Restaurants Fight to Survive Coronavirus-Related Shutdowns

U.S. restaurant sales were forecast to hit $900 billion in 2020. With the impact of the Coronavirus coming into focus, the National Restaurant Association now expects industry losses in aggregate to total $225 billion. An article in the WSJ cites some of the steps restaurant owners are taking to avoid a permanent shutdown. 

  1. Taking pay cuts and asking employees that remain to do the same.
  2. Substantially reducing employee count.
  3. Asking banks for relief. Per the article, banks can be understanding: "'We are taking steps proactively so that we don't allow a temporary problem for our clients to turn into a permanent one,' said Century Bank's Chief Executive Richard Drews." 
  4. Asking landlords for relief. 
  5. Cancelling all orders and contracts that are not essential. Examples included pausing contracts with vendors like OpenTable Inc. or cancelling orders on items like linens.
  6. Immediately looking to improve online presence and the ability to communicate with customers digitally. Using this strategy to increase pick-up orders and delivery.
  7. For those in dire situations, deciding how to prioritize payments due.

Source: Ruth Simon | “For Small Businesses, It’s a Virus Chain Reaction” | The Wall Street Journal | 3/21/2020 | Visit

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