shack, a bagel shed, packaged its high-end entrees for home delivery, turned into a virtual bingo hall, hosted a piano livestream, became a drive-in movie theater, sold produce boxes from farmers, and launched an outdoor crab shack. Now, it’s taking on its most ambitious venture yet: turning into a non-profit community college. The Canlis Community College is going to be hosting livestream classes on food, wine, history, and social studies. They will also be offering classes on-site with socially distanced field trips, life skills classes, with even a campus store and intramural sports. 11,000 people have paid $25 to enroll and gain access to the educational content so far. Canlis is using the tuition to pay off its mortgage, utilities, and reduced staff. After they reach the break-even point, the remaining money will be donated to a local hunger relief and job training organization. Chefs Collaborate To Boost Business As months passed and the coronavirus crisis didn’t seem to be ending any time soon, Rohini Dey, owner of Vermilion restaurant in Chicago, invited 16 female restaurateurs to join a virtual brainstorming session called Let’s Talk. The group aimed to share ideas, resources, and support with one another to help keep their businesses afloat. In October, the group created a four-week dinner series called FLAVOR which included four restaurants a week to join forces and curate a four-course dinner to go. Customers would pay $55 for either pickup or delivery. Each restaurateur brought their own skills to the table with one using her connections with the James Beard Foundation for marketing support and another tech-savvy member brought in a delivery partner to help deliver meals. “All the planning was virtual and we got this off the ground in two weeks,” said Mary Nguyen Aregoni, chef-owner of Chicago’s Saigon Sisters and one of the participants to Restaurant Business. “Everyone came together without competing against each other and we built great camaraderie.” Quote Of Hope “Fine dining is the most ultimate expression of caring for another person. In my world, it’s the greatest form of restoration and people will need that. They’ll need that again.” - Brian Canlis co-owner of multiple James Beard Award-winner Canlis

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Stats Of The Week The State Of The Industry A recent report from the U.S. Bureau of Labor Statistics shows that leisure and hospitality employment improved in September while the food and beverage employment remained 2.3 million jobs under levels in February. Bruce Grindy, chief economist for the National Restaurant Association, said that the restaurant industry saw healthy gains in the immediate aftermath of the government-mandated lockdowns but had seen job growth slow in August. Grindy said in a report that eating and drinking places added a net 133,600 jobs in August after adding nearly 3.5 million jobs during the previous three months. The report showed in August that staffing gains tapered off in 14 states with the top states experiencing the largest amount of restaurant job losses as California, Florida, New Mexico, Tennessee, South Carolina, and Alaska. States Differ On Whether To Reclose Or Reopen As COVID-19 cases spike again in most states, each state has had its own plan of how to combat the virus and is deciding whether or not to extend or restrict businesses. New York was once the epicenter of the pandemic and successfully lowered their positivity rate to below 1% for weeks through strict guidelines. Now, 20 ZIP codes in the state, including Queens and Brooklyn, have become hotspots in the state with a positivity rate of 5.8%. These segments of the state have reverted to schools closing and restaurants moving back to only take out or delivery. However, other states are gradually loosening restrictions and some are operating at full capacity. San Francisco has become one of the first California counties to reopen indoor dining at 25%. Texas has reopened bars and Washington is increasing capacity restrictions. Indiana and Florida have allowed all restaurants and bars to open at 100% capacity. What’s Trending NY Officials Cause Confusion Over Shutdowns After just eight days of restaurants in NYC being able to offer indoor dining since April, some restaurants were required to go back into quarantine mode and only offer take out or delivery. NY Governor Andrew Cuomo created a new “Cluster Action Plan” that segments the state in red, yellow, or orange zones. Restaurants in the red zone are not allowed to seat customers for indoor or outdoor dining, the orange zone allows a limited number of customers for outdoor dining only, and the yellow zone allows customers for both indoor and outdoor dining at limited capacity. Governor Cuomo and NYC Mayor Bill de Blasio clashed with their plans to shutdown segments of the city. De Blasio originally issued that restaurants in certain ZIP codes must close which Cuomo rejected citing that the model was not targeted enough. “I did hear from some restaurants that they believed they would have been shut down over the zip code strategy but are able to stay open fully or at a more limited capacity, not a full shutdown, because of the zone strategy,” Andrew Rigie, executive director of the New York City Hospitality Alliance, said to Restaurant Dive. The Top Ways Diners Are Ordering Food At the beginning of the pandemic restaurants and diners had to adapt to life without dining in as an option. Now, more than six months into the COVID-19 crisis and restaurants reopening dining rooms, customers still prefer off-premise options and digital ordering rates are slowing down compared to earlier in the year. Research shows delivery orders are split between customers placing them directly through a restaurant or a third-party service and Gen Z continues to order through online channels. Though the majority of states are allowing restaurants to open their dining rooms, research from Technomic shows off-premise options are the more popular option. Drive-thru leads the way with 68% of consumers were most likely to use it, followed by take out with 63%, and curbside pickup with 48%. Digital orders are slightly decreasing due to more people choosing to dine in. In April, digital orders accounted for 20% of restaurant visits while in August, digital orders dropped to 17%, according to The NPD Group. Earlier in the year, when restaurants only had the option to offer take out or delivery, many created online ordering through their channels to help streamline the process and avoid hefty charges from third-party companies. Customers have taken notice of this shift. Recent studies show that ordering directly from a restaurant is just as popular as ordering through a food delivery service. In July, 43% of consumers ordered directly from a restaurant while 37% ordered from a third-party food delivery service, according to research from The Manifest. Gen Z consumers are most likely to order online for pickup or delivery with 9% of the younger generation ordering via an app or website compared to 6% of overall consumers, according to research from Technomic. The SBA Launches An Easier PPP Loan Forgiveness Application Last Thursday, the Small Business Administration reduced its loan forgiveness application for PPP borrowers from 12 to 2 pages. This new design is targeted to streamline the application process for small businesses that borrowed less than $50,000. Borrowers are now required to provide fewer calculations and less paperwork to be approved for loan forgiveness. The covered loan period is close to ending and this consolidated version is designed to make the forgiveness process easier for both borrowers and lenders. “We are committed to making the PPP forgiveness process as simple as possible while also protecting against fraud and misuse of funds. We continue to favor additional legislation to further simplify the forgiveness process,” U.S. Treasury Secretary Steve Mnuchin said in a public statement. Grocers Incorporate Ghost Kitchens Into Their Stores As the popularity for ghost kitchens continues to soar during the pandemic, grocery stores are joining restaurants in bringing a ghost kitchen to their establishments. Kroger, the largest grocery store chain in the U.S., is looking to take advantage of consumers opting for online ordering by adding a ghost kitchen to their stores. Kroger has teamed up with ClusterTruck, a restaurant technology firm, to open restaurants that only offer food for pickup and delivery. Each on-premise ghost kitchen will measure approximately 1,000 square feet and be operated by ClusterTruck. Through online ordering or kiosks at the stores, customers can select from 80 menu items prepared by ClusterTruck staff. Kroger is hoping that offering prepared fresh foods will help attract customers that are opting to order delivery and eating at home. Third-Party Apps Update Their Look To Improve User Experience With many restaurants counting on third-party food delivery services to attract customers, some of these services are revamping their look to help customers discover restaurants near them. Uber Eats is launching a new look to their app and website in the coming weeks that will contain more information including enhanced pickup maps and user ratings for nearby restaurants. There will also be new features that provide instant access to a customer’s preferred cuisine and new merchants like grocery stores, butchers, flower shops, and pet supply stores. Uber Eats said in a company blog post that their consumer testing found that their delivery experience was fast, but users had a difficult time reaching the ordering stage. The company predicts these updated and new features will help increase usability and benefit restaurants with more orders. Photo credit: PhotoGranary - stock.adobe.com Bright Spots In A COVID-19 World Celebrities Come Together For A Charitable Cause Jack Black, Jamie Lee Curtis, and Danny Trejo are a part of the lineup for the Los Angeles Times first-ever Food Bowl: Takeout and Give Back Cook-A-Thon. The online fundraiser is in partnership with World Central Kitchen with proceeds going towards hunger relief for those impacted by the pandemic. Viewers will get to see appearances from well-known chefs like Chef José Andrés who will deliver a cooking demonstration and Chef Greg Dulan will share his tips and tricks for cooking fried chicken and Australian seafood. Other familiar faces will make an appearance like Alice Waters, Dominique Crenn, Eric Ripert, and more. The event is aimed to encourage viewers to support restaurants in Southern California and raise awareness for food relief efforts. Locals Join Forces To Save A Beloved Bistro Moonstrone Bistro in Redding, CA was preparing for the worst, like so many restaurants, and facing the possibility of permanently closing due to the effects from the pandemic. Local officials were reverting restaurants back to only offering outdoor dining to help reduce the spread of the virus. Moonstrone Bistro owners, Che and Tonya Stedman, thought the only way they could survive this would be by expanding their patio which would be roughly a $32,000 project. Unbeknownst to the owners, their loyal customers banded together and created a GoFundMe page for the bistro and within 24 hours raised $16,000. Local businesses also helped out by donating materials for outdoor expansion and architectural and engineering work. The restaurant is now utilizing these funds and materials in the hopes of surviving through further restrictions. Quote Of Hope “I see chefs using their kitchens and their spaces to cook for our most vulnerable populations, they are literally putting their bodies on the lines. Chefs are doing what they do best, and that is feeding people.” - Devita Davison, executive director of FoodLab Detroit

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