Restaurants all across the country are struggling to survive as state and local governments restrict indoor dining. In many large cities across the country, indoor dining is restricted to 25% or 50% capacity and in the nation's largest city, NYC restaurants remain completely closed to indoor patrons at least through the end of this month. Many owners have been able to cover their overhead and keep their businesses alive through a combination of carry out service and outdoor dining options. Creative restaurant owners have created sidewalk and even parking lot options for customers as a way to increase sales.
As cold weather approaches, the outdoor dining lifeline could be on life support, creating even more hardships for an industry that is struggling. Business owners will face failure if they are unable to cover mortgage and utility payments. And the restaurant industry employs hundreds of thousands of workers including host staff, wait staff, kitchen staff and many more across the supply chain. New York City alone has more than 10,000 restaurants.
Heat lamps and fire pits may extend well into the fall but customers will eventually be driven indoors by the cold weather. In the meantime, the Independent Restaurant Coalition is lobbying for a $120 billion grant to help these struggling businesses. Another round of coronavirus stimulus may help with additional Paycheck Protection Loans and a number of crowd funded social media campaigns seek to help the industry as well. However, if the state governments and restaurant owners don't find a way to open safely, it is likely that many of these businesses will close for good and the employees who rely on them for their livelihood will have far fewer jobs to compete for in 2021 and beyond.
https://www.cnbc.com/2020/09/09/cold-weather-brings-new-fears-for-struggling-restaurant-owners.html
It will be interesting to see how restaurants respond to the cold weather approaching. We had problems even over the summer with some workers testing positive and some deciding to stay on unemployment checks. More of the same is expected with the cold weather along with other problems such as the capacity and how workers will compensate for the lack of income. Alternatives are available such as Takeout or Delivery. A restaurant in my town got creative and installed a drive thru. However, this may only be a partial solution to a much larger problem with the uncertainty ahead. It will be interesting to see how owners respond and if the state governments can help them in any way to avoid closing for good and keep workers in the labor force.
ReplyDeleteIt will definitely be an interesting winter for restaurants. I know when I went to Canada recently even with it being quite chilly a lot of people were out on patios because of fire pits and heaters. I also think people will be more inclined to order from local business because they know small business are struggling during these trying times. I think when winter comes there will be some innovative solutions that are put into place that haven't been thought of. Who know maybe the cold will reinvent how we go to restaurants.
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ReplyDeleteIn response to the cold weather, restaurants are using heated lights. Hopefully, by the winter months more indoor seating will be permitted and nor restaurants design innovative was to ensure customers are warm.
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