How the Restaurant Industry is Planning to Come Back

Virtually every industry has been impacted by COVID-19, but few, if any, have suffered quite like the restaurant industry. Restaurant workers typically do not get paid unless they are working, and mandated lockdowns and shutdowns have caused many establishments to either shift operations or cease them altogether. Either way, both avenues have typically resulted in substantially less revenue. 

That being said, the restaurant industry is eagerly keeping an eye on the state of affairs and thinking about how it will emerge on the other side of COVID-19. 

Jim Balis, the Managing Director of the Strategic Operations Group for private investment firm CapitalSpring, says restaurants will need to deal with capacity limitations based on state and local ordinances and reopening phases. “Restaurants, for example, might be able to open first at 25% capacity and then expand to 50% capacity,” Balis said. 

Then there are landlords. Balis noted that restaurants who have been negotiating with landlords while they’ve stayed closed may no longer benefit from rent concessions, even if they open at a lower capacity. 

The restaurant brands that CapitalSpring works with are focused on practical matters that can help when restaurants reopen, such as making sure bathroom doors remain clean and installing better ventilation systems to keep air from blowing directly into busier sections. Brands are also looking into contactless payment methods to avoid the use of cash and credit cards, which frequently change hands. 

“Restaurants are looking at staggering employees,” Balis said. “For example, a certain group of employees work Monday through Wednesday, and the other works Thursday through Sunday, alternating every week so that everyone has access to the same number of hours. Menus might also be altered in order to increase labor efficiency and lower food costs so there is less preparation and waste.” 

Then there’s the matter of alerting loyal customers about the reopening itself. CapitalSpring is seeing a wide range of strategies in this regard, as some brands want to spread the word about reopening far and wide while others will opt to take a quieter approach to test the waters. 

“For the most part, our brands are thinking about reopening their restaurants on a Monday for a soft opening versus a Thursday or a Friday,” Balis said. “We have some investments that are eager to let everyone know they’re open and others that plan to just put up a banner or post on social media.” 

One restaurant brand that is already planning its reopening is Buffalo Wings & Rings. The sports restaurant franchise began to solidify its reopening plans even in the early days of COVID-19. 

When restaurants began to close, Buffalo Wings & Rings immediately created a task force to assist franchisees in dealing with running a business with only off-premise sales and to help understand and navigate the challenges of submitting for government assistance programs.  Simply put, the objective of this team was to ensure that every franchise store survived the shutdown. They had weekly conference calls to ensure that everyone was up-to-date on the latest developments and to share best practices and learnings from both company and franchise locations.   

“Project Survival was tasked with adapting our business to keep our stores open despite having dining rooms closed, and we did a fantastic job adapting to contactless curbside pickup as well as delivery,” Chief Operations Officer Bob Bafundo said. 

By April 1, the company had formed two additional teams. 

“Project Rebound was focused on redefining the standards of our brand for this new normal and Project Slingshot is all about how we grow the business on the other side of this crisis,” Bafundo said. 

The brand has developed a detailed reopening plan that covers everything from rehiring to restaffing to retraining employees on the brand’s new standards. For one, prior to each shift, employees will have their temperature checked and be asked whether they are experiencing any symptoms of COVID-19. 

“We have had to cut capacity in our dining rooms and ensure that tables are set up in a way that is consistent with social distancing rules,” Bafundo said. “There will be parties of no more than six people at each table, and we’ve increased the amount of hand sanitizer stations available for both employees and guests. These are just a few highlights that come to mind but each strategy is unique depending on location and state/city guidelines.”  

By adapting to the ever-evolving situation that is COVID-19, creating a solid game plan for the future and respecting continued social distancing guidelines, restaurant brands will ensure that their reopenings go as smoothly as possible.