With a sharp increase in the number of Covid cases, hospitalizations and deaths nationwide and Congressional action on a new economic stimulus package stalled, the National Restaurant Association described the industry being in “free fall” with 10,000 establishments closing in three months.
It called on Congress to promptly pass the $908 billion compromise economic stimulus package that appeared to have solid bipartisan support.
Locally, there”™s been growing support in Westchester and Fairfield for restaurateurs, including promotional efforts to help keep them afloat.
One effort to help keep restaurants alive is being organized by the White Plains Business Improvement District (BID). The first Downtown White Plains Restaurant Month promotion is scheduled to take place from Jan. 2-31. The BID is providing a web page, flyers and other promotional efforts to induce people to take advantage of special fixed price lunch and dinner specials.
“The White Plains BID is doing all we can to help our restaurants during this ongoing pandemic, particularly as they head into the most challenging time of the year,” Brittany Brandwein, executive director of the BID told the Business Journal.
“Another round of federal relief needs to be passed as soon as possible. Every day counts and any support is undoubtedly necessary for thousands of restaurants throughout the country.”
Restaurant month in White Plains follows another BID promotion, the Covid-19 Assistance Program, known as BIDCAP. Designed to help support the survival of small businesses in the city”™s downtown, the program encourages shoppers to buy gift cards from local merchants, including restaurants. BIDCAP lets consumers to buy the gift cards valued at up to $200 at half price at participating businesses. The BID underwrites the balance so the business doesn”™t lose any income.
“Restaurants are appreciative that we have their backs,” Brandwein said. “The BID worked with the city of White Plains to extend the outdoor dining season for sidewalk cafes, basically making it an all-year-around option. We had some really nice days in November and even early December, which helped get the restaurants some additional sales.”
Brandwein said that even though sales are down, the BID members are determined to make it through the winter.
“Since the pandemic has lasted so long at this point it has now become a burden on property owners as well but from what I understand most landlords have worked well with their tenants because nobody wants to see vacancies,” Brandwein said.
“It really has been a beautiful response to watch from a business improvement perspective, to see landlords and tenants working together to try and succeed. With that being said, it”™s getting harder and harder for small property owners.”
Sara Brody, executive director of the Yonkers Downtown Waterfront BID, told the Business Journal that her members have been trying to work within the state”™s Covid restrictions by creating new takeout menus and encouraging people to dine at earlier times.
“I started with the BID in July and I have been in constant contact with restaurants and other businesses. They”™re sharing their successes and some of their challenges,” Brody said. “We run a very robust social media program out of the BID and we”™re constantly looking to our businesses to provide content for us to promote.”
She said that one of the positive things that has come out of the pandemic is an increase in communication among business, residents and the BID.
“None of the restaurants have thrown their hands up. They”™re very focused on being able to continue their businesses, to be able to promote what they can do for the community and even beyond Yonkers,” Brody said.
“We as the BID are looking into 2021 for various ways that we can help them. Restaurant week is coming up and we are looking to do virtual events this year.”
Brody explained that one promotion being considered is a series of videos for internet streaming in which chefs in the city would show how they prepare dishes to both educate viewers and entice them to stop by the restaurants to try them. She said the BID wants to encourage people to purchase gift cards for their own future use and to give as gifts during the holidays.
“The city has been amazing. Mayor Spano, in particular, has been attentive,” Brody said. “He wants to work to resolve any of the challenges we are having. There has been a very large initiative to continue the movement downtown Yonkers had been having before Covid.”
ӢӢӢ Survey: Dark days loom ӢӢӢ
As evidence of the need for a quick package to be followed in 2021 by additional relief, the National Restaurant Association sent to Congressional leaders results of a survey conducted by its Research Group during the period Nov. 17 through Nov. 30. The survey reached out to 6,000 restaurant operators and 250 supply chain businesses.
The survey showed 54% of New York restaurant owners and 47% of Connecticut owners said it is unlikely their restaurants will still be in business six months from now if there are no additional relief packages from the federal government.
Nationally, 75% of the operators expected their sales to decrease from current levels during the next three months. One reason for the deteriorating business conditions was the end of the outdoor dining season in many parts of the country.
Eighty-six percent of operators said their restaurant”™s profit margin was lower than it was prior to the pandemic. Nationally, 37% of operators said it is unlikely their restaurant will still be in business six months from now, if there are no additional relief packages from the federal government.
Eighty-five percent of supply chain businesses reported lower revenues in 2020 compared with 2019. On average, revenues of supply chain business were down 30% in 2020. And 70% of restaurant supply chain businesses reported laying off or furloughing employees during the coronavirus pandemic.
In Connecticut, 89% of the surveyed restaurant operators said their total dollar sales volume in October was lower than it was in October 2019. Overall, sales were down 37% on average. Ninety-two percent of Connecticut operators expected their sales to decrease from current levels during the next three months and 76% expected their staffing levels to decline during the next three months.
In New York, 85% of restaurant operators said their total dollar sales volume in October was lower than it was in October 2019. Overall, sales were down 39% on average. Eighty-eight percent of New York operators expected their sales to decrease from current levels during the next three months and the same percentage expected their staffing levels to decline during the next three months.
