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Stats Of The Week The State Of The Industry While the grocery industry continues to see year-over-year dollar growth surpassing previous growth rates, last month they experienced a decline in sales while restaurants experienced an increase. The U.S. restaurant industry saw its fourth consecutive month of sales acceleration in August, with sales up 3.7%, according to data from M Science, a data analytics firm. Meanwhile, major grocery chains saw their sales drop 7% from July. The grocery stores that were most impacted by a deceleration were Smart & Final, Stop & Shop, and Food Lion. The online sector of the grocery industry also saw month-over-month deceleration in its August sales, while the natural and organic subsector saw relative sales growth. Dine-In Traffic Increases But Off-Premise Popularity Remains As more cities and states increase dine-in capacities, more customers are visiting restaurants in-person. Less than 25% of restaurants in August were under restrictions for on-premise dining, according to new data from The NPD Group. Even as consumers show considerable interest in returning to in-person dining, research from Technomic emailed to Restaurant Dive shows customers feel more comfortable supporting restaurants through off-premise channels. 68% of customers have visited drive-thrus, 63% have ordered take out, 48% have ordered curbside pickup, and 45% have ordered through third-party delivery or ordered delivery directly through a restaurant. If a preference for off-premise options continues through fall and winter, it may be a positive option for restaurants that can no longer offer outdoor dining when the weather gets colder. What’s Trending Proposed Relief Bill Includes Funding For Independents On Monday, House Democrats introduced an updated version of the HEROES Act which puts $2.2 trillion towards increased unemployment benefits and $120 billion in grants for restaurants, bars, and food trucks. The grants exclude chains and are geared for independent restaurants in underrepresented communities with establishments operated by women and minorities. The Independent Restaurant Coalition asked for Congress’s support on the Act which would also include another round of PPP loans for small businesses that have been hit the hardest. “The revised version of the HEROES Act is the best plan Congress has put forward to protect the livelihoods of the 11 million people employed by independent restaurants across the country,” the coalition said in a statement released late Monday. FL Lifts All COVID-19 Restrictions For Businesses Last Friday, Florida Governor Ron DeSantis enacted an executive order which removed restrictions on businesses statewide that were imposed to control the spread of COVID-19. This includes restaurants, which can now operate at full capacity, and bars, which were previously closed but can now open. Prior to the order, parts of Florida were in Phase 2 with foodservice establishments being able to open their dining rooms and operate at 50%. Local governments can place their own restrictions as long as they don’t limit restaurant seating to less than 50% and if they’re justified for health or economic concerns. The mandate will also stop cities and counties from fining people for not wearing face masks. Florida became a hotspot during the summer and even though positivity rates are down the state still has a positivity rate between 5-7%. "Every business has the right to operate," DeSantis said at a news conference Friday. "Some of the locals can do reasonable regulations. But you can't just say no." Outdoor Dining Is Here To Stay In NYC New York City’s outdoor dining program was set to expire October 31, but NYC Mayor Bill de Blasio said on Friday during WNYC's The Brian Lehrer Show that the program will become permanent and year-round. More than 10,000 restaurants in the city have incorporated outdoor seating resulting in saving about 90,000 jobs, according to the mayor’s office. The city’s Open Restaurants program, which allows city blocks to entirely close off traffic to allow dining in the street, will also be made permanent. For the colder months ahead, restaurants will have the option to incorporate propane or natural gas heaters to their outdoor spaces. They may also fully enclose their outdoor space to provide more heating but must adhere to indoor dining restrictions. DC Helps Restaurants Prepare For Winter With the arrival of colder temperatures and snowfall coming in the next few months, restaurants nationwide are outfitting their restaurants to weather through the winter. Washington, D.C.’s Office of Nightlife and Culture has launched a $4 million grant program to help restaurants and other retail businesses prepare their outdoor areas for winter. All independent and locally-owned businesses may apply, but non-local franchises are not eligible for grants. This program offers $6,000 to businesses with active sidewalk permits or private outdoor spaces. To be approved for this grant, each applicant must outline a plan for how they will utilize the money to winterize their establishment. The grants can be used towards tents, heaters, propane, furniture, advertising, and operational expenses for outdoor space. NJ Introduces What Could Be The Toughest Ban On Plastic Products With everyone turning to single-use products to help diminish the spread of COVID-19, many are questioning how these disposable products are affecting the planet. New Jersey lawmakers passed an initiative that would ban plastic products and paper bags in the state. The bill would ban film plastic bags and paper bags as an attempt to urge customers to use their own reusable bags. Also, polystyrene foam clamshell containers, plates, cups, food trays, and utensils would be banned. Plastic straws would only be available upon request at restaurants. The bill is now awaiting the approval of NJ Governor Phil Murphey who has had mixed opinions on the topic in the past. At the beginning of the pandemic, he signed a bill requiring restaurants and institutional foodservice establishments to recycle food waste. However, he has vetoed other initiatives that would charge for the use of non-recyclable bags as an effort to encourage customers to opt for reusable bags. Bright Spots In A COVID-19 World Chef Cooks Up Casseroles For Those In Need At the beginning of the pandemic, Chef Sunny Gerhart, owner of St. Roch Oysters and Bar in Raleigh, NC, began working with the Inter-Faith Food shuttle to help provide meals for food-insecure families. Since April, he’s contributed more than 50,000 casseroles with the help of his restaurant employees. He said to Spectrum Local News that for someone who is constantly surrounded by food, he never has to think about food insecurity and how people manage to feed their families during this unprecedented time. “I’m happy to get to feed some people, I’m happy I get to employ some people, and I’m happy I get to keep the doors of the restaurant open,” Gerhart said to Spectrum Local News. Discover Offers COVID Relief For Black-Owned Restaurants The credit card company has launched its “Eat it Forward” program that grants financial assistance to Black-owned restaurants across the country. Discover made a $5 million promise to give qualifying restaurants $25,000 each to help rebound from the impact of the pandemic. The program works by users nominating their favorite restaurants on social media with the hashtag #eatitforward. The credit card company hopes that this program not only helps restaurants financially but helps by promoting their business online. “COVID-19 has wreaked havoc on businesses across the United States, and we want to help effect positive change by offering financial support to Black-owned restaurants, a segment of the economy that has been disproportionately impacted during this pandemic,” said Julie Loeger, Discover Executive Vice President and President of U.S. Cards, in a press release. Quote Of Hope “Just to welcome people into your space, the feel of a busy restaurant. That feeling of walking someone through an experience, teaching a little bit about what you’re doing with your food, it’s just the best.” - Joe Flamm, owner of Rose Mary and winner of Top Chef season 15

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Stats Of The Week The State Of The Industry According to a press release from the National Restaurant Association, nearly one in six restaurants, about 100,000, have closed permanently or for the long term. With dining rooms reopening in August, consumer spending is still down an average of 34% which is below normal levels at this time of year. This data suggests that customers don’t feel comfortable returning to restaurants due to either safety concerns or financial hardships during a difficult economy. 40% of operators surveyed said it is unlikely their restaurant will still be in business in six months if they don’t receive additional financial support from the federal government. Consumers Express Pain Points With Food Delivery Services With everyone turning to food delivery during the pandemic comes service issues with third-party food delivery apps that are exacerbated by the recent influx of users. A large number of customers have reported experiencing customer service issues which is a key component to gaining repeat customers. 79% of consumers who have an issue with their food delivery order want to receive a phone call to resolve the issue, according to a 2,000 person survey conducted by First Orion. The study also shows that 62% of consumers have missed a call related to their food order because they didn’t recognize the number calling. 81% said it is “very important to extremely important” that an unknown number is identified by name so they know who is calling. 93% expect any customer service issue to be resolved in less than 10 minutes. What’s Trending CDC & NRA Challenge The Safety Of Dining Out In a recent report from the CDC, they found that adults who contract COVID-19 are twice as likely as the general population to have eaten at a restaurant in the two weeks beforehand. The report noted that both indoor and outdoor dining pose a risk of infection due to the fact that customers have to remove their masks to eat or drink. The NRA issued a response that makes points criticizing the CDC’s conclusions. One of the key points highlighted by the NRA is that the data from the CDC shows a correlation between dining out and people contracting COVID-19, not a cause and effect. “The study tells us that people who were diagnosed with COVID-19 had also dined out,” reads the statement from the NRA. “There is no clear evidence that the virus was actually contracted at a restaurant versus any other community locations.” The association also said that they have found no evidence of the virus spreading in restaurants that are effectively following their Restaurant Reopening Guidance. Caterers Turn To Virtual Cook-Alongs Caterers are getting hit particularly hard this year with special events and company gatherings being canceled due to the effects of COVID-19. Just as caterers are losing this business, many companies are also losing out on the opportunity to get to know their coworkers better through shared experiences. The founder and president of multi-concept restaurant group Table 301 in Greenville, SC, Carl Sobocinski, has created a concept where both caterers and companies can come together. His team of chefs have begun hosting virtual cook-alongs for company parties. “The idea came first about when a big local fundraiser was canceled in April,” Sobocinski said to Restaurant Business. “Two hundred people bought tickets and we set up the event on Zoom, delivering boxes of ingredients to each attendee.” The catering sales staff markets and organizes the cook-alongs while the catering kitchen staff assembles the ingredients. This has provided Sobocinski with the opportunity to get some of his employees back to work while generating business. California Steps In To Support Small Businesses California Governor Gavin Newsom signed three bills into law last Wednesday that are designed to provide relief for small businesses struggling with the economic impact of the coronavirus crisis. These laws come as Congress stalls federal relief efforts with no compromise expected in the near future. The first piece of legislation allows small businesses to exclude PPP loans from gross income for state taxes. The second initiative gives businesses that employ fewer than 100 workers and have seen a gross income decline of at least 50% a $1,000 income-tax credit for each employee hired up to $100,000. The third piece of legislation will provide the state with $411.5 million in stimulus funds and $230.5 million of these funds will be used to jumpstart construction projects. Survey Shows Areas Of Opportunity For Operators A new study by The Cola-Cola Co. found that many of the services demanded by consumers are not widely available in restaurants. Grocery is the largest area in which restaurants have room to grow. 73% of consumers said they were interested in getting groceries from restaurants while only 29% of restaurants offered them for on-premise or delivery. Consumers also showed considerable interest in purchasing meal kits from restaurants with 53% saying they would be willing to use that service with just 22% of restaurants offering them. The other high-ranking areas of opportunity for restaurants are combined promotions with other local retailers, beer and alcohol for take out and delivery, and in-home dining experiences. Contactless Ordering Is Available For Dine-In Customers As restaurants and food delivery services come up with innovative ways to limit contact between customers and employees, third-party food delivery companies have launched a new way for customers to dine-in. Uber Eats has launched contactless ordering for dine-in and pickup. Customers can scan a QR code at the restaurant or find the restaurant on the Uber Eats’ app. Their order and payment will be placed through the app and their food will be brought to them at a table or to go. Many restaurants have also utilized QR codes that customers can scan to browse the menu and pay through their phones. Bright Spots In A COVID-19 World Local Restaurant Turns Into A Sanctuary Space At the beginning of the pandemic, Natalia Mendez, Antonio Saavedra, and Yajaira Saavedra, owners of La Morada in NYC, organized a GoFundMe page to help support their restaurant. In a week, the fundraiser reached its goal of $45,000. Instead of using the funds to run their restaurant, as usual, the owners transitioned their establishment from a restaurant to a soup kitchen to feed their community. The Michelin Bib Gourmand-awarded Mexican restaurant started the soup kitchen in April and served 1,000 to 2,000 meals per day. While La Morada receives support from partners, their business is still vulnerable due to the owner’s undocumented immigration status. Their immigration status prevents them from receiving any federal benefits or loans. “We always try to provide meals to everyone who asks,” said Yajaira to Food Tank. “Our main goal is to help our neighbors through mutual aid, we want to make sure the community gets the best possible help.” Chef Steps Up To Support His Community Once it became clear that the pandemic was going to have a devastating impact on restaurants, Chef Erick Williams of Virtue Restaurant in Chicago, IL sprang into action. He quickly raised $39,000 to pay his restaurant employees while their restaurant was shut down. After meeting his goal of supporting his staff, Williams began raising money for first responders. While his restaurant was closed to the public, Williams still prepared meals to local healthcare workers. Now, with restaurants reopening, Williams offers community support by hosting benefit dinners and Instagram Live panels for social justice. Quote Of Hope “I don’t want to sound like we were trying to be some heroes. We were doing these things out of necessity. Restaurants, at their core, need to feed people.” - Chef Erick Williams of Virtue Restaurant in Chicago, IL

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Stats Of The Week The State Of The Industry With the future of the restaurant industry during the pandemic being unknown, staffing decisions have never been more difficult for restaurant operators. They must consider uneven customer traffic during a challenging economy, unpredictable dining regulations, and potential spikes in COVID-19 in the fall. In a survey conducted by the National Restaurant Association, when asked about staffing plans over the next 30 days, 26% of operators said they plan to add employees while 25% said they plan to lay off or furlough employees. Positive staffing outlook is slightly optimistic for quick-service, fast-casual, and coffee and snack concepts. 33% of limited-service operators plan to add employees over the next 30 days while 14% expect to cut staff. Drive-Thru Sales Continue To Rise During Dining Room Closures In the April, May, and June quarter, drive-thru visits increased by 26% and accounted for 42% of all restaurant visits during that time, according to new research from The NPD Group. Even though more dining rooms began to open in July, drive-thru visits still increased by 13% which is the highest visit increase among service channels including on-premises, carry out, and delivery. The continued rise of drive-thru operations is good news for the quick-service segment which garners 60-70% of its business through this channel. "Fast-casual and traditional quick-service chains have already announced expansion plans for their drive-thru operations, and more chains will be doing the same. Drive-thru and other off-premises operations will be a major part of the U.S. restaurant industry’s recovery and future," David Portalatin, NPD food industry advisor, said in a release emailed to Restaurant Dive. What’s Trending Indoor Dining Returns To NYC NY Governor Andrew Cuomo has announced plans for New York City to allow indoor dining beginning September 30. Since March, dining rooms have been shut down and will now resume at 25% capacity. Restaurants must also require temperature checks, one member of each party must provide contact information for tracing purposes, and restaurants must close at midnight. Bar services are still closed and masks must be worn at all times unless seated. New York has the highest amount of restaurants per capita and operators were growing restless to reopen. This lift on indoor operations will provide a much-needed boost to the city’s recovery and ends its status as one of the few places in the nation banning indoor dining. Gov. Cuomo said in a press conference on Wednesday that he credits the low infection rate to the state, less than 1%, to NY residents complying with local safety guidelines. Third-Party Food Delivery Apps Launch Sponsored Restaurant Listings Uber Eats has announced its first in-app advertising format to give restaurants a way to promote their menu offerings. In early tests, the food delivery service’s sponsored listings have seen a return on ad spend of five times, according to details Uber Eats emailed to Mobile Marketer. Their pricing model goes by cost-per-click so restaurants only pay when an app user clicks on the sponsored listing that appears at the top of the app’s home feed. Uber Eats has unveiled a self-serve ad platform that lets restaurants target their ads based on the location, order history, and dietary preferences of Uber Eats customers. To encourage restaurants to test the new service, the company is offering $25 million in marketing credits to small and medium-sized businesses that are facing challenges as pandemic lockdowns limit indoor dining. Restaurateurs Scramble To Plan For Winter In these unpredictable times during the pandemic, restaurants are planning for the worst case scenario for the upcoming winter months. Many states have restricted indoor dining which has resulted in restaurants depending on outdoor seating to stay afloat. Once the weather gets colder, that lifeline may not be an option for some. When it comes to planning for snowfall and cold temperatures, Julia Zhu, who is the managing partner at Bar Roma in Chicago, told CNN that she is trying to keep outdoor dining going as long as possible. That means looking into buying heaters for her patio and investing in coverings over tables. While most restaurants are still operating at a loss, these next few months will be yet another battle the restaurant industry will endure this year. Fast-Casual Restaurants Pivot To Digital-Focused Models During the pandemic, fast-casual restaurants have seen an uptick in drive-thru sales with customers feeling comfortable using that channel to limit human-to-human contact. Operators are taking advantage of this opportunity and planning to the future with new technologies to advance their contactless services. For example, Burger King has announced two new restaurant designs that will be dedicated to mobile order and curbside pickup areas, drive-in and walk-up order areas, and enhanced drive-thrus. These new concepts claim to be 100% touchless and 60% smaller than a traditional restaurant. Also, Dunkin’ is testing an Amazon Go-style store in California which allows customers to walk into a store to grab coffee and baked goods without interacting with anyone or scanning at a kiosk. Large Chains Try Out Virtual Restaurants As many restaurants try to bring in as much profit as possible during the pandemic, a growing number of chains have added virtual kitchens to their existing chain restaurants. Outback Steakhouse is testing out a new virtual kitchen concept called Tender Shack. About a dozen of the company’s units have started offering fried chicken tenders and fries. The platters and sandwiches are sold only for delivery via DoorDash. Chili’s has also established a virtual kitchen in 1,000 of their brick-and-mortar restaurants called It’s Just Wings. It’s a wing-focused concept and is only available online or on DoorDash. The list of chains affiliated with virtual restaurants includes Applebee’s, Smokey Bones, Fat Burger, and Chuck E. Cheese. Bright Spots In A COVID-19 World Chef Turns Closed Restaurant Into A New Opportunity Millie Peartree, owner and executive chef of MP Fish Fry & Soul Food in the Bronx, New York, is one of many chefs that has closed her doors indefinitely during the pandemic. She was determined to keep as many employees as possible to help her pivot to a new business model. Peartree launched Full Heart Full Bellies in April as a way to provide prepared meals for those impacted by the pandemic. The group shifted to feeding Bronx children in need of food with each child receiving one hot meal at least three times a week during the summer. With the help of her team, Peartree prepares comforting meals consisting of six ounces of lean protein, four ounces of fresh vegetables, and four ounces of starch. They have received support from Audi, Amazon, Coca-Cola, and local restaurants and bakeries in the form of donated cars, kitchen space, and food and beverages. "[My] goal is to feed children and their families for an entire school year, providing 250,000 meals over 10 months," Peartree told TODAY. Locals Work Together To Save Beloved Diner Six months into the pandemic, Vicki’s Diner in Westfield, NJ was on the brink of permanently closing after its owners depleted their savings to pay their staff and cover expenses. Then, community organizers stepped in to save one of the town’s most popular diners. Locals came together and created a GoFundMe page for the 21-year-old diner. Nearly 250 people have donated to the campaign and reached more than $22,000 to help fund the diner and keep it open. “We are very grateful. I feel overwhelmingly what we mean to the community,” Peter Rentoulis, co-owner of Vicki’s Diner, said to NJ.com. “Between the outside and inside [dining] and the funds, it will bring us to a safe level. We will make it through.” Quote Of Hope “Let’s not wait for the new normal, or hope for things to return to that of the past, but let’s start building our future.” - Kevin Lieu, chef and owner of GAI in San Francisco, CA

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Stats Of The Week The State Of The Industry Restaurants should expect to serve four types of customers in the next coming months during the pandemic, according to a survey from restaurant tech company Sevenrooms. First, “The Pick-Up Patron”, 27% of respondents said they won’t feel comfortable eating in a restaurant dining room until a vaccine for COVID-19 has been developed and will stick to ordering take out. Second, “The Safety-Savvy Consumer”, 22% of those surveyed want a detailed outline of a restaurant’s safety protocols, including physical barriers, at-table hand sanitizer, and having their food covered when brought to the table. Third, “The Tech-Conscious Contactless Diner”, 13% said they would only dine in a restaurant that uses contactless dining solutions like virtual waitlists, QR code-enabled order and payments, and contact tracing technology. Fourth, “The Carefree Guest”, 29% said they are comfortable with indoor dining and 42% said they are comfortable with outdoor dining. Customers Excitement For Dining Out Grows 59% of consumers plan to dine-out as soon as they are able to, according to a new Oracle Food and Beverage study. The study found that customers are looking for reassurance when it comes to a restaurant’s cleaning procedures and technology to reduce contact with servers. 40% of participants said they would feel safer if they could view the menu and pay for their check using their mobile devices. Another trend emerging during the pandemic? More consumers are showing an increased desire in helping out independent restaurants with 39% of respondents ordering more frequently from local restaurants than before the pandemic. What’s Trending California Plans A Cautious Reopening For Restaurants On Monday, California Governor Gavin Newsom outlined a path for restaurants to reopen called the Blueprint for a Safer Economy. The plan is an updated color-coded tier system for each county to achieve certain COVID-19 milestones before restrictions are gradually loosened. The framework is based on the average count of new coronavirus cases per 100,000 people per day along with the average positivity rate. To advance through the tiers, counties will be assessed weekly and must meet the criteria for a less-restrictive tier for three weeks before moving to the next stage. If they fail to meet the next tier’s requirements, they could be moved back to a more-restrictive phase. Most of California’s 58 counties on Monday remained in Tier 1, which allows restaurants to open only for outdoor dining, take out and delivery with modifications. Bars, breweries, and distilleries that don’t serve food remain closed. Ways Restaurants Can Prepare For A Second Wave As fall and winter bring colder weather, health authorities fear that a second wave of coronavirus infections may be inevitable for the United States. Unlike at the beginning of the pandemic, operators are now more equipped to take on a second wave and draw on what they learned from the first wave. Here are some of the most effective strategies and tactics restaurants have taken over the last five months, according to Restaurant Business. Try to keep your employees or maintain a strong relationship with them even if business slows down to be prepared for when business picks up again. Next, cut back your menu to streamline operations while reducing food and labor costs. More concise menus mean buying fewer ingredients, reducing food waste, and reducing ticket times. Create family-sized options at an affordable price to attract customers who are looking to get the most out of each meal during a struggling economy. Offer curbside delivery which has gained popularity amongst customers because it eliminates human-to-human contact. Orders are placed online and food runners can leave the take out bags in the customer’s trunk or backseat. Consumers Prefer Ordering Through Restaurants Than Third-Party Apps As COVID-19 forces dining room closures, food delivery continues to surge amongst consumers. Many consumers continue to show a preference for placing orders directly with restaurants as opposed to third-party delivery services. Customers prefer direct restaurant ordering to avoid delivery fees, creating a large opportunity for restaurants to promote their own channels. That means restaurants investing in self-delivery, enhancing their website or app, and capturing potential customers with targeted promotions. "If I'm a restaurant, I need to invest in my first-party experience, I need to promote my first-party experience, and I need to give consumers what they want. Because ultimately, right now, they're being disintermediated by those third parties,” Eli Portnoy, CEO of consumer research firm Sense360, said during the Food on Demand conference. NY & LA Extend Delivery Commission Fee Caps New York City officials prolonged the timeline of its 20% cap on delivery commission fees that were first put in place in May. These commission fee caps are aimed to help lessen costs for restaurants during the pandemic. The cap was set to expire on September 18, but has been extended until restaurants in the city are able to operate at 100% indoor capacity, plus an additional 90 days. Los Angeles also expanded its 15% commission fee cap that was originally set to expire August 31. LA follows NYC with extending the cap to 90 days after restaurants are able to resume indoor dining capacity at 100%. The ordinance would also return into effect at any point if restaurants are mandated to reduce indoor capacity due to COVID-19. How Operators Can Meet Consumers’ Safety Needs The pandemic has raised consumers’ awareness of health and safety, especially when it comes to food delivery. In order for customers to feel comfortable ordering from restaurants, operators must cater to consumers’ safety concerns to gain their trust. Consider using tamper-evident packaging to provide customers visible proof that their meal hasn't been touched or contaminated. Try using bags that are sealed shut with a staple or sticker, pull-tab plastic containers, or tamper-evident seal boxes. According to research conducted by WestRock, 59% of consumers say their perception of a restaurant would be more positive if the restaurant began using tamper-evident packaging. Also, opt for durable and leakproof containers that can hold up during transport and ensure your meals make it to customers in the best condition. Bright Spots In A COVID-19 World Local Restaurant Puts The Soul In Soul Food At Drexell & Honeybee’s in Brewton, AL, there’s a soul food restaurant with no cash register or prices. The owners, Freddie and Lisa Thomas-McMillan, make no profit from their restaurant with 100% of donations going back into serving food for people. Their menu changes daily but focuses on hearty Southern dishes like fried chicken, cornbread, and collard greens. Lisa told the Good News Network that the pandemic made running the restaurant a little more tricky but they figured out a way to do to-go orders while keeping everyone safe. Lisa feels proud to be able to do what she does and helping out those who’ve been affected by COVID-19. “‘Feed the Need’ is our mission statement,” Lisa told GNN, “Whatever needs people have, if we can help them we will.” Chef Redirects Funding To Help Those In Need When Chef Danielle Leoni, co-owner of The Breadfruit and Rum Bar in Phoenix, AZ, got involved with Frontline Foods’ Phoenix she noticed those first responders were able to get food fairly easily and thought of others who were not as fortunate. As pandemic-related unemployment rose in the area, affecting local families, Leoni came up with the idea of redirecting funds to families in need. Leoni began working with a group called A New Leaf, an organization that provides shelter to families affected by domestic violence and poverty. The program includes partially prepared meal kits with recipe cards that can feed up to four people. Packaged with the meal kits is helpful information for food-insecure families including public transit, farmers' markets, Arizona’s Supplemental Nutrition Assistance Program (SNAP), and Double Up Food Bucks, which can be spent on Arizona-grown produce. Quote Of Hope “There have been times during all of this when I think about what is the point, but I remind myself it’s about giving other people hope. The goal is to weather the storm.” - Nina Compton, James Beard award-winning Saint Lucian chef

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Stats Of The Week The State Of The Industry According to forecasts from Techonomic, the foodservice industry will grow by 21% in 2021 but sales are expected to still be down 11% from 2019. After a dramatic dip in sales in 2020, the restaurant industry is expected to lose anywhere from $250 billion to almost $300 billion in sales this year as compared to 2019. They found quick service is among the segments performing the best while full-service restaurants, bars, travel and leisure, and education are still struggling. Techonomic’s forecast believes the hope of the industry recovering is tied directly to medical advances related to COVID-19, such as a vaccine or advanced therapies. The Road To Restaurant Recovery Isn’t Without Speed Bumps According to the NRA, at the start of the pandemic, restaurant employment in every state fell sharply in March and April. The northeast region of the country was hit the hardest with seven states losing more than 60% of their foodservice jobs during those two months. In May, restaurant employment levels in every state began to recover as local economies started to reopen. California, Texas, Florida, and New York set the pace by adding back more than 200,000 restaurant jobs between April and July. However, these were also the four states that lost the most restaurant jobs in March and April. The NRA predicts that the road to restaurant recovery will be bumpy as shown with Texas, Arizona, Florida, and Oklahoma seeing restaurant employee levels decline in July due to the spike of COVID-19 cases in those areas. What’s Trending NY Gov Considers Closing Outdoor Seating For NYC Restaurants While New York City restaurants are fighting to reopen dining rooms, NY Governor Andrew Cuomo announced last week that he’s considering shutting down outdoor seating as well. This move would resort NYC restaurants to only offering food for take out and delivery as they did in March. During a press briefing, Cuomo said NYC poses a unique risk during the pandemic because of its population density and spoke about NYC restaurants and bars not enforcing safety guidelines. As the weather gets colder in the next few months, Cuomo said he may suspend outdoor services to combat the risk of coronavirus infection spikes. Groups, such as the New York City Hospitality Alliance (NYCHA), say the local restaurant industry has been decimated by the loss of dine-in service and outdoor dining has been the only means of survival for most businesses. The group notes that restaurants in every other region of the state have been allowed to resume using up to 50% of their indoor seating capacities. Virtual Restaurants Surge During The Pandemic From ghost kitchen, host kitchens, and virtual restaurants, most restaurants are pivoting to delivery-only menus to boost off-premise revenue during the pandemic. The options are endless for the virtual restaurant space geared towards consumers looking to pick up food rather than dining in. With most restaurants operating at limited or zero indoor dining capacities, many are turning to various forms of ghost kitchens to create new channels of revenue. Restaurants like Chili’s, Maggiano’s Little Italy, Applebee’s, Ruby Tuesday, Nathan’s Famous, and others are utilizing their kitchens to offer special items that aren’t included in their regular menus to customers searching through online food delivery systems. Experts say delivery-only menus are critically important for casual dining chains trying to survive the coronavirus crisis that has crippled on-premise revenue, according to Nation’s Restaurant News. “As the demand increases for virtual stores, we will start to see sit-down restaurants, especially casual dining, disappear unless they can find a new way to innovate,” said Tim Powell, managing principal at industry consultancy Foodservice IP in Chicago to NRN. Mobile-Focused Concepts Become The Future For Chains According to a survey from Bluedot and research firm SeeLevel HX, 50% of consumers are using restaurant mobile apps more often now than they did before the pandemic. With widespread consumer concerns around safety and social distancing, off-premise formats have seen a spike in innovations to sustain revenue. Taco Bell is launching a new restaurant concept called Taco Bell Go Mobile that is designed specifically for diners to order ahead through the chain’s mobile app, according to a company press release. These locations will include one traditional drive-thru lane and one priority pickup drive-thru lane that quickly services customers who order through the Taco Bell app. Smart kitchen technology integrated into the chain’s app will keep track of when a customer has arrived at the restaurant. Depending on which is faster, the app will guide them to either the priority drive-thru lane or designated parking spaces for contactless curbside pickup. Go Mobile restaurants will be 1,325 square feet compared to standard Taco Bell locations, which average at 2,500 square feet, and will include tablet ordering at both its drive-thrus and curbside pickup operated by team members known as "bellhops”. Shake Shack Rewards Employees With Year-End Bonuses Shake Shack announced that they will be rewarding all of their employees with year-end bonuses. The announcement comes after the company ended a 10% bonus pay program for its hourly workers that had been in place at the end of April until August 19. Each employee will receive a bonus ranging from $250 to $400 depending on their position. The company will also be distributing bonus payments to all managers through the next two quarters. Shake Shack had struggled during the pandemic as many of its restaurants are located in tourist locations and have now recovered enough to provide bonuses to their employees as a thank you to them, according to Nation’s Restaurant News. Google Takes Steps To Make Ordering Easier For Customers With more and more consumers ordering food online during the pandemic, Google is adding new features to allow consumers to order directly from their programs. When restaurant dining rooms were forced to close, Google added new filters that show which restaurants offer take out and delivery to make the experience easier for consumers. Now, the company is partnering with restaurants to make ordering food directly through them that much easier. According to a company press release, Panera Bread is working with Google to allow customers to order food through Google Search, Google Maps, and Google Assistant. The program works by customers searching for “Panera near me” through any of those systems and they are given the option of ordering for curbside pickup or delivery. Customers can use contactless payments, like Google Pay, to complete their orders. The companies are calling attention to this new partnership by running a promotion for anyone who orders Panera through Google to receive 20% off their first delivery or curbside pickup order of $20 or more through September 14. Image credit: Thaspol - stock.adobe.com   Bright Spots In A COVID-19 World Local Chef Takes Up New Skill To Drive Business Luella’s Southern Kitchen in Chicago, IL is known for bringing true southern cuisine to the city. When the pandemic hit the area, chef and owner, Darnell Reed, pivoted to take out and delivery like so many other restaurants. Once the city began to loosen restrictions and allow dine-in services, Reed chose to strictly offer delivery and carry out to keep his employees and customers safe. Reed had to close his second restaurant, Luella’s Gospel Bird, but managed to keep all of his employees. He chose to use his time to learn a new skill that would ultimately turn into part of his business: baking. Reed said to NBC that he began taking online classes to learn new baking techniques and help create a second business within the business to make up for lost revenue. He launched Baye’s Little Bakery which is hosted online and helps create hours for employees that previously worked at his Gospel Bird location. Reed said he is happy that practicing a new skill helped grow his business and keep his employees. Restaurant Feeds Hospital Workers With Community Help Doug Levy, owner of Feast in Tucson, AZ, saw the devastation that frontline workers were experiencing at the beginning of the pandemic and thought the best way to help bring a bright spot to their day is with the help of food. Levy knew feeding hundreds of hospital workers wouldn’t be cheap, especially when his revenue dropped by a third due to dine-in closures. He then decided to reach out to his 4,500 devoted supporters on his restaurant’s email list for help. He calls those who offered to help his “Feastlings” with the deal being that for every 250 meals donated, Feast would make 50 of its own meals. Since early April, Levy and his crew have prepared and distributed more than 3,000 meals to hospital workers in their area. Hospital employees receive meals like beef bourguignon, chicken cacciatore, and other special dishes. Levy told Tucson.com that this experience is helping keep his staff afloat while keeping the people who are doing the critical work fed. Quote Of Hope “We have more time to see ourselves as part of the community. As restaurateurs, we have a renewed respect for our servers, cooks, dishwashers, and all our vendors that come through every day despite the difficulties and the fears.” - Alma Alcocer, the chief operating officer of El Chile Group and executive chef of Bouldin Creek Tex-Mex restaurant El Alma.

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Stats Of The Week The State Of The Industry Despite restaurants reopening and rehiring employees, the restaurant industry has lost 2.6 million jobs as of July, according to the Bureau of Labor Statistics. Since quick-service and fast-food restaurants had a less complex time pivoting to off-premise operations, they’ve been able to rebound more quickly than casual dining restaurants. In June, quick-service restaurants added 1.3 hourly staff per unit while fast-casual restaurants added 2.1 hourly employees per unit in June. Comparatively, casual dining lost 3.1 staff members per unit for front-of-house employees and 1.1 back-of-house employees in June, according to Black Box Workforce Intelligence data. The data also shows a slight decrease in base pay with limited-service staff earning $10.20 per hour during Q2 compared to $10.25 in Q1 2020. Full-service general manager salaries decreased to $71,479 in Q2 compared to $72,703 in Q1 2020. Consumers Opt For Alternative Food Ordering To Limit Contact The COVID-19 pandemic has driven a number of changes in the world, including the way consumers make orders from fast-food restaurants. The use of mobile apps for food ordering has spiked from 51% in April to 64% in July, according to a report from Bluedot and SeeLevel HX based on a July survey of 1,501 U.S. consumers. The report also shows that customers increased their drive-thru usage by 43% in April. Nearly three out of four consumers visit the drive-thru as often or more often than before. Curbside pickup has also increased with 40% of respondents saying they used it more often than usual, compared to 27% in April. What’s Trending Experts Predict The Delivery Boom Is Here To Stay While the pandemic has forced many dining room closures, customers have flocked to food delivery in order to receive meals and support their favorite restaurants. Restaurant delivery has gone into overdrive with Grubhub and Uber Eats reporting in recent weeks massive spikes in revenue, orders, new users, and restaurant partners from April to June. As consumers are staying home to prevent the spread of COVID-19, they are ordering more food, more often and a significant portion of first-time users are coming back a second time, according to researcher Edison Trends. Experts believe that the delivery boom will stay once the pandemic subsides because consumers have become accustomed to the convenience of delivery despite the added cost. Restaurants also support this outlook. Bloomin’ Brands, the parent company of Outback Steakhouse and Carrabba’s Italian Grill, saw it’s off-premise business triple during the pandemic. Even now, with 92% of its dining rooms open, off-premise is continuing to make up 45% of its sales, executives said on the company’s recent second-quarter earnings call. “There’s a lot that’s still unknown. As the pandemic continues, we hypothesize that delivery will still be an important part of restaurants as far as how people are experiencing food,” Sam Acuna, managing partner with Gallup, said during the virtual Food on Demand conference. Restaurants Create Virtual Events To Keep Customers Engaged From cocktail demonstrations to master classes, virtual events filled with guests that are yearning for the restaurant or bar experiences have become the new norm. In Seattle, WA, Zach Geballe, wine educator for Tom Douglas Restaurants and owner of his own company, Disgorged Wine, has been running a series of online wine classes to educate his viewers on the best wine pairings and the history behind them. Geballe provides meaningful information for his customers while giving them the experience of taking a wine class. Soon after Paul Grieco, general manager and owner of Terroir Tribeca wine bar in New York City, closed his wine bar he jumped onto social media to begin an interview series called “From the Bunker”. The name is a nod to Grieco taking interviews from his basement office where he spoke to well-known figures in the restaurant industry such as chef José Andrés, founder of Central World Kitchen, and master sommelier Bobby Stuckey of Frasca Food & Wine in Boulder, CO. “I did not want to lose touch,” Grieco said to Nation’s Restaurant News. “It was hard to shut down. I wanted to talk about wine. It took a pandemic for me to start using social media. I'm an old dog, but it became time I started learning these new tricks. It has kept me engaged and it has kept our guests engaged with us.” NYC Restaurant Workers Struggle While Jobs Remain Scarce At the beginning of the pandemic, New York City was the epicenter of the coronavirus. Now, 5 months later, while the virus has subsided, former restaurant employees are still struggling to make ends meet. According to the latest unemployment figures from the state, less than half of the city’s estimated 26,000 restaurants are participating in the expanded outdoor dining program, and even those that choose to participate are seeing business diminish at around 30% to 50% of normal volume. Nearly 60% of hospitality industry workers remain without a job in New York. Many of the former restaurant employees that have not been called back to work are immigrants that made up the majority of the staff working in kitchens by either cooking, cleaning, bussing, or running food. Now, you can often find these industry workers waiting in long lines at schools, food banks, and pantries to obtain much-needed supplies while waiting for the opportunity to get back to work. Large Chains Backtrack & Accept Second-Round PPP Loans During the first round of PPP loan disbursements, many large restaurant chains received criticism for accepting large amounts of funding while smaller businesses received little to no money. Potbelly Sandwich Shop, a sandwich chain with more than 440 units around the country, was among several chains that were criticized during the first round of funding. Eventually, the chain returned the loan and gained much praise from the restaurant community. Now, in the second round of funding the sandwich chain has reversed course and taken out another $10 million PPP loan. Potbelly said in a statement that their business has stabilized over the past few months, but has been well below pre-COVID sales levels. Potbelly says the funds will go to their dedicated employees, to preserving jobs, and to keeping shops open. Ghost Kitchens Prove To Be The Future Of Restaurant Growth Ghost kitchens have shown to be successful during the pandemic as operators are able to run additional food concepts in the back-end of their establishment and bring in more revenue. Fat Brand CEO Andy Wiederhorn announced last week that the company has added Johnny Rockets to its portfolio mix of casual and fast-casual brands. Wiederhorn said in an email to Restaurant Dive that COVID-19 is a temporary crisis and the company is buying Johnny Rockets for the long term. The ‘50s-style diner concept was slated to expand its reach to casinos, theme parks, and cruise ships at the beginning of the year, but now those industries aren’t expected to make a sizeable recovery anytime soon. Wiederhorn says he sees immediate growth in allowing franchisees to scale Johnny Rockets through virtual restaurants via other Fat brands. “Ghost kitchens are a great way to do this as it allows us to offer our concepts in new territories at a faster rate. We have also seen great success with our virtual restaurant concept where franchisees will operate brands out of existing physical restaurant locations and provide a separate menu offered only via third-party delivery service providers,” Wiederhorn said. Bright Spots In A COVID-19 World Local Restaurant Creates A Pre-COVID Experience With Live Music FitzGerald’s, a bar and live music venue in Berwyn, IL, is utilizing its outdoor space to bring a little normalcy back to its local community. The bar has a large patio that can safely hold 100 people while maintaining social distancing and following local guidelines. The venue started hosting live music at the beginning of the summer with reservations available through OpenTable. While concertgoers are not able to move around the grounds and dance as they’re used to, folks do gently dance in their respective areas while wearing masks. Will Duncan, FitzGerald’s owner, said to Eater that the response to the community concerts was positive as music and good drinks give residents something to latch on to during these troubling days. Ohio Restaurant Association Launches Fundraiser For Workers The Ohio Restaurant Association aims to raise $30,000 in donations over the course of 30 days to assist restaurant employees who are in need due to coronavirus-related issues. In a press release, the ORA said they hope to raise more money for employees who are struggling in the restaurant industry that has been devastated by the pandemic. Recent ORA data predicts that more than half of all Ohio restaurants may be forced to close if the situation doesn’t improve in the next nine months. The fundraiser will offer several virtual events and specials for donors, including a cooking class and beers through local breweries. Quote Of Hope “Look at every possible angle to discover a revenue stream you can create, from take out and delivery to merchandise. Try something and fail. Be bold but be careful, and always take care of your team.” - Niven Patel, Miami chef and a 2020 Food & Wine Best New Chef

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Stats Of The Week The State Of The Industry In July, restaurants and bars led the nation’s economy in rehiring with 502,000 individuals added to payrolls as dining rooms reopened and to-go sales remained strong, according to the U.S. Bureau of Labor Statistics. Foodservice establishments accounted for nearly one of every three jobs created outside of the agriculture industry during July. The restaurant industry came into August with nearly 9.7 million employees on a seasonally adjusted basis which maintains its status of being the nation’s second-largest employer behind healthcare. Despite more jobs coming back, the figures show 2.4 million fewer people were working in restaurants and bars compared to the 12 million who were employed at the same time last year resulting in a 19.7% decline. Restaurants Take On Debt To Stay Afloat According to data from the James Beard Foundation, during May, 75% of independent restaurants reported taking out over $50,000 in new debt while 12% said they took out over $500,000 in debt. The foundation conducted two surveys from May 19 to May 29 and July 14 to July 28, which consisted of over 2,100 respondents. 69% of restaurants said rent and payroll were their biggest, most immediate cash challenges in May, while 52% of respondents in July said their top priorities were getting relief for new personal protection equipment expenses, rent, mortgage, payroll, staff benefits, and vendor expenses. What’s Trending Florida Eases Safety Requirements For Restaurant Employees Florida Governor Ron DeSantis signed an executive order last week which eased COVID-19 safety requirements for restaurant workers. With this order, restaurant employees are no longer required to show two negative COVID-19 tests before returning to work. The new order places the responsibility on restaurant owners to implement employee screening protocols using the guidelines from the Centers for Disease Control and Prevention. New CDC guidance has adjusted its previous recommendation of patients recovering from the virus from quarantining up to 14 days to now just 10 days after symptoms began. The federal agency still advises business owners to encourage employees to stay home if they are feeling sick or have been in close contact with someone who has contracted COVID-19. Chains See Opportunities During Restaurant Closures As the pandemic continues to ravage the country, more and more independent restaurants are permanently closing their doors every week. Despite the economic and health crises, some operators are looking towards the future for growth and development. With many restaurants permanently closing, many opportunities in real estate are developing. Greg Koffler, VP of franchise sales and development for Paris Baguette, said to Restaurant Business that landlords are eager to get deals done and often offer reduced rents and other incentives. The French bakery’s goal is to sign multi-unit franchisees and expand the brand to 100 locations by the end of the year. Roy Rogers, a fast-food chain, is also in growth mode with refreshing its store design, introducing digital menu boards, strengthening its core menu, and enhancing operational efficiencies. Their new prototypes opened at the end of July along the Pennsylvania Turnpike and replaced two former Steak ‘n Shake locations. Roy Rogers has reported that they’ve been experiencing positive sales growth and their upgrades have improved performance during the pandemic. DoorDash Launches A Digital Convenience Store DoorDash has announced a new service called DashMart, a new digital convenience store service. This service marks the company being able to manage and deliver its own inventory. On DashMart, customers can buy around 2,000 grocery products, household essentials, convenience store items, and restaurant offerings. To start, DashMart will be available in eight cities including Chicago, Dallas, and Phoenix, and continue to expand to new cities like San Diego, California, and Baltimore, Maryland, in the next several months. The service will feature retail products from national brands like The Cheesecake Factory and other local businesses. Deliveries from DashMart will be available in as little as 30 minutes, CNBC reported. Uber Eats Grows In Sales & Partners According to a company release, Uber reported a 103% year-over-year revenue increase for Uber Eats as a part of its Q2 earnings. Meanwhile, Uber’s ride-hailing business saw a revenue decline of 67%. Uber Eats also reached a milestone with 500,000 active restaurant partners in June, which is up 50% compared to Q2 last year. The company added enterprise accounts including Baskin Robbins, Chopt Creative Salad, Dave & Busters, Del Taco, and Yum Brands. Also, its small to medium restaurant addition grew over 70% year-over-year during Q2. "Our team continues to move at Uber speed to respond to the pandemic's impact on our communities and on our business, leading our industry forward with new products and safety technologies, and harnessing the strong tailwinds driving exceptional growth in delivery, with Gross Bookings growing 122% year-over-year excluding exited markets," CEO Dara Khosrowshahi said in the company release. Restaurant Reinvents Business Model To Survive In Zionsville, Indiana, a popular gathering spot, the Cork and Barrel Wine Bar, temporarily closed during COVID-19 shutdowns. Co-owner Sarah Hine quickly turned the wine bar into a delivery business and a mini grocery store to sell consumer-sized quantities of grocery staples. Hine partnered with Piazza Produce, a wholesaler in Indianapolis, to sell everything from filet mignon to milk, buns, and produce. The bar started doing 30 to 40 deliveries a day for customers who couldn’t find what they needed at grocery stores or had to wait days for an Instacart order. Hine’s wine bar and Piazza Produce were able to bring in revenue, which didn’t replace normal volumes but helped both companies stay in business. "I was used to running a wine bar but I had to pivot to be a complete retail store," Hine said to Restaurant Dive. Bright Spots In A COVID-19 World Celebrity Chef & Actor Team Up To Feed Their City Celebrity chef Marcus Samuelsson and Michael B. Jordan have collaborated to create Newark Working Kitchens (NWK), which makes meals for locals in Newark, NJ. NWK has activated 25 local restaurants that have prepared over 310,000 meals since April. Samuelsson told Bloomberg News that he reached out to Jordan because he had family ties to the area. His father worked at a food bank in Newark and his family ran a small catering company there. NWK is also sponsored by other big names like Audible Inc., Twitter Inc. CEO Jack Dorsey’s Start Small program, and Rihanna’s Clara Lionel Foundation. “Having grown up in Newark, I know its incredible strength and resilience firsthand. I was proud to answer the call from Marcus to support the work of Newark Working Kitchens by donating meals to those in need while at this same time empowering local restaurants and businesses,” Jordan wrote in an email to Bloomberg News. Local Restaurants Give Teens A Unique Dining Experience In Chicago, IL, three chefs from fine-dining restaurants are teaming up with three pizzerias to raise money for My Block, My Hood, My City. The foundation provides underprivileged youth with an awareness of the world and opportunities beyond their neighborhood. The idea came from Caleb Trahan, sous chef at Schwa, a restaurant in Wicker Park, because he wanted to find a way to work with restaurants while providing the local youth access to different food and dining experiences during the pandemic. Teens will be able to enjoy gourmet pizzas for pickup like poutine-and-chilaquiles-inspired pizza, Sicilian-style ratatouille-inspired pizza, and jamon y melon grandma-style pizza. Quote Of Hope “Restaurateurs and chefs, we are dreamers. So I plan every morning. I have to see the light. Although we’re in it right now... we live on hope.” - Marcus Samuelsson, chef and restaurateur

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Stats Of The Week The State Of The Industry On August 4, the National Restaurant Association sent a letter to Congress urging lawmakers to change the parameters of the Senate Heals Act that determine a business’s eligibility for a second Payment Protection Program (PPP) loan. Currently, the Act only accepts small businesses with fewer than 300 employees and a 50% loss in quarterly gross receipts over the previous year. With the current qualifications, 55% of restaurants would not be eligible for a second PPP loan, according to the NRA. The association is urging a 20% threshold which would open the eligibility to 430,000 restaurants. Diners Show Their Support Through Online Ordering According to a report from Toast, a restaurant software company that surveyed over 700 customers, the majority of restaurant consumers are regularly placing online orders during the COVID-19 crisis. 29% reported they order food online a few times a month, 25% do so a few times a week, 22% order once a week, and 4% order online multiple times a day. Only 14% of respondents did not place an online restaurant order in the past month. Also, 34% of respondents ordered take out and 29% ordered delivery using the restaurant’s native app while 21% said they used third-party apps for pickup and delivery. The survey showed that customers use DoorDash more than any other third-party platform followed by Uber Eats and Grubhub. What’s Trending NYC Bars & Restaurants Struggle To Pay Rent According to a new survey by the New York City Hospitality Alliance (NYCHA), more than 4 out of 5 restaurants, bars, and nightclubs in NYC could not pay their full rents in July and more than a third could not afford to pay any amount. Many operators got little sympathy from landlords. 71% of landlords refused to waive any of the rent due, 61% would not defer payments, and 90% declined to formally renegotiate leases. The survey shows the difficulties operators are running into in the city where indoor dining and drinking have been prohibited, resulting in less income for restaurants. “While complying with the necessary pause, our industry has been uniquely and financially devasted,” Andrew Rigie, executive director of the NYCHA, said in a statement to Restaurant Business. "Small businesses urgently need solutions from government leaders at the city, state, and federal level, inclusive of extending the moratorium on evictions, extending the suspension of personal liability guarantees in leases, pausing commercial rent taxes, providing landlords with needed support, and infusing small businesses with enough cash to weather the storm.” Innovative Ways Restaurants Are Packaging Take Out Meals At the start of the pandemic, restaurants pivoted to take out and delivery options in an attempt to generate business while dining rooms were shutdown. Family meals and meal kits grew in popularity and now five months into the pandemic, restaurants are still coming up with innovative solutions to keep customers coming back. Lazy Dog Restaurant & Bar took their 2020 meals and turned them into 1950s-inspired TV dinners. The restaurant went retro and launched five classic Americana TV Dinners that come in the aluminum trays inspired by how TV dinners were packaged in the 50s. Moe’s Southwest Grill launched a new Nacho Meal Kit which comes with a video and infographic to direct customers how to dress up and construct nachos. Chips, two proteins, queso, pico de gallo, beans, sour cream, jalapenos, and salsa are all included in the meal kit. Dickey’s Barbecue Pit has created the Big Yellow Box as a new catering option where customers can order different combos that serve up to 12 people. The meals are served in a large yellow box and organized similarly as a buffet for guests to help themselves. Grubhub Sales Spike During The Pandemic Last Thursday, Grubhub reported $459 million in revenue during the second quarter which is a 41% increase from the same time period last year, according to a company release. This beat analyst expectations when the number of diners regularly ordering delivery rose during the beginning of the pandemic. Their average daily orders increase by 35% and gross food sales increased 59% to $2.3 billion in this year’s Q2 compared to last year’s Q2. Grubhub also saw an increase in partner restaurants including major chains like Burger King, Chipotle, and McDonald’s. "The pandemic has been less of a temporary demand spike and more of a permanent catalyst, putting our business on a higher sustained trajectory," Grubhub CEO Matt Maloney and CFO Adam DeWitt stated in the letter to shareholders. Shifting To Online Ordering Is Not As Easy As It Seems According to an Upserve survey, 47% of restaurants said their transition to online ordering has been their biggest challenge during the pandemic. Fine dining and upscale restaurants found the transition particularly difficult because they did not offer online ordering before the COVID-19 outbreak. In an effort to withstand dining room closures, upscale restaurants have pared down their menus, stepped up their social media presence, and turned to third-party or in-house delivery. Fast-casual restaurants are the most optimistic about their future because their business models support off-premise operations while bar operators are the least optimistic. Restaurants Get Creative With Outdoor Seating With the majority of states closing restaurant dining rooms to reduce the spread of COVID-19, many states have blocked off streets, parking lots, and sidewalks to allow restaurants to expand their outdoor seating. Restaurants are now able to bring in much-need revenue by adding more tables to accommodate more customers. Cuba Libre Restaurant & Rum Bar is located in the middle of a busy street in Washington, D.C., and converted a parking lane into an open-air dining room protected by umbrellas and decorated with large plants. In Brooklyn, NY, Greg Baxtrom, chef and owner of Olmsted, has utilized the restaurant’s small backyard, which is typically used to grow vegetables and herbs, into a seating area arranged with benches and small tables. In Chicago, IL, Indian restaurant Rooh took over an abandoned alley next door and added patio seating and tables with guests sitting under a canopy of string lights. Bright Spots In A COVID-19 World Andrew Zimmern & Morgan Freeman Team Up To Support Restaurants Celebrity Chef Andrew Zimmern’s television and digital production company, Intuitive Content, and the Independent Restaurant Coalition have released a new ad to urge Congress to pass the Restaurants Act. The Act would establish a $120 billion fund to help aid independent restaurants during the COVID-19 pandemic. The ad is narrated by Academy Award-winning actor Morgan Freeman where he says in the commercial, “Neighborhood restaurants are the lifeblood of our communities. They are where we come together and make life-long memories and right now they are facing extinction.” The legislation has bipartisan support and would supply grants to independent restaurants that can be used towards their payroll, rent, PPE, and other costs. Local Fundraiser Goes Virtual This Year This week, Huntsville, AL hosts their annual Rocket Chef fundraiser, which typically includes chefs from local restaurants competing with mystery ingredients to make unique meals in 20 minutes or less. In an effort to prevent the spread of COVID-19 while keeping the event alive, the Rocket Chef organizers have made the fundraiser go virtual with highlights from past years being posted online and local chefs coming on to speak about their culinary expertise. The money donated by the fundraiser goes to the Food Bank of North Alabama which has raised over $200,000 since 2014. The Food Bank has used the money raised to start new programs and help feed food-insecure families during the pandemic. Quote Of Hope “I am optimistic that the industry as a whole is going to survive. I think there are a lot of really creative people who have been working their asses off innovating and figuring out what is going to make sense.” - Serena Dai, editor of Eater NY

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Stats Of The Week The State Of The Industry According to a new Yelp report, permanent business closures from COVID-19 now account for 55% of all closed businesses since March 1. Restaurants are experiencing even more devastation with a 60% permanent closure rate. Restaurants account for the highest total number of business closures, surpassing retail closure rates with a total of 15,770 restaurant permanent closures. Unlike retail, restaurant closures have fluctuated from March through July based on evolving and rapid changes to mandates that have been put in place at local levels. Barriers & Motivators Driving Consumers To Visit Restaurants According to a survey conducted by Modern Restaurant Management and Reach3 Insights, 4 in 10 customers are uncomfortable with dining in at a restaurant because they have a lack of confidence in their local government regulations and restaurant procedures. Those surveyed say their local regulations are not sufficient enough to effectively protect people from contracting the virus. While 30% of surveyors have dined in at a restaurant since the pandemic, others have purchased items from restaurants with 61% ordering food via drive-thru and 56% ordering via food pickup. Respondents cited restaurant employees wearing face masks and adhering to social distancing guidelines as their most important safety factor. Similar safety precautions, such as self-serve kiosks and temperature checks, were deemed less critical. What’s Trending The NRA Fights To Keep Restaurants Open In an effort to prevent further restaurant shutdowns, the National Restaurant Association wrote a letter to the National Governors Association and the U.S. Conference of Mayors to not reclose dining rooms that are operating within their local guidelines. Lawrence Lynch, the NRA’s senior vice president of science and industry, wrote that the restaurant industry has been diligent in its commitment to following safety protocols. The letter detailed the health and safety efforts that have been made to keep customers and employees safe during the pandemic. The purpose of the letter was to discredit inaccurate information about the role of restaurants in spreading the virus and to convince local leaders to keep restaurants open. NY Gov. Cuomo Enforces The Law On Restaurant Violators On Monday, NY Governor Andrew Cuomo announced that over 130 NY bars and restaurants were hit with violations by the state from Friday to Sunday. The Cuomo-controlled State Liquor Authority issued 52 violations on Friday, 53 on Saturday, and 27 on Sunday to restaurants violating social distancing and face mask rules. Over the weekend, 10 foodservice establishments had their liquor licenses suspended. Under Cuomo’s orders, if a bar or restaurant gets three violations, then the establishment will automatically have its liquor license suspended. Cuomo stated that it is a primarily NYC-based issue. “I want establishments to know that we will continue to diligently enforce the law. That’s what this is – it’s enforcing the law,” Cuomo told reporters during a conference call as he announced the new statistics. Papa John’s Vows To Hire 10,000 More Employees According to a press release by Papa John’s on Monday, the company has recently hired 20,000 employees and now plans to hire an additional 10,000 team members over the next few months. This hiring announcement follows a 24% spike in same-store sales for Papa John’s in North America from May to June. Rob Lynch, Papa John’s president and CEO, said in the release that this month has marked the third consecutive month of double-digit sales growth in North America. May was the chain’s strongest month in company history with North American same-store sales rising 33.5%. Lynch said in a May earnings call with investors that roughly 10% of that increase is tied to the effects of COVID-19. McDonald's Pauses Dining Room Reopenings McDonald’s announced on Friday that the fast food chain is halting dining room reopenings for 30 more days following the resurgence of COVID-19 cases around the country. Additionally, they are installing divider panels and barrier solutions for the front- and back-of-house operations. Once McDonald’s dining rooms reopen on August 1, the company will require customers to wear face coverings in its U.S. restaurants. The company is citing their decision by taking guidance from the Centers of Disease Control (CDC) which states that face coverings are an effective way to prevent the spread of the coronavirus. DoorDash Creates Contactless Ordering For Pickup Last Thursday, DoorDash, the popular third-party delivery company, launched a contactless pickup option. The function allows customers to order and pay at the restaurant by scanning a QR code. Restaurants that sign up will receive a unique QR code and signage to display at their window or at their point of sale. Customers will scan the code which will take them to the restaurant’s DoorDash pickup menu. They then order and pay through the DoorDash app and wait for their food to be prepared. This service is commission-free for restaurants and the company is waiving credit card processing fees through December 31. VP of merchant services for DoorDash, Kevin Huang, stated that this new feature was prompted by increased demand for both take out and contactless ordering during the coronavirus pandemic. “We think perhaps safety and health will be as high on the list [of priorities] as price selection, efficiency, or quality might be. So if you add in health and safety as another key pillar, I believe QR code-functional contactless abilities do need to expand and grow,” Huang said to Restaurant Business. Bright Spots In A COVID-19 World Local Chefs Come Together To Repay Local Nonprofit 10 Louisville chefs are teaming up to help raise funds for a local nonprofit organization that has offered critical support to independent industry workers during the COVID-19 crisis. Since March, Apron Inc. has been able to provide nearly 530 emergency grants for $500 each to assist with rent, car payments, or other bills to struggling restaurant workers. After four months, donations have dwindled and the nonprofit was unable to host their largest fundraising events due to safety concerns. To combat the loss of fundraising events, local chefs have come up with a fundraiser that allows up to 50 people to purchase a Chef in a Box for $50 each week. The boxes will include a tasting selection of the restaurant’s specialties, a favorite dish, a recipe card, a gift card or promotional t-shirts, hats, or sticker. "Through this whole pandemic, Apron has been just amazing to the restaurant community. We laid off almost 50 employees the day after restaurants were shut down, and I bet 20% to 30% of them were able to get help from Apron. More so now than ever, Apron means a lot to me for the way they have helped my staff during such a difficult time," Josh Moore, local chef participating in the fundraiser, said to Louisville Business First. Winery Reduces Costs To Help Restaurants Last week, Sleight of Hand Cellars began bottling 300 cases of Lewis Vineyard Syrah and is selling each case of wine for $1 to its restaurant partners. The “Restaurant Relief” wine can be sold by the glass at restaurants and the company hopes that the money saved by purchasing each case will help alleviate funds and help restaurant owners put that money towards running their operations and keeping employees. The discounted cases will be offered to restaurant partners that carry Sleight of Hand wines in Walla Walla and Seattle. Sleight of Hand co-owners, Jerry Solomon and Trey Busch, created this project as a way to give back to restaurants during this time of extraordinary hardship. “A large part of our success over the past 13 years is due to the exposure that our wines have received in many of the restaurants around Washington state,” Solomon and Bush stated on social media. Quote Of Hope “We’re all suffering. But at the end of the day, folks, what makes us strong is our belief in one another, that we will come together to help one another get back on our feet.” - Karen Washington, farmer and founder of Rise and Root Farm

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The NBA bubble is packaging players’ meals in a way to ensure their safety while keeping the earth in mind. Learn how the league is packaging meals and how it shows their commitment to the environment and player safety.

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