A Step Back for Indoor and Outdoor Gatherings
In New Jersey. With the number of COVID-19 cases in the state rising at an alarming rate, Gov. Phil Murphy today said he must “pull back the reins” on private and public indoor gatherings. He said he will sign an executive order to limit such gatherings to 10 persons, down from 25, effective tomorrow at 6 a.m. Likewise, outdoor gathering limits will be pulled back from 500 to 150 persons. Murphy said exemptions for both indoor and outdoor gatherings will include religious services or celebrations, political activities, wedding ceremonies, funerals and memorial services, and performances. The indoor event exemptions will continue to be limited at 25% capacity, but with a maximum of 150 people. Additionally, to avoid disruptions for events scheduled for this coming weekend, Murphy said the reductions on outdoor gatherings will go into effect on November 23.
NJ’s Restaurants and Downtowns Need Liquor License Reform
NOW. New Jersey’s liquor license laws are antiquated and have been in need of reform for a long time. A bill recently introduced by state Sen. Vin Gopal (D-Monmouth) addresses the outdated liquor license laws by creating a new type of license that would allow restaurants to serve non-spirit alcohol (beer, wine, and cider) at a significantly reduced cost from that of a full license. This bill is similar to legislation Assemblyman John Burzichelli (D-Gloucester) has been promoting for a number of years. With our small restaurant owners struggling to survive from the economic havoc of COVID-19, this reform is needed now more than ever. But pandemic aside, this reform is needed to bring New Jersey’s liquor laws into the 21st century and make us more competitive in the region. If saving small businesses and boosting our downtowns is not enough of an enticement, then think about the potential revenue for state coffers.
A New Jersey Restaurant with a Coronavirus Scare Stayed Open
Because of the generosity of a neighboring barbershop. A New Jersey restaurant was able to continue operating during the pandemic thanks to the generosity of a nearby barbershop. Following a positive coronavirus test among its staff, the Würstbar restaurant in Jersey City decided to temporarily close down to allow for quarantine and staff testing. “Würstbar is a small team run by an extremely hardworking and loyal staff,” the company said in an Instagram post. “Running the restaurant with only non-exposed employees isn’t an option for us at the moment.” According to Aaron Kahn, Würstbar’s owner, November 5 was to be the restaurant’s last night of service — a major gut punch, as his business and nearly 20-person team had managed to stay afloat since the start of the pandemic.
Why Things Could Get Worse for Restaurants
Before they get better. Look in one direction and everything seems good for the restaurant business. The fast food and fast casual businesses have largely recovered from their spring doldrums. Casual dining concepts are seeing significant improvement. Many are now profitable. We’re hearing again about normal things like plant-based food and share buybacks. Oh, and a vaccine is coming. But so, too, is winter. And that winter could prove to be a long one, especially for full-service concepts and independent restaurants that had hoped for some improvement by now. Congress and the president have not approved a stimulus package, and the economy probably needs one to provide a bridge to the vaccine. At least some restaurant executives worry that consumers are running out of money and saving again meaning they’re eating out less. The good news is that consumers have proven their willingness to get takeout and find ways to eat restaurant food. And if anything, restaurants have learned to serve these customers over the past several months. Also, consumers are spending less on entertainment and travel, making them more willing to spend at restaurants.
4 Questions Answered for Restaurants
This week. (i) Would restaurants push to keep dining rooms open even if science showed the sales benefits would heighten health risks? Let’s rephrase this one in starker terms: Would the business push profits over public safety? No matter how the question is phrased, it’s a discomforting one the business should answer carefully if it doesn’t want to emerge as the next tobacco industry, more intent on protecting sales than the health of guests and employees. (ii) Will the industry see another stimulus package in short order? Don’t count on anything until January, or at least that’s what politicians, economists and commentators are saying. Where they stop short is indicating when in January that help for the industry or its customers might come before Joe Biden becomes our president or right afterward. (iii) What the heck is “cuffing”? Cuffing refers to a hookup through the winter of persons lacking significant others to keep them warm and hugged. Hinge is the dating app that helps them find the candidates. (iv) Does Anthony Fauci not like restaurants? Like President Trump, the restaurant industry has had a love-hate relationship with the nation’s leading expert on infectious diseases. Fauci, it turns out, is a closet restaurant fan who feels an obligation to help the industry weather the pandemic.
How Restaurants Can Serve Dinner Outside
During Winter. Dining in your own personal cabin may sound cozy, but will it be charming if sleet is raging when your server opens the door? The idea could get tested soon if a winning submission to Chicago’s first Winter Design Challenge is put into action. The contest was initiated as a problem-solver for restaurants to adapt their commercial properties to serve patrons and follow COVID-19 capacity restrictions as brisk, sometimes frigid temperatures make their way toward northern U.S. cities. Temporary restaurant closings caused by the pandemic have hit the restaurant industry particularly hard, and cities are adapting measures to help keep eateries in business. New York City is permanently allowing restaurants to offer outdoor dining year-round with heaters and enclosed tents.
How Many New Ways Will Restaurant Owners Get Squeezed?
During the pandemic Last Wednesday, as coronavirus cases continued to rise, New York governor Andrew Cuomo announced that the state government would impose a new 10 p.m. curfew on bars and restaurants. (In response, some asked, “Does the coronavirus come out at night?”) The curfew, he explained, would take effect on Friday, which meant owners had to cancel any previously booked reservations that would be in violation. Some operators told the Post their revenue dropped 30 percent over the weekend. This isn’t the first sudden rule change that’s cost owners more than a few dollars: Over the summer, New York Times critic Pete Wells wrote about restaurant owners who built outdoor setups in compliance with the city’s rules, only to have to shell out thousands more to meet new requirements that were posted roughly a week after outdoor dining returned. Still, more changes will need to be made by December, including mandatory “safety enhancements” to roadway barriers. Specifically, the city will require a “majority” of restaurants to install “plastic water-filled barriers” facing traffic lanes.
How 5 Mega Chains Are Designing Restaurants
For a digital future. From McDonald’s to Chipotle, brands are spending big on drive-thru, drive-in and pickup technology to grow revenue as the contactless experience becomes king. Drive-thru has long been the bread and butter for major U.S. restaurant chains, but the pandemic has accelerated diner engagement with digital channels — offering opportunities for QSRs to integrate loyalty programs and new technology with the drive-thru lane, as well as an opening for fast casual brands to create mobile-only drive-thrus. This boost in digital spending, along with widespread dining room restrictions, has also led to steep declines in on-premise traffic, forcing restaurants to rethink how to best use their real estate footprints to cater to the consumer of the future. From store technology that sorts diners into different traffic lanes to conveyor belts that deliver food to customers, check out the design changes McDonald’s, Taco Bell, Burger King, Chipotle and Shake Shack are betting on to sharpen their competitive edge.
Did You Know?
Europe keeps schools open, not restaurants. The U.S. has other ideas. Across much of Europe, even as coronavirus cases rise anew, governments are keeping classrooms open while forcing restaurants and bars to shut their doors. But in some American cities, officials have opted to keep students home even as dining rooms bustle with customers. The question reflects the complicated calculus that the pandemic has foisted onto cities all over the world, asking officials to balance livelihoods against lives, and to weigh the survival of today’s economy against the education of a generation of children. There are no simple trade-offs, and it is possible that both schools and indoor dining will close in the coming days or weeks.
Employee Tip
How much it costs to buy Thanksgiving dinner at Costco, Walmart and other grocery stores this year. For many Americans, Thanksgiving may look a little different this year, thanks to the ongoing Covid-19 pandemic. About 1 in 3 Americans are planning to have fewer guests at the meal this year, according to a recent survey commissioned by NCSolutions of over 2,000 adults. That could mean changing up the menu and potentially serving less food. To find out which retailers are offering the best deals on ingredients for Thanksgiving dinner this year, “CNBC Make It” shopped the lowest-priced ingredients available on November 6 at Northern New Jersey outposts of five of the most popular national grocery chains: Aldi, Costco, Trader Joe’s, Walmart and Whole Foods Market. It’s worth noting that these retailers may roll out specials and sales closer to Thanksgiving, so prices may fluctuate over the next few weeks.
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