Come on, folks. I asked a sincere question. Somebody please tell me what this is all about…from a diner perspective.
Okay. The rest of your comments seem better suited for some other non-food platform.
There’s nothing vague about the SF Bay Area shelter-in-place orders. They’re so detailed that people need FAQs to explain what they can and can’t do.
This isn’t a top-down process. People had already stopped going to restaurants and started panic-buying and hoarding. Public health officials formalizing and regulating that is a good thing.
The next step is for elected officials to come up with a massive relief program to make up for shutting down most of the economy. And in the not very long run, in the US this seems likely to lead to universal health care coverage and proper preparation for the next pandemic. Internationally, maybe it will lead to more responsible practices
I’m not sure there’s much in this bill to bail out most independent restaurants. Loan forgiveness is contingent on keeping employees on the payroll, but with no tips, a lot of them would be getting way less money than usual, and would be better off with unemployment, at least for the four months the feds are kicking in an extra $600 a week.
Given most restaurants’ tiny margins, paying rent and other fixed costs with loans would leave many places with too much debt to survive.
You should see what the cruise community - passengers not the companies - is crying over. I don’t have much sympathy.
Yes, this has been unbelievably harsh on restaurant owners and their staffs. I find myself depressed thinking about what’s happening right now to all of the good people in all of our restaurants. And I wonder what our dining scene will look like on the “other side”. I keep trying to think in positive terms, but it’s hard right now.
I think at least for the four months the feds are kicking in the extra $600 a week, some of the laid-off industry people I know might be making more money than usual. Helps that in California tips are counted as income when calculating the base unemployment benefits.
Good to hear.
This is just a question of mine, and if anyone has insight on it, please explain how it works for me. I’ve only thought of a few possibilities, none confirmed.
Regarding how Chef José Andrés sets up these relief kitchens, during times of disaster. He also completely closes his restaurants, to reformat them into additional work stations, that prepare and assist for large banquet style meals. His staff also are mostly eager to jump on board, to help the hundreds of thousands in need.
Now… he didn’t just start doing this with the Covid crisis. As many of us have noticed, he’s been doing this for many years now… I think almost 10 years. During these times, he shuts down his restaurants, and thus, there’s no customers and no income coming in from this channel.
How exactly does he keep all his restaurants afloat? Does he have some kind of ridiculous financial backing, that is willing to front him the money?
His humanitarian work is absolutely to be admired, and is how he will finally surpass Ferran Adria as the greatest known Spanish chef across the world. It is also (not to make it sound negative), quite a publicity tool. But nevertheless, it seems this has become his passion, and good for him. Still, how the heck does he keep his restaurants alive, if they aren’t making money the normal way?
My thoughts are, that if he’s somehow been able to keep all his restaurants from closing, during these periods over many years where he turns them into assistant kitchens for the relief efforts without income, then other restaurants should certainly have some chance in being able to do the same using a similar method. That said, I do know now how deep the funds of investors he’s been able to reach into, or if miraculously this comes out of his own pocket… or how he gets the money to sustain employees/rent/expenses at all.
On another side note, I noticed Sqirl has taken over the industry relief kitchen program that was formerly helmed by Mozza. It’s sponsored by Maker’s Mark. What a great deal, one gets the funds they need to keep running, the other can associate their name with a good deed. I was just at Sqirl when they were still doing takeout, and I noticed (what do you know?!) a José Andrés book right in front of the cashier. Channeling the spirit of his work into their own.
I know you posted this with good intentions but no its not just that easy for other restaurants to do. Theres a reason so many restaurants are closing.
Jose Andres clearly has the funding, whether its from grants, investors, nonprofit partnerships, generous donations or a great personal wealth. Also the knowledge to organize such a large scale catering operation, which takes a different kind of skill than cooking in restaurants.
Heres an organization in LA partnering with chefs to provide meals
what some other big names in food have to say about the fate of restaurants:
Thanks for the reply and article @butteredwaffles
I’ve definitely been considering a lot these things as well. I just wonder, as the article says, how very little that “takeout and delivery — and selling gift cards and swag online” are doing to help, and the growing concern that no matter how large the number looks upfront, government assistance of billions-trillions divided up among everybody will essentially be portioned into pocket change.
Thus, the thought came to me, that seeking help from a particularly rich and wealthy investor might be one of the few remaining routes, if there are enough of them out there, and enough are generous to be a savior to several restaurants each. I do also take into consideration, that the markets are really down, and investors are weary of making risky bets right now.
I cited Jose Andres’ previous ten years of closing his restaurants down, without worry of not reopening, because I don’t know if he started with all that backing, and am curious how he put it all together. The writers of this article are Danny Meyers and company, and it’s hard to imagine he can’t find the investors, yet some of his places are closing.
But yes, I see your point in that it’s not just so easy to walk up to someone’s door, knock, and get money, especially for a small neighborhood place with no reputation and influential support.
If I can just paint an unfortunate picture for you, one of the restaurant owners I’ve known for a while, told me how for years they would ignore calls and invites from businesses/investors wanting to start a relationship. But they simply ignored them. Now with the crisis, they’ve started making calls to some of the same people who once tried to do business together, to see if they could help, but now they’re on the receiving end of not getting a reply.
I should have said I also admire Jose Andres culinary and humanitarian contributions to our world!!
Most chefs also don’t have an empire like his. There’s some serious money and trust behind him to open so many restaurants of his caliber, from the uber experimental to the more lowkey and across the nation at that.
But yeah he must have some wonderful philanthropic investors and connections.
It really is sad whats going on. I left the restaurant industry last year after nearly a decade and cant imagine whats going through the minds of all the chef/owners who have strived to keep that independence. Even successful chefs who have investors are incredibly wounded right now.
It’s a skill/talent in itself to be able to attract that kind of backing. It’s pretty well documented how often rich investors lose a lot their money, but don’t mind if they can be associated with some great purpose.
You make a good point, I forget that being independent and not feeling reliant on anyone (save wholesale suppliers and customers) is something important to people who own something. Not wanting to sell stock or percentage, and feel someone else owns what’s rightfully yours. Giving up ownership up to shareholders gradually leads to having to yield to other people’s ideas, and so often ends with the founder finding their creativity boxed in, and ultimately leaving their own business.
Excellent story with details and practical advice I haven’t seen elsewhere for freelancers and gig workers who want to collect unemployment insurance:
I was started to read that Shake Shack is now a $1.6 billion company.
While restaurants that are recipients of PPP loans have cash, it remains unclear whether they will be able to spend the cash within the current guidelines of the PPP provisions. With state-mandated closures, restaurants may find it impossible to take advantage of one of the cornerstones of the PPP program: loan forgiveness.
Does anyone have experience running a small family business (retail and food) it’s a convenience store?
Trying to help an older family member we already helped them get a ppp loan but now they need help with inventory, POS, basic operations, simple accounting etc.
Any information, referrals, or messages would be greatly appreciated.