The Reopening of Las Vegas
Will mark a new era for Sin City. On May 18, a TV ad announced the arrival of a new Las Vegas. In it, a couple kisses at a bar. They hike in the desert. At night, illuminated by dazzling lights, they stroll in front of the Strip’s Bellagio fountains. Absent are the pool parties, glamorous crowds huddled over craps tables, and roaring nightlife the destination was known for prior to its mid-March shuttering. “Things will be a little different,” says a voiceover, “A new Vegas for a new reality.” This new reality will be revealed on June 4, when Nevada begins easing lockdown restrictions and the city, slowly, reopens. How much sin will remain in a city that now requires face masks, crowd control, and six feet of social distance, according to guidelines announced last week, is uncertain—but Fletch Brunelle, the vice president of marketing for the Las Vegas Convention and Tourism Bureau (LVCTB), insists the essence of Vegas will be unchanged. “We will still be about adult freedom,” Brunelle says. “But we want guests to get their experience and stay safe at the same time.”.
Why People are Flouting Life-Saving Social Distancing Precautions
People blatantly defying social distancing and face-covering rules. With more than 100,000 Americans dead and rising from the novel coronavirus, health experts and other leaders have been pleading for people to adhere to their strict guidelines to keep people safe. But all too recently, these and other examples, large and small, have emerged of people blatantly defying social distancing and face-covering rules. Psychology experts said they haven’t been surprised by this type of behavior, since it’s been a long-standing issue with public health: the ability for people to assess risk. Rajita Sinha, a professor of psychiatry at Yale University and the founding director of the Yale Stress Center, said the uncertainty about when the pandemic will end, access to information and one’s underlying beliefs can influence someone to flout precautions.
Florida Sports Bar’s COVID-19 Insurance Claim Should Proceed
But America sure seems over it. In the short space of two months, thousands of corporate policyholders across the country have gone from pursuing normal, prosperous business operations to substantially reduced or suspended business activity in response to state and local quarantine orders to, now, conflicts with insurance carriers over coverage for extensive business interruption losses. Dozens of cases have been filed in venues across the country by corporate insureds seeking to recover the same thing — millions of dollars in lost revenue and extra expense incurred as the current public health crisis has denied businesses their employees, essential supplies and consumers. In one pending case, Prime Time Sports Grill Inc. v. Certain Underwriters at Lloyd’s of London, the insurer recently moved to dismiss the policyholder’s claim for business interruption loss in litigation pending in the U.S. District Court for the Middle District of Florida. Underwriters’ dismissal brief argues primarily against the policyholder’s allegations that its restaurant/bar sustained physical loss of or damage to insured property. Here is an open response to Underwriters’ flagship argument denying the existence of physical loss or damage to Prime Time’s covered property.
Businesses Rethink How They Make Money
Forced to adapt. Many business owners are changing the way they make money as they attempt to recoup revenue lost to the coronavirus outbreak. The changes can look subtle; for example, when owners of clothing stores decide to beef up their internet business. But often such adjustments involve an entire rethinking of the business model — the blueprint that encompasses the key aspects of running a company — with significant changes to staffing, technology and inventory. For many companies, it’s a matter of survival, but for others, the changes have been a silver lining amidst the crisis.
Franchisees of Iconic American Chains are ‘Hemorrhaging’ Sales
As operators of IHOP, Pizza Hut, and more file for bankruptcy. The franchisees that run locations of some of America’s most iconic chains are facing the same financial struggles as the rest of the industry. Franchisees for Pizza Hut, IHOP, and Subway have already filed for bankruptcy. McDonald’s internally warned franchisees that they may have to downsize or sell locations. As restaurants across the US are permanently shuttering due to the coronavirus pandemic, experts say not every franchisee is going to be able to stay in business. Struggling owner-operators will be forced to try to sell their restaurants back to the corporate office or other franchisees, or file for bankruptcy.
Did You Know?
Phil Murphy borrows bad ideas from the governors who got us into this mess. When you’re living on borrowed time, more borrowing is not the answer. That’s the situation New Jersey finds itself in. Even before the Covid-19 crisis our state was at the top of the lists for unfunded liabilities in bonding and pensions. Now revenues from the major taxes have plummeted. There are many approaches to filling the budget hole, but Gov. Phil Murphy has seized on the most discredited one: borrowing our way out of it.
Employee Tip
The unluckiest generation in U.S. history. After accounting for the present crisis, the average millennial has experienced slower economic growth since entering the workforce than any other generation in U.S. history. Millennials will bear these economic scars over the rest of their lives, in the form of lower earnings, lower wealth and delayed milestones, such as homeownership.
Bielat Santore & Company – Restaurant Industry Daily Alerts
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Thank you and remember all of the “Restaurant Industry Alerts” and “Thursday Restaurant Rap” interviews can be found at www.njrestaurantsforsale.com/news/. We intend to continue to keep you informed as we all look for an end to this crisis.
How to market your restaurant for sale during the coronavirus pandemic. Of course, it will be challenging to market and sell businesses that have temporarily been shuttered during the pandemic, because valuations are based on historical financial data. However, whether you choose to reopen your business or not, owners can still position them for sale. So, what should you do if you want to sell in the next 6 – 12 months? Contact a good business broker that specializes in the sale of hospitality real estate and businesses. Bielat Santore & Company, Allenhurst, NJ has been brokering such sales for over 40 years and will be able to help you come up with flexible deal structures and capital sources to make a sale possible; call for a free consultation – 732.531.4200.
