Why the $48 billion Restaurant Revitalization Fund Refill Won’t Pass in the Senate
Easily. The Restaurant Revitalization Fund refill is up for a vote next week in the Senate, and Democrats and Republicans disagree on how to fund the $42 billion replenishment. Last month, the U.S. House of Representatives voted yes on a bill that would provide $42 billion in relief to foodservice businesses to the two-thirds of original RRF applicants that never received funding, and an additional $13 billion to other businesses that were hit hard during the pandemic like gyms and events venues. After more than five weeks of waiting, a bill for $48 billion ($40 billion for restaurants and $8 billion for other affected industries) is finally headed to the Senate floor next week. First it will be put up for a vote to begin debating the second round of funding for restaurants: a task that will likely be an uphill battle thanks to partisan differences. Although there was speculation that the vote on the Restaurant Revitalization Fund refill could happen as early as this week, the Senate is first voting on a $40 billion aid package for Ukraine, and the option to swiftly pass that legislation was held up by Sen. Rand Paul. The Ukrainian bill is likely to be wrapped up Monday, and following that on Tuesday or Wednesday, the Senate will vote to consider the Restaurant Revitalization Fund replenishment, which requires 60 votes. Once that occurs, the Senate will debate on the bill itself. But there is likely to be massive dissent from the right-leaning side of the aisle.
Emerging Trends in Restaurant Benefits
Health care expenditure will increase, and it’s not just the cost of health care. With winter behind us and summer approaching, it is time to begin planning for the 2023 benefits plan year. ‘Tis the season for plan review, benchmarking and forecasting. The key to success in this process is viewing the trends and national data through the prism of a restaurant operator. As we often emphasize, benefit strategies and results in the restaurant sector are different from other industries. While COVID-19 the disease may be waning, the impact of the COVID-19 pandemic on the needs and expectations of the restaurant workforce are becoming increasingly apparent. All employers should expect cost increases in their benefit programs not only due to medical trend, but also due to the demand for increased benefit levels. In addition, we see two other trends emerging that can drive an increase in your overall spend. “Burned out” and “overworked” are frequent descriptions for employees today. As such, many employers are adapting well-being and paid time off (PTO) programs to support employees with their physical, financial, emotional and social needs.
Independent Restaurants Show Signs of Recovery
Despite inflation. Although several signs indicate a recovery for independent restaurants, much of the sector continues to face significant challenges. Inflation continues to linger near 40-year highs, for example, driving up food and supply costs on top of wage growth that has outpaced inflation in foodservice. Independent restaurant locations, which represent 53% of the restaurant industry, grew by 1% (or 2,893 units) in 2021, according to a report from The NPD Group emailed to Restaurant Dive. Comparatively, independent restaurant locations saw a 5% decline in 2020. Visits to independents — both digital and physical — increased by 12% in the year ending March versus the year-ago period, when visits were down by 17%. Independent operators have increased orders of food and supplies from foodservice distributors by 27% year-over-year, about 5% above pre-pandemic levels. The Senate is expected to vote on a bill to add over $40 billion to the Restaurant Revitalization Fund next week. Despite The NPD Group’s findings, the Independent Restaurant Coalition predicts over 50% of independent operators that didn’t receive RRF grants could close within six months without increased federal aid.
2022 Restaurant Insurance Update
Industry observers say these key factors. The U.S. restaurant sector is gaining steam after coming out of a two-year pandemic that shuttered doors and curbed eatery revenues dramatically. According to the National Restaurant Association, the dining industry should generate $899 billion in revenues in 2022. That’s up from $640 billion in 2020. Even with robust growth, the restaurant industry faces steep challenges right now, with labor shortages, higher inflation, challenges with home food and drink deliveries, and ongoing food and supply chain shortages. With change in restaurant management so dynamic, industry experts say that now is a good time to review and even revamp restaurant insurance policies. “As the COVID-19 pandemic continues to affect businesses across the globe, restaurant managers have had to adapt their operations to stay afloat,” says Linda Chavez founder and chief executive officer at Los Angeles-based of Seniors Life Insurance Finder. “Along with making changes to their menu offerings and business models, many restaurateurs are also reassessing their insurance needs.” According to Chavez, while some insurers have been quick to adjust their coverage options in response to the pandemic, others have been slower to keep pace. “Restaurant managers need to be aware of the changing insurance landscape so that they can make informed decisions when selecting a policy,” she said. What are the big insurance issues impacting restaurants going forward?
How to Add Products to Your Restaurant’s Sales Mix
The process can be a little intimidating. The outlook is improving for many restaurants as COVID-19 restrictions loosen and guests make their way back to their favorite establishments. But the lingering effects of the pandemic continue to make this a challenging time for our industry as ongoing staffing issues and supply chain disruptions, in many cases, lead to reduced menus and shorter hours of operation. So what can restaurant operators do to add to their bottom line, create cost savings and generate brand awareness? One option is to develop and manufacture products that can be used and sold in the restaurant as well as in retail outlets. Product development is not quite as simple as just bottling your signature marinara sauce and upselling it at your front counter. The playbook for adding product lines to your restaurant sales mix is not so immediately obvious. There’s a lot that happens behind the scenes to get that bottle of your secret seasoning mix into hands of your guests or onto big-box shelves. The process can be a little intimidating. But the good news is: it can be done.
Dining Dress Codes Are Back
Leave the sweatshirt at home. A number of restaurants are betting that Americans want to get gussied up again, but not everyone is thrilled about the fashion screening. One unusually warm evening in the West Village, while other New Yorkers were outside walking their dogs in sneakers and T-shirts, a family of five sat primly in the front window of a formal dining room, each of them garbed in a stylish blazer. A couple in a velvet corner booth wore suits — his navy, hers powder blue. Pearls gleamed; freshly buffed shoes glowed. When a fashionably dressed couple stopped in momentarily for a peek at the menu, the sight was jarring: They were wearing jeans. That everyone was in full feather at this restaurant, Les Trois Chevaux, was no coincidence. They had been instructed to do so the previous day in a text message that read like a manifesto. Lest there be any confusion, details followed: “Blue jeans, shorts and sneakers are strictly prohibited.” Diners were “kindly” requested to wear jackets. For those without a jacket, a vintage Yves Saint Laurent model would be provided.
Uber Eats Set to Pilot Autonomous Delivery
With robots – cars. Uber Eats customers in Los Angeles may soon have their meal delivered by a robot or a self-driving car. The company is piloting both technologies in LA, with Serve robots doing short-range deliveries in West Hollywood and autonomous vehicles from Motional handling l0ng-range orders in Santa Monica. Autonomous delivery was one of a few new features unveiled Monday by Uber Eats during its second annual Go/Get product announcement. The others were voice ordering and the ability to use the Uber Eats app at sports stadiums. Ut robots are likely the most intriguing tool for restaurants, which have been looking for solutions to the high cost of food delivery. Starting Monday, Uber Eats users will be able to opt into the possibility of having a robot or autonomous car bring them their order from select restaurants. When the delivery arrives, they’ll get a notification and a code they can use to unlock the robot or car and retrieve their food. The company didn’t say which restaurants would be part of the pilot or how many robots and AVs would be enlisted. But it has indicated that it fully intends to scale autonomous delivery, albeit at its own pace.
Baby Formula Shortages
How Staten Island restaurants are stepping up to help. A restaurant owner’s expertise lies in sourcing food. That matter might be illustrated well with an idea that occurred to Richie Holmes, owner of Juicy Lucy in Ocean Breeze and Eltingville, plus Grant City’s DiFara Pizza-Juicy Lucia. While in New Jersey on a shopping trip, he stumbled upon a massive supply of baby formula. “So, we decided to donate $2,000 worth of baby formula to Staten Islanders. It would be nice if people could also drop off formula the restaurants for somebody who needs it — obviously sealed, new formula with a proper expiration date,” said Holmes. He put the word out on Facebook and was floored at the response: rather quickly, he received about 500 inboxed messages pleading for help. What further occurred to him from reading the notes was just how expensive is the product at an average of $40 a container. So not only is he hoping to stock a pantry but also to ease the financial burden a bit for the average family.
Did You Know?
McDonald’s says it is selling its Russia business. The burger giant is exiting the market after 32 years, saying ownership of restaurants there is “no longer tenable.” It is the company’s first exit of a major market in its history. McDonald’s on Monday said it would exit the Russia market altogether, saying that continued ownership of its restaurants there is “no longer tenable, nor is it consistent with McDonald’s values.” It represents the first time in company history that McDonald’s will completely exit a major market. The Chicago-based company, which had temporarily closed the restaurants in March over the war in Ukraine, said it would remove the trademarks from its restaurants in Russia and then sell the locations to a local buyer that would hopefully keep the company’s 62,000 employees. McDonald’s plans to continue paying those workers until the restaurants are sold.
Employee Tip
Becoming a mentor to women in the restaurant industry. There are countless articles published talking about the importance and value of mentorship, and we recently saw many of these voices during Women’s History Month in March. Many of these articles strike home at the essence and reasons why mentorship is especially critical for professional women in the workforce. However, for professional women in a male-dominated industry such as restaurants, these articles go beyond simple inspiration. They can be the difference of a short-lived career, or that of an enduring one where you can truly leave a lasting impression on not only women—but the industry as a whole.
Bielat Santore & Company – Restaurant Industry Alert
CAMDEN COUNTY, NJ “RESTAURANT – BAR – BANQUET COMPLEX” FOR SALE
Photo shown to illustrate “banquet room” only. Not actual representation.
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