COVID-19: Navigating Restaurant Operations + Closures

Resources

Apr 10

Written By Elizabeth D Tilton

A list of resources and information across several departments to help restaurants navigate the uncertainty surrounding COVID-19.

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Service + Safety ⟶

Operations ⟶

Human Resources ⟶

Finance + Accounting ⟶

Additional Resources ⟶

Article: COVID-19: Navigating Restaurant Operations + Closures

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Service + Safety

COVID-19 Report
[This guide] is specifically written to help people in the F&B industry reduce the risk of their businesses accidentally spreading Coronavirus. The suggestions are low to no-cost and are generally good practice—they have been evaluated by epidemiologists, public health experts, biologists, and doctors. Full PDF available

CDC | Symptoms of COVID-19 [Here]
Clearly communicate and inform the team about symptoms of Coronavirus.

CDC Sanitation | [Here]
Abide by all hand washing and sanitation procedures published by the CDC.

Communications | [Contact Us]
Communicate clearly with your team and customers about your changing offerings and safety measures on all applicable communication networks: website, email listserv, social media, and on-premise signage. If you need help communicating with your team and / or guests, we’re here to help.

VIDEO | “The Coronavirus Explained + What You Should Know” by Kurzgesagt + Our World in Data

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Operations

Pickup + Delivery Logistics [Here]

Operations — Adjust menu offerings to pickup + delivery only ensure menu offerings are up-to-date online. This can include the following options:
- Offer larger catering options that can feed families over the course of several days.
- Offer partially assembled packages (ie. meal kits) with ingredients to cook at home. This allows your guests the flexibility to cook at home and gives the restaurant the ability to reduce labor while utilizing existing inventory.
- Avoid additional materials in the delivery package (i.e. utensils, napkins, etc.) to reduce any possibility of contamination.
Finance — This Delivery Economics Calculator from Figure Eight Logistics is a spreadsheet that calculates profit margin on menu items and delivery orders. Item margins are calculated by uploading food and paper costs, then pairing menu items with their respective packaging. You can create mock orders that include commission, delivery fees, and order packaging (i.e. delivery bags) to provide a full picture of profitability. [Here]
Technology — This White-Label Delivery Blueprint from Figure Eight Logistics is a good resource for NYC-based restaurants who are considering taking ownership of everything from online ordering to logistics. [Here]

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Pickup + Delivery Apps

Over the last few weeks, many tech companies have pivoted to offer pickup and delivery solutions on their platform. Regardless of which is best for your business, communicating which pickup or delivery apps you’re using on your website and social will help with customers find your offerings:

Bento Ordering by BentoBox — You can customize the online ordering experience with your restaurant’s branding and it gives you ownership of customer data as well as access to marketing collateral, order management and additional features. This service is available to both restaurants who do and do not use BentoBox as their website host. BentoBox is offering discounted COVID-19 pricing for Bento Ordering and is waiving setup fees. Upon sign up, Bento Ordering can be up and running in less than 4 days. [Here]
TockToGo — With Tock, you can now offer meals for delivery or pickup, just like a prepaid experience. It's easy, fast, and safe for your staff and guests alike. This service is available to both restaurants who do and do not use Tock for reservations. Tock is currently offering preferred rates but the exact rate is TBC. (4/1) [Here]
Bbot + SevenRooms — They have come together to launch Direct Delivery: a direct digital ordering solution for delivery and pick-up orders to help restaurants boost revenue and increase loyalty. They are currently offering 90 days free upon sign up. [Here]
GoParrot —They offer delivery integration with fixed flat rate fees for third party delivery. You have the ability to choose how you want to cover delivery costs. The customer can pay, you can pay or you can split the cost of the fee. [Here]
ChowNow — ChowNow Direct allows customers to place orders directly from your website, social media profiles, and custom-built food ordering apps — commission-free. [Here]

Legacy Delivery Apps — Many legacy delivery apps have offered waived or deferred payments but there has been criticism from all sides that these legacy delivery apps have been an enormous burden on the industry for years. This is recapped well in a Food & Wine article by Khushbu Shah [Here] (4/12)

GrubHub — has deferred commission fees on orders from independent restaurants up to $100M (updated 3/16). [Here] Please note this dissenting opinion from Forbes about their offering (3/20) [Here]
UberEats — has waived delivery fees to the customer. As of (3/17), restaurants are still responsible for commission fees on orders, which may adjust. [Here]

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Online Ordering

Contact your POS provider to see if they’re able to activate online ordering with pre-approved vendors. This allows you to capture sales without exchanging payment in person.

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Contract Cancelation + Force Majeure [Here]
Many businesses are wondering whether they can cancel contracts due to COVID-19. Others are trying to determine how to proceed with contracts going forward. These questions come from parties to both B2B and B2C agreements. Here are some FAQs about force majeure clauses from Hilfer Law.

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Gift Cards + Merchandise Encourage guests to purchase gift cards (Dining Bonds to use at a later date) + merchandise, if available. Depending on your POS and website providers, these add-on services can easily be implemented. You can also offer to process payment via a credit card authorization form [Example Here]

BentoBox Gift Cards — BentoBox Gift Card allows you to easily manage transaction and customer data with a simple checkout process. This service is available to both restaurants who do and do not use BentoBox as their website host. BentoBox is offering discounted COVID-19 pricing BentoBox Gift Cards and is waiving setup fees. Upon sign up, BentoBox Gift Cards can go live in less than 24 hours. [Here]

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Tax Implications | Gift Cards+ GoFundMe Campaigns for Small Businesses
Below you will find a review of the tax implications on small business when collecting gift card sales or GoFundMe campaigns. Although a way to receive cash for the company, it is important to understand the taxes and allocation of funds. [Here]

Note — If funds are donated in partnership with or through a 501(c)3, donors receive receipts from PayPal Giving Fund via GoFundMe, which may allow them to claim tax benefits. Please consult your CPA for further details.

Download PDF

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Human Resources

Our teams are the heartbeat of the industry. But we understand that safeguarding the future of your business will require difficult decisions to be made. The goal is to balance your team's immediate needs, while ensuring they will have a job and a community to return to in the months to come. Below are some potential options and resources.

Mandatory Unpaid Vacation Leave
Key paid sick leave reminders provided by NYC Hospitality Alliance + Fox Rothschild LLP [Here]

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Adjusted Pay Rates

In these unprecedented times, adjusting pay rates can help alleviate the pressure of cash and save jobs. In order to adjust pay rates, below are a few resources and necessary steps:

Notice of Pay Rate [NYS Here]
Employers must fill out proper paperwork with the new salary or hourly rate
Reduce employees’ days or hours
Adjust from salary to hourly payments
If hourly, the employee will need to be added to the schedule system to properly clock in and clock out. If the employee works over 40 hours per week, they must be paid overtime (unlike previously when they were salaried).

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Unemployment Furlough [Here] + [Here]

A work furlough equates to a temporary lay off by an employer to cut payroll costs. The furlough generally has a predetermined beginning and end date. Most furloughs end after a few weeks. During the furlough period, the employee does not receive pay. What many workers do not know is that a work furlough generally qualifies them for unemployment benefits.
When an employer announces a work furlough, employees should contact a state unemployment office to file an unemployment claim. In most cases, workers do not receive any unemployment benefits during the first week that they are unemployed. They must endure a one-week waiting period”
- Note: NY waved the 7-Day waiting period for Unemployment Insurance benefits for people who are out of work due to Coronavirus (COVID-19) closures or quarantines.
Key differences between a furlough and a layoff:
- Furloughed employees have an expectation that they will return to work. Typically, an employer will give furloughed employees either a specific date or a specific condition for resuming duties.
- Furloughed employees typically retain their benefits. Most notably, employees usually retain access to any health and life insurance during the furlough.

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Employee Separation Resources

New York [Here] + Louisiana [Here]

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Family and Medical Leave Act (FMLA) + Unemployment

With the CARES Act, the stimulus package has temporarily extending unemployment benefits to those who may not be eligible at the state level, so long as their unemployment is connected to the coronavirus outbreak. Important note is that Furloughed employees qualify, as do part-time workers, freelancers, independent contractors, and the self-employed. Congress is extending a $600 weekly check to all individuals eligible for unemployment insurance — now a significantly larger number given the coronavirus stimulus package’s expansion of unemployment coverage. The $600 weekly payout lasts through July 31. A breakdown of eligibility can be seen [Here].

U.S. Department of Labor | Q&A on Public Health Emergencies + FMLA | [Here]
U.S. Department of Labor | FMLA Forms [Here]
National Restaurant Association | Emergency Paid Leave Mandates with Employer Tax Credits (Brief) | [Here]
New York State Unemployment Assistance [Here]
Note: NYS is waiving the 7-Day waiting period for Unemployment Insurance benefits for people who are out of work due to Coronavirus (COVID-19) closures or quarantines.
Empowered Hospitality | Navigating Benefits during Coronavirus [Here]

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Finance + Accounting

Build a 12-Week Budget

Reduce the fixed bottom line where possible. This will give you a view into cash flow restrictions —particularly labor and food costs. Here are a few recommended key steps:

Contact your CPA to think through cash flow and where there can be forgiveness. The tax laws are changing in real-time, including employee tax and sales tax on the federal level, with states likely to follow. To stay abreast of changes, please visit the IRS website. [Here]
Mandatory Payments | Employee payroll, payroll tax + state sales tax
Extended Payments | Review the terms and conditions to best understand when late charges and penalties kick in for payments such as rent + credit card payments.

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Reduce Ongoing Fixed Costs

Identify and look for alternative solutions to reduce ongoing fixed costs to enable the company to maintain cash where possible. Below are a few examples of temporary reductions of fixed costs:

Rent abatement (see below)
Loan forgiveness
Renegotiate vendor agreements with extended payment terms
Monthly software subscription reduction | Contact your service providers to see if there are opportunities for alternative terms or temporary cost reductions for operational software including: POS, inventory management, reservation system.
- Resy is providing 100% relief on all fees and billing for at least 30 days.
- OpenTable is waiving subscription fees for restaurants that are closed through (4/30).

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Rent Abatement

Contact your landlord. It is recommended to pro-actively reach out to your landlord to confirm they are not going to claim a default in payment for [TBD] amount of time. The mere act of communicating is generating much-needed goodwill. When you contact your landlord:

Acknowledge the hardship, let them know what you've done with your business, whether that's a full closure or adjusted service to take-out only.
Acknowledge that this is unprecedented and that you want to work together to find a solution.
Get a confirmation that they are willing to agree not to send notice of default and look into some combination of abatements/deferrals and say you'll be ready to document that in an amendment in the coming weeks.
New York’s coronavirus eviction moratorium, explained [Here]

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Information on Business Interruption Insurance | [Here]

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Emergency Mortgage Forbearance [Here]
Homeowners who have lost income or their jobs because of the coronavirus outbreak could receive some relief and should be eligible to have their mortgage payments reduced or suspended for up to 12 months. (3/20)

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Additional Resources

CDC | COVID-19 Fact Sheet [Here]

CDC | Interim Guidance for Businesses and Employers [Here]

Cherry Bombe [Here]
Resources for F+B businesses around the US.

DIG [Here]
DIG is sharing internal operating policies and procedures.

E.B. Cohen [Here]
COVID-19 Information Center

Food + Tech Connect [Here]
A list of Food Industry COVID-19 support resources.

Food Hub NYC [Here]
To get help/resources (for families, students, and restaurants/restaurant workers) and to offer help/resources (food donations, volunteers, monetary donations).

Fisher Phillips | FAQs for Employers [Here]
This report includes: Workplace Safety Issues, Healthcare / HIPPA Issues, Benefits / Group Health Plan Administration, Wage + Hour Issues, Employee Leave / ADA, Labor Relations, Workers’ Compensation.

Hlebraun Levy | HR Legal Information about COVID-19 [Here]
Includes answers to the following questions about cutting payments, providing notice to staff before making payment change, the difference between furlough, layoff, or termination, + much more.

Independent Restaurant Coalition (IRC)

COVID-19 Guide for Small Businesses [Here]
What to do now that the stimulus is the law [Here]
COVID-19 Recursos para Comunidades Indocumentadas [Here]

Johns Hopkins | Coronavirus Resource Center [Here]

James Beard Foundation | Daily Webinars [Here]
This spring, JBF is hosting an Industry Support learning series. Every day at 2:00 P.M., they will host 50-minute webinars that will be interactive, feature a clear, straightforward presentation, as well as a 15-minute Q&A.

James Beard Foundation | Resources [Here]
How the restaurant industry is responding to COVID-19, plus resources for diners, restauranteurs, and chefs.

NOLA Ready [Here]

NYC Restaurants + Delivery Offerings [Here]

NYC Hospitality Alliance [Here]

PUNCH [Here]
A list of stories and resources that can make a difference, updated daily.

Restaurant Workers Community Foundation (RWCF) [Here]
Resources for restaurants and workers coping with the COVID-19 emergency. This includes updates on closures/impact on the industry; health, healthcare, and prevention; what businesses need to know; unemployment information; immigrant-specific concerns and resources; financial assistance; news items on restaurants and public health; and data and statistics relevant to the crisis.

Oyster Sunday | List of COVID-19 Webinar Resources [Here]
Upcoming and past webinars – updated regularly

US Department of Labor [Here]

Women in Hospitality United (WiHU)

[Survey #2] Participation Needed — WiHU is conducting a survey on how to create the best non-monetary support and resources for front line staff who've been terminated because of COVID-19. Any and all responses are greatly appreciated [Survey Here]
[Survey #1] Immediate response to COVID-19 ideas and resources results [Results Here]

Disclaimer: The consolidated resources are here for your consideration. The information provide 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.

Elizabeth D Tilton https://www.oystersunday.com/