U.S. restaurant sales were forecast to hit $900 billion in 2020. With the impact of the Coronavirus coming into focus, the National Restaurant Association now expects industry losses in aggregate to total $225 billion. An article in the WSJ cites some of the steps restaurant owners are taking to avoid a permanent shutdown.
- Taking pay cuts and asking employees that remain to do the same.
- Substantially reducing employee count.
- Asking banks for relief. Per the article, banks can be understanding: “‘We are taking steps proactively so that we don’t allow a temporary problem for our clients to turn into a permanent one,’ said Century Bank’s Chief Executive Richard Drews.”
- Asking landlords for relief.
- Cancelling all orders and contracts that are not essential. Examples included pausing contracts with vendors like OpenTable Inc. or cancelling orders on items like linens.
- Immediately looking to improve online presence and the ability to communicate with customers digitally. Using this strategy to increase pick-up orders and delivery.
- For those in dire situations, deciding how to prioritize payments due.