104: Restaurants & COVID-19 - Live Call 3-16-20

Impromptu call where we talk about COVID-19's impact on the restaurant industry. Jaime Oikle from RunningRestaurants.com is joined by Roger Beaudoin of RestaurantRockstars.com as we cover what we're seeing up to the minute. Thanks also to Darren Denington of ServiceWithStyle.com for chiming in as well as our audience for feedback and tips. (Obviously this was recorded at a moment in time and the situation will continue to change.) Stay tuned to us at RunningRestaurants.com for future updates. Quick Takeaways... - Unprecedented situation with no road map to work from - It will be an "hour by hour management challenge" - Gov't mandated restaurant closures expanding - total or takeout/delivery only - CDC health and cleaning guidelines paramount for restaurants - Increase your cleaning routines and intensity - Restaurant have & will see dramatic decreases in foot traffic - Self quarantining and social distancing will continue - Revenue Options in short term -- Delivery & Takeout become key -- Limit menu items to most profitable -- Limit menu to those that travel well -- Develop new menu items & options that are good for takeout/delivery -- Consider joining delivery portals for additional exposure -- Consider getting your own takeout software set up for additional control -- Promote gift card sales to your current customers as a way to generate cash flow -- Consider offering discounts on gift cards or take out orders -- Communicate to current customer base via email and social to inform them of your status / offers - Cost Management -- Work through existing inventory -- Explore opportunity to return unopened boxes/packages of goods to purveyors -- Negotiate / talk with lenders / landlord / business partners about flexible payment options -- don't ask, don't get -- Staffing issues will be raised -- who and when to cut hours will be tough -- Just temporarily close if staying open will cost more than staying open - Lessons for Future -- Have a diversified revenue mix - i.e. dine-in, takeout, delivery, catering, special events, etc. to protect against disruption -- Have menu cost understanding so maximizing profits always Have crisis plans in place -- Maximize good times to get through tough times - Other Opportunities / Options -- Support the community when possible - i.e. feed first responders and kids in need -- Opportunity to strategize about the future and build a stronger more resilient business -- Filing for unemployment may be best option for some -- Federal disaster relief options may develop - keep tuned in and ready to act -- Thank your staff as much as possible -- encourage customer tipping for takeout/delivery to support wages -- Keep apprised of your local rules & regs as situations will change Remember... "This too will pass..." & there will be pent up demand on the other side of this. Good luck.