"The Coronavirus: A Reigning Tyrant”

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.  

TEMPORARILY OVERHAUL ENTIRE  CONCEPT

Canlis, Seattle
https://canlis.com/

• Restaurant Background
• Concept
• Key Takeaways

<

>

Canlis, Seattle
​
Restaurant Background
Type: Fine Dining
Canlis is one of Seattle’s premier fine dining restaurants.  In 2019, Chef Brady Williams received the James Beard Award for the Best Chef in the Northwest.  This third generation family-owned restaurant, with roots and history tied to Hawai’i, has chosen to remain familiar and grounded.  Before the government recommended and then later imposed closures, their instincts were that Seattle didn’t need fine dining at the moment. 

• 8am to 11am:
  ​Breakfast Service called “The Bagel Shed” serves Bagels, Spreads, Breakfast Sandwiches and Coffee.

---

• 11am to 6pm:
  ​Drive-Through Lunch and Dinner called “Drive on Thru” serves Burgers, Veggie Melts, Canalis Salads and Ice Cream Sandwiches.

---

• A CSA Box called Canalis CSA is sold at cost.  This ends up being $95. A box contains a Whole Chicken from Sea Breeze Farms (approx 4 lb roaster), two Olsen Farm Pork Loin Chops, a dozen Eggs from Misty Meadows Farm, and a selection of Fresh Produce.A CSA Box called Canalis CSA is sold at cost.  This ends up being $95. A box contains a Whole Chicken from Sea Breeze Farms (approx 4 lb roaster), two Olsen Farm Pork Loin Chops, a dozen Eggs from Misty Meadows Farm, and a selection of Fresh Produce.

---

• Dinner Delivery called “Family Meal” does a bottle of wine along with dinner for 2-4 people.  Only 1-2 options are offered per day which includes:
  • For $58/person: Dungeness Crab Boil of lsen, Farm Potatoes, Portuguese Sausage, Spring Onion with Canlis Salad, Sourdough Focaccia, and Apple Cobbler, and Crab crackers (one per two people).
  • For $46/person: Dry-Aged Meatballs in Tomato Sauce, Mozzarella; Canlis Salad, Roasted Broccoli with Bagna Cauda, Cheesy Garlic Focaccia, and warm Chocolate Chip Cookies.

Key Takeaways

• For dinner-only or high-end establishments: Consider converting into an all-day format to extend sales.  Sell craveable and value-priced daytime items that are likely to draw repeat customers more than once per week - as opposed to fine dining which is reserved for more seldom, special occasions.  
  
  
  
• Potentially offer complete feasts (similar to holiday menus) and package them to be taken home.  Though not as lucrative as a typical check averages during regular dining room service, the higher margins will both improve the cost percentages and allow you to remain open.
  
  
  
• Offering CSA Boxes from your farm partners can be a way to help them move products.  Many do not have retail distribution and are not set-up to do retail due to a lack of a Point of Sale System.

MEAL KITS

Guerrilla Tacos, Los Angeles
http://www.guerrillatacos.com/etk

• Restaurant Background 
• Menu
• Key Takeaways

<

>

Restaurant Background
Type: Gourmet Tacos

Chef Wes Avila, who attended culinary schools in California and France, had cooked alongside some of the most recognized chefs in the world—Walter Manske at L’Auberge, Gary Menes at Le Comptoir, and Alain Ducasse at Le Centre de Le Formacion.  The typical menu consists of $5 - $6 Street Tacos and $10 Burritos.

Offerings

• For $150, you receive one roll of toilet paper.  Of course the T.P. also comes with 60 Tortillas, 5 pounds of Roasted Chicken and 5 pounds of Carne Asada, 1 pint of Red Salsa, 1 pint of Green Salsa, Onion, Cilantro, Rice and Beans, and a flat of 30 Eggs.  As to why they have thirty eggs, they explained, “We’re thankful to have many friends in the Los Angeles restaurant community who are selling us their supplies while they remain closed. In addition, large restaurant distributors, who did not predict the pandemic, are sitting on large bulk of eggs.
• For $50, you receive 5 lbs of Sweet Potato, 1 pint of Almond Chilies, 1 pint of Fried Corn, 5 potato Taquitos, 1 pint of Avo Chile, 1 pack Tortillas.
• For $40 you receive 1 lb. Spiced Wild Boar, toasted Pine Nuts, house-made Queso with Cotija, Jack, and Cheddar Cheese, Chipotle Crema, Avocado Salsa, Beans, Onion and Cilantro.

Key Takeaways

• Already in a takeaway format, Guerilla Tacos likely had the necessary materials available.  Keep a keen eye on when and where to adjust. Guerilla Tacos initially launched their package with 4 rolls, but waning toilet paper supplies dictated the ration.  

• Having made meal-kits available, you may also decide to continue to offer an ala carte menu from a window or backdoor.

Crossroads Kitchen, Los Angeles
http://www.crossroadskitchen.com/

• Restaurant Background
• Concept
• Key Takeaways

<

>

Restaurant Background
Type: Upscale Casual Dining

In March of 2013, Crossroads opened at the corner of Melrose and Sweetzer in Los Angeles. It serves Mediterranean meals in a refined environment.  Appetizers are $11-15. Salads $13-$14. Pasta entree prices are between $19-$24, with smaller portion sizes to encourage and Appetizer and an Entree purchase per person.

Offerings

• Kits contain the ingredients (pasta and a sauce) to make the restaurant's signature dishes at home. Each kit ($8-$30) features enough food to serve two people and could be refrigerated for three to four days.  The regular menu says Tagliatelle Bolognese is typically $19 during regular service, whereas meal kits for the same dish are $28. The restaurant also adds a 15 percent service charge on all orders to go to their employee fund.

Key Takeaways

• If your restaurant is set-up for it, do what you’ve always done.  
• High-end ethnic restaurants can make the natural transition into meal kits that are based on simple classics born of deep impactful flavors.

Convert into a Market

Tesse Restaurant, Los Angeles
https://www.tesserestaurant.com/

• Restaurant Background
• Concept
• Key Takeaways

<

>

Restaurant Background
Type: French Upscale Casual Dining

“Tesse is a French restaurant featuring the dynamic, continental-inspired cuisine of Chef Raphael Francois and Pastry Chef Sally Camacho Mueller, served in a chic dining room on Sunset Boulevard in the heart of West Hollywood. An extensive wine program from Jordan Ogron is supplemented by Boutellier, an exclusive wine store adjacent to the restaurant. A French-leaning craft cocktail program designed by Nick Meyer and Julian Cox is offered at the bar.”

Offerings

• Tesse has converted into Tesse Market.  Before shoppers are allowed in, they use disposable gloves, so as to not contaminate items they touch.  Offerings include, Fresh Bread, different cuts of Steak, Ground Beef Patties, Chicken, Eggs, Cheeses, Beer, Wine, Toilet Paper and more more Dried & Fresh Pastas (with vegan options), Veg & Non-Veg Soups, Sandwiches, Salad Kits, Local Produce, and paper products including, Toilet Paper & Gloves, Wine, Beer, and Water. 
  
  

Key Takeaways

• Use a mix of both standard re-sold grocery items as well as prepared foods and semi-prepared foods.
• Use of gloves for sanitation.
• If you find yourself with surplus dry goods or fresh ingredients, you can become a corner store bodega.
• You and your producers alike are sitting on goods and materials; households may be interested in purchasing these.
• Having made these meal-kits available, you may also decide to continue to offer an ala carte menu from a window or backdoor.

Donate Culinary Resources to a Non-Profit

AcWorld Central Kitchen
ThinkFoodGroup/Jose Andreas Restaurants
https://wck.org/

• Restaurant Background
  
• Concept
• Key Takeaways

<

>

Restaurant Background
Type: Fine Dining to Casual Dining Restaurant Group
Chef Jose Andreas and his team are experienced in humanitarian efforts through their World Central Kitchen.  They have fed people in crisis situations, like the residents of Puerto Rico in the aftermath of Hurricane Maria in 2017.  As Covid-19 has impacted his national restaurant group, the team decided to shut down restaurants nationwide and convert some into community kitchens, which are used to provide free meals to those in need.  Other for-profit restaurants that he kept open practice very organized social distancing. Central Kitchen is a non-profit group that raises funds as well as is supported by ThinkFoodGroup.


Key Takeaway

• Supplying those in need with food is a great cause.  As an independent restaurant, and not a large restaurant group, feasibility is most likely dependent on your cash flow requirement. If having some income during this period is essential, having a fiscal sponsor may be necessary.  Remember, non-profit employees get paid too.
  
  
  

According to World Central Kitchen:
"We are facing an unprecedented emergency, unlike anything this country has experienced. Beyond the health impacts of the COVID-19 coronavirus, our economy has ground to a halt — schools and businesses are closed, travel is restricted, and restaurants face an uncertain future. Traditional safety nets like school feeding programs, childcare services, and senior centers are struggling to stay open.
The reality is stark, but simple: Millions of Americans are out of work and struggling to put food on the table for their families.
But this moment is not without hope. We will get through this, and World Central Kitchen has seen what’s possible as we’ve fought on the front lines in Japan and California deploying systems to deliver meals to quarantined cruise ship passengers. Our Relief Team is now serving nearly 100,000 meals every day across the country, and we need you. Together, #ChefsForAmerica can make sure nobody is left behind.

What are we doing?
1. Delivering Fresh Meals
2. Putting Restaurants Back to Work
3. Feeding Frontline Healthcare Workers
4. Mapping Feeding Efforts"

Key Takeaways

• Supplying those in need with food is a great cause.  As an independent restaurant, and not a large restaurant group, feasibility is most likely dependent on your cash flow requirement. If having some income during this period is essential, having a fiscal sponsor may be necessary.  Remember, non-profit employees get paid too.

Partner with a Delivery Service

• ​Delivery Services
• Key Takeaway

<

>

Partner with a Delivery Service
Delivery services are very similar in fee structure.  They typically make money from commissions taken from the restaurant’s sales and delivery charges to the person ordering.  However, the details are where companies diverge from each other. Additional fees can include start-up fees, monthly fees, and exclusivity contracts.  Other factors to take into account are the number of users within a particular market and current promotions. With this said, figuring out if a restaurant would benefit from using delivery service is a multi-page article in itself.  However, the brief research showed us the following:
​

BiteSquad
According to Randall Sebastion of BiteSquad, it has the most market traction in Hawaii.  It also has no monthly fees or long-term obligations. This means, if no sales are made, the restaurant owes BiteSquad nothing.  Furthermore, as employment opportunities for your staff are difficult to comeby, and there is an uptick in delivery orders, BiteSquad can work with a brand to allow employees to deliver the product.  

---

Doordash 
Doordash has a 30 Day Free Trial.  This is a regular promotion.

---

Grubhub
Grubhub, a subsidiary of Yelp, allows restaurants to have their own staff do deliveries.  It currently has a promotion which, according to a Grubhub Press Release, “Grubhub is temporarily suspending collection of up to $100 million in commission payments from impacted independent restaurants nationwide."  

---

Uber Eats
According to an Uber Eats Press Release, the company has waived the delivery fee to customers.  This will increase spending, however it still charges a commission fee to its restaurant partners.

Key Takeaway

• Randall Sebastion of BiteSquad suggested that you try multiple companies out as many consumers have their prefered platform.  However, he did note to make sure that there are no exclusivity contracts if you attempt this.

Deliver Food Yourself*

• Deliver it Yourself
  

<

>

Deliver it Yourself
This can keep your staff employed, provided they have a vehicle.   It should be noted, there may be liability issues if an employee gets into an accident or gets hurt while making a delivery. This incident may not be covered under your insurance policy if delivery is not part of your regular business.  You will want to consult with a Human Resources Agency or attorney if you plan on this as a potential option.  
​
Beyond the typical driver, there are novelty ideas.  A London restaurant called Bistrotheque has a Drag sensation “@A Man To Pet” bike-couriering its food around to home customers.  There is a topless food delivery service called Boober Eats done by Lucky Devil Lounge, a Portland strip club.  luckydevillounge.com

Final Thoughts

I’ve long thought that the restaurant bubble would burst and reset leaving the strong to survive, but I'd never imagined the narrative to look like this.  The hard decisions all point to making sure that there is something to come back to after the dust settles. For those who make it to the other side, improvements can be born of the hardships.  As it stands, predominantly dine-in restaurants do not already have takeout order systems, packaging, or allotted storage space. This circumstance will force these changes. Whether or not they become permanent will be assessed later.  Whether you are a small business or a behemoth, be inspired to explore your own epiphanies. Good luck in your fight, find peace in your fear, and if your stability falters, find strength alongside your peers.