Navigating COVID-19’s “Second Wave”: Adjusted Operations Critical Path for Independent Restaurants + Bars [Free Tool]
A comprehensive critical path for navigating adjusted restaurant or food business operations due to a spike in COVID-19.
In April 2020, we released our Reopening Critical Path for Independent Restaurants + Bars, which outlined tasks that operators should consider across all departments—finance, accounting, operations, HR, marketing, communications, technology, compliance, insurance, and facilities—to safely reopen doors for service.
As COVID-19 cases continue to spike around the U.S. and abroad, we understood it was important to take what we learned from the initial shutdown and address the next wave of regulations that operators will likely face this winter. Our Adjusted Operations Critical Path for Independent Restaurants + Bars is a free, comprehensive resource outlining those best practices. We hope it will provide independent restaurants and food businesses with a playbook for navigating new mandates, closures and adapted service models.
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To start, identify the following two things:
Identify cash on hand. This will inform key decisions about operations, labor, and revenue structures.
Determine how to create a safe environment for your team, guests, and vendors.
Everything else follows.
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Finance
Understanding the P+L will be key to reducing costs and overhead for your business. In particular, this is a time to identify fixed costs, versus those that can be reduced or suspended. When it comes to cost such as technology and rent, we recommend that operators consider renegotiating agreements or suspending unnecessary expenses.
Accounting
It is important to keep food + beverage COGS as reduced and consistent as possible. When thinking about adjusting your menu and identifying the percentage of COGS on the P+L:
(1) Rely on your POS data to identify key menu mix
(2) Reduce the menu mix to reduce labor and potential waste,
(3) Set up inventory benchmarks (including takeout and delivery packaging). This is a time to negotiate payment terms with vendors to help with cash flow for the business.
If you are interested in reviewing your current P+L , we are here to help. Shoot us a note at hello@oystersunday.com.
Operations
When it comes to operations, it is important to look at factors like your hours of operation, menu offerings, delivery and pickup offerings, protocols, and packaging. We also recommend looking at ordering pars and vendor terms.
Safety
The safety of your team, guests, and vendors is critical. Establishing—and communicating—your business’ COVID-19-specific standard operating procedures (SOPs) will be essential to maintaining both day-to-day operations and the trust of your community. Safety best practices should include temperature checks + reporting of symptoms, PPE, hygiene, social distancing and more, all of which should be clearly outlined for both your internal team and guests.
Human Resources
Your teams are the heartbeat of the hospitality industry. In addition to financial decisions, HR considerations should remain a top priority—from furlough, lay-off, and rehiring protocols to new post-COVID-19 requirements and policies.
Marketing + Communications
Clear, consistent communication has never been more critical. As you close, adapt or reopen your business, we have compiled a list of internal and external communications touchpoints that should be prioritized. This includes adjusted hours of operation, menu updates, and health and safety measures you’re taking to keep your team and your guests safe.
Technology
Technology has never been more important. Review your reservations platform (if applicable) and delivery / pickup apps to ensure that all of the information is fully up to date and that you are using these platforms to the best of their ability. You can also use this as an opportunity to try and renegotiate terms and conditions, if applicable.
Compliance + Insurance
Ensuring that your restaurant is compliant and protected by the right insurance policies has always been essential to the success of your business—and even more so now. Presumably you have already connected with your insurance company, and now is the time to think through risk management, department of health compliance, and how to properly train your employees on COVID-19 best practices.
Facilities
Each operator will find themselves in a unique situation—whether your restaurant is completely closed, open for outdoor dining, or solely offering pickup and delivery. As your facilities contracts require monthly payments, we recommend that you review these documents and pursue any avenues for temporarily reducing costs.
Disclaimer: The consolidated resources are here for your consideration. The information provided above is not legal advice. We recommend talking to your lawyer to ensure all state + federal compliance is maintained. If you do not have legal representation, we would be happy to connect you with legal counsel. We understand that circumstances are changing quickly and we are updating content as it is available.
