Restaurants in Trouble

[MRG]

Our local restaurants are busy, too busy. Full of tourists who are in denial. They've even been going to places that generally are local only. Our case count shows it, up 400% in 4 weeks. There's talk of going back to safer at home. We've only eaten outdoors, limited to once a week. I'm thinking we should cut it back .

[harllee]

Quote:

Originally Posted by MRG Our local restaurants are busy, too busy. Full of tourists who are in denial. They've even been going to places that generally are local only. Our case count shows it, up 400% in 4 weeks. There's talk of going back to safer at home. We've only eaten outdoors, limited to once a week. I'm thinking we should cut it back .

MRG--I think you are in Colorado. Is inside dining allowed? Are there limits on the number of diners allowed inside? Are masks required? Are bars allowed to open? Has Colorado considered doing what states like Maine have done and allow in people from other states only if they quarantine for 14 days?

[audreyh1]

Too bad. If you live in an area with tourists coming from all over US - yes, bad news, as they are bringing more infections with them and obviously couldn’t care less if they spread it to new areas they visit.

[W2R]

Here, restaurants are open for dining in with 50% of full capacity and masks worn unless actually eating. Mask compliance is very good. We have been eating lunch inside our favorite restaurant every day. While business is starting to pick up, the tables are well spaced so that other tables aren't close by. There are a couple of tables outside, but in this hot, rainy summer weather nobody eats out there.

Our restaurant is also doing a brisk take-out business; for that you call in the order, call when you arrive in the parking lot, and they bring it out to the car.

We had lunch delivered today because I had a roofer here and couldn't leave. Besides, we are expecting a big crack-down by the governor sometime soon, so might as well get used to not dining in any more.

I think that between eating in, eating outside, pick-up, and delivery, our restaurant is keeping afloat and might have nearly the same amount of business as it had before the pandemic.

Several restaurants have gone under due to the pandemic, one of the most notable being K-Paul's.

[Elbata]

Besides Covid, another reason why not eating out--The price of food. I look at what I get, the quality of the food and then the bill, not including tip, it doesn't add up. It's just getting to be no fun eating out anymore. Tough situation though for these owners of restaurants, I feel bad for them.

[Midpack]

Quote:

Originally Posted by harllee One question that I have is why some restaurants refuse to do curbside pick up. Because we are high risk DH and I have decided to not go in any restaurant and just do the curbside pick up, we try to go at less busy times and leave a very nice tip and we have several restaurants that this works out great. A few restaurants have told us we have to come in and pay and pick up our order and we say no thanks and go to a different restaurant. I heard that one of my formerly favorite lunch spots was in financial trouble and may have to close so I reached out to the owner to see why they are not doing curbside pick ups and she said the credit card company charged more for payment not in person. I had never heard that before but I suggested to her she could tack on a small curbside fee so she would not lose that business. I hope restaurants get more creative so they can stay open.

What makes you think every restaurant that could stay afloat by adding carry out and whatever other alternatives hasn’t already? It’s an easy add for some restaurants, and not feasible for others. You’d have to see their income statement, their fixed costs, etc. to know. I suspect most restaurant owners are far better able to decide what’s possible and what’s not. Some of them may have been barely scraping by before Covid, there’s no way they can adapt to this horrific downturn with Covid restrictions on top of it. Most customers don’t fully appreciate what it takes for any business to survive, there’s a lot we don’t begin to know...

[jazz4cash]

We had too many restaurants before all this started. One of my favorite places has has a sign that is obscured by trees and brush. The reviews for the place mostly say "I had no idea this place was here and it's really really good" or something to that effect. I was worried about their viability before. When the shutdowns hit, they made no effort to have curbside or takeout. They didn't even bother to post a sign on the door to encourage guests to check back when things open up. No messaging on their web page indicating the closure is temporary. They are doomed because of bad management. Like many other businesses that were marginal before the pandemic (e.g. many retailers)

[MichaelB]

According to BLS data (here), in 2018 44% of the total average food budget was spent on “food away from home”. More than entertainment or health insurance, and just a bit less than rent or vehicle purchases. When facing a sudden major recession the savings rate always shoots up and people immediately cut back on discretionary expenses. Restaurant food is among the top categories cut.

This loss of diners has less to do with restrictions and unemployment checks and more to do with risk of infection and financial fear. Getting people back to previous levels of spending on discretionary items will happen when the health risks have ameliorated and expectations about financial future are positive.

The big national chain restaurants are more likely to survive the short term because they have more leverage to deal with landlords. Rent is the big weight local individual and mom-and-pop eateries can’t afford.

[JoeWras]

Quote:

Originally Posted by audreyh1 Too bad. If you live in an area with tourists coming from all over US - yes, bad news, as they are bringing more infections with them and obviously couldn’t care less if they spread it to new areas they visit.

Hey, we had this vacation booked and planned.

We're going come hell, high water, or a little cough!

Seeing this same behavior at the NC coast and Mountains.

[Car-Guy]

We've been dinning in a couple of times a week since the restaurants around here re-opened at 50%. Partly because we like to dine-in and partly to support our local businesses. The CV case count in our county is still low (under 150 in total) and less than 50 of those are estimated to be active. And since the restaurant dinning rooms here are typically small to begin with, when they operate at 50% there's not a lot of people in their dinning rooms even at lunch hour. We tend to go off hours anyway so most of the time there are only a few other tables in use.

They seem to be following the guidelines a lot better now than they were just a month or so ago. Face masks are required until you sit at a table. They use throw away menus, throw away knives, forks, plates and cups, tables are sanitized after each use, condiments have been removed from the tables, hand sanitizers are everywhere, staff wear masks and gloves all the time and the list goes on.

So I don't feel anymore at risk eating out here than I do grocery shopping... Maybe if we had a big outbreak around here I'd feel different.

So far, ALL the restaurants in my roaming range are still open. No closure signs, no reduction in operating hours, etc. Matter of fact, a brand new one just opened a few weeks ago.

[Bamaman]

One great "meat and 3" in my hometown is closing next week. They lost their catering business for office parties and medical salesmen as employees are working for home and offices don't want visitors--25% of sales. Then they were selling take outs out the front door. Now they're sitting 50% of customers inside, they're still at 50% of previous sales. But expenses are still 100% of prior COROVID 19. No profit is in sight for them.

[CDRE]

I have recently dined at a few restaurants indoors and will not return because they blatantly neglected to follow COVID-19 safety regulations and protocols. The restaurants that try to do the right thing will at least get more business from me.

[harllee]

Quote:

Originally Posted by Midpack What makes you think every restaurant that could stay afloat by adding carry out and whatever other alternatives hasn’t already? It’s an easy add for some restaurants, and not feasible for others. You’d have to see their income statement, their fixed costs, etc. to know. I suspect most restaurant owners are far better able to decide what’s possible and what’s not. Some of them may have been barely scraping by before Covid, there’s no way they can adapt to this horrific downturn with Covid restrictions on top of it. Most customers don’t fully appreciate what it takes for any business to survive, there’s a lot we don’t begin to know...

I don't think every restaurant could make it if they added take out but some will. The ones I know of that are making it have a brisk business of take out as well as inside dining. Most of the ones in my town that have already shut down did not try take out or delivery. There is no way most restaurants in my area can make it on only inside dining because no one is eating inside --they have to do something else-- take out, delivery, outside dining, etc. I believe that if I were a restaurant owner I would try these other things before I shut down or filed for bankruptcy. Some restaurant owners are just stuck doing it the same old way--those that don't try creative measures are not going to make it.

Today I called a lunch place that I have heard is in financial trouble to give them some business--I told them I needed to pay over the phone and have my order delivered to my car. They said they could not do that because of an extra charge by the credit card company for phone orders. So I said sorry, I can't order from you and I called somewhere else that was glad to do curbside pick up. I predict the cafe that would not deliver to my car will be out of business soon.

[Sunset]

Quote:

Originally Posted by harllee ..--I told them I needed to pay over the phone and have my order delivered to my car. ...

Our favorite takeout chinese restaurant made this exact switch. It takes them a couple of extra minutes compared to normal, but they get lots of business.
Of course people are used to takeout from them.

Compared to another restaurant near us, people didn't normally do take out, so why would people suddenly go there thinking of takeout. The restaurant went bankrupt due to no customers. It just was not their business model to do takeout so it was doomed.

[audreyh1]

Quote:

Originally Posted by JoeWras Hey, we had this vacation booked and planned. We're going come hell, high water, or a little cough! Seeing this same behavior at the NC coast and Mountains.

Someone told me today that a niece and boyfriend are going to Miami on vacation next week because “the trip is already paid for”.

[O2Bfree]

I'm not sure how, but the guy who bought the restaurant that my folks sold in 2011 is still not only making his payments, but continuing to make double payments. The payments go to DM as DD insisted on carrying the contract. She's perfectly willing and able to let them slide for awhile if necessary, pending what the contract management company will allow, but the owner just keeps coming up with the cash. We've been in there a few times these past months and the help says business has been slow but steady. They're doing inside dining and takeout, but not curbside at this time.

[MrsHaloFIRE]

I keep seeing here and on FB that "we need to go to the restaurants we want to remain open." What happened to the free market system? Say 80pct of restaurants close. Then the bldgs will be empty for awhile. Then New ones will open and fill in the gap when the market supports it. Restaurants on my city tend to lifecycle anyway. Yes I hate when one I like closes but i also kniw there's a new entrepreneur that will open and introduce a new one I may like as well or better. When ppl get more comfortable going out, they will. I don't think the industry is going to die off.

[RobbieB]

It will adapt or die. I see more order online and pick ups, more drive throughs, more grub hub operators, and more deliveries. I keep going to the places (except the fancy ones) that I've been going to in the past.

The fancy places gotta be sucking gas. Ain't no way I'm taking out a hundred dollar dinner in a bag.

[Moemg]

Quote:

Originally Posted by RobbieB The fancy places gotta be sucking gas. Ain't no way I'm taking out a hundred dollar dinner in a bag.

Robbie, I think you nailed it . If I am going for that kind of dinner I want atmosphere and not a brown bag . We have been doing some take out but some food does not translate well to take out . We have settled on Chinese food for take out.

[RobbieB]

Chinese, Japanese and Mexican works well. Except anything deep fried, gets soggy. Burgers we eat in the car after the drive through. They don't travel well either.