Navigating COVID-19

Restaurant Finance Strategy for the Covid-19 Pandemic and Beyond

5/15/2020

Unless a restaurant has deep pockets, fighting to stay alive through conducting any business possible is the best recourse. This may not make up for all operating expenses including paying the rent and feeding your family, but it’s better than nothing. Beyond the ability to change a restaurant's business model to fit the limitations of closed dining rooms, supplemental financing may be required to keep the business afloat. There are financial tools that are used to raise capital and make up budgetary shortfalls. They are: 1) Debt Financing 2) Equity Financing. There are other options like grants, which are similar to receiving a scholarship, however these can be competitive due to their “free money” nature and are never guaranteed until the check is deposited.

The breakdown of financing tools are as follows:

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New Rules for Takeout Beverages

4/19/2020

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image from Jigger & Pony (jiggerandpony.com/)

The Executive Order granting off-premise privileges to on-premise licensees and take-out cocktails has passed! The order used broad language, and pushed the specific rules to the county level. Please note the following is not legal advice, but rather general ideas of how to start making sense of it all.

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Proposal: Granting Off-Premise Privileges to On-Premise Licensees in the State of Hawaii

4/6/2020

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The 2020 Covid-19 pandemic has severely hurt Hawaii’s food and beverage industry, an industry that’s been deemed essential. Many bars and restaurants have laid off employees, or have shut down. However, with minor adjustments to a food and beverage establishments’ business model, the number of bankruptcy filings caused by these temporary closures can be minimized.

Hawaii Beverage Guide has been working with Hawaii Restaurant Association (HRA), Young's Market Company of Hawaii and Cherry Co to help address the issue. So far the following letter has been sent by HRA to Governor Ige as well as various State of Hawaii Representatives and Senators.

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"The Coronavirus: A Reigning Tyrant”

3/31/2020

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By Jamal Lahiani
Social distancing, quarantines, and mandated closures, due to worldwide events, have unraveled the fabrics of our cities and states at head spinning rates. Temporary closures of businesses and the layoffs that followed are red flags that recall the economic crisis of 2008. Some economies are still feeling the effects of this slump from a decade ago. As articles regularly compete for our attention, the only thing certain for our service industry is a looming uncertainty. This time will challenge our ability to make clear decisions, to discern truth from fiction, and to choose between remaining steadfast or retreating.

Businesses are prudent buoys to preserve for after things settle, as they will help expedite a return to normalcy. To make sense of this chaos within our industry, one can look into the future, or at least something that resembles it. As many states and countries have more advanced Covid-19 situations than Hawaii, each, though unique in circumstance, can offer relevant advice. The tactical adjustment of our industry peers from other regions have many commonalities that stand out. Beyond closing down, businesses ranging from upscale to casual have shifted away from their varied service styles to a take-out and delivery format. This, however, comes in a multitude of variations.

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