For as long as we each can remember, Mother’s Day has meant dinner at her favorite restaurant. Flowers in front of her and the menu in hand. Over the years we got smarter and booked Mother’s Day dinner in advance to avoid the Sunday rush. This Sunday, Mother’s day will be different. The world as we know it has changed. Here in Colorado, like many other states, the Governor has not set a date for the full reopening of our favorite eateries and restaurants.
The effects of this Pandemic has been surreal. In April, 91% of Colorado restaurant indicated they had laid off or furloughed their employees due to COVID-19. An estimated loss of a staggering $975 million in April sales. According to the Colorado Restaurant Association (CRA), there are 12,500 restaurants and bars in Colorado and of those 75% are independently owned and operated. These restaurants provide 294,000 jobs and generate $14.5 billion in annual sales. In other words, our restaurants are a vital part of our economy. Consequently, this pandemic shutdown has led 53% of restaurants to temporarily close and for some this could lead to a permanent closure. A harsh reminder that this lockdown is literally taking their livelihood away.
The good news is the federal stimulus plan, called the paycheck protection program (PPP), is helping. Yet, according to CRA, only 15% of those restaurants who applied in the first round received funding. Hopefully, the numbers will be much better in the second round. Needless to say, the restaurant industry has changed forever. Business owners will have to continue to adjust and be innovative. At the end of the day, it boils down to customer demand. Until customers are ready to come back in meaningful numbers, the drought will continue.
Some industry experts predict a slow recovery that could take years before realizing the numbers pre-pandemic. Most importantly, customers need to feel that it is safe to return. An increase in consumer confidence will lead the way to the industry’s recovery. Delivery and curbside pick-up from our restaurants will likely continue to increase and serve as lifeblood for many establishments trying to survive. The Colorado Department of Public Health and Environment indicated that it can be safer for high risk populations to order out food for pick-up or delivery from a local restaurant than going to a grocery store. This is due to the fact that the restaurant industry is highly regulated in health and safety and there’s less touch points than at a grocery store.
We believe the best way to help our favorite eateries and pubs in addition to ordering from them regularly is to make sure the PPP loans are getting to them, significantly ramp up daily COVID-19 testing, as well as implementing statewide contact tracing, and to extend the orders allowing alcohol and raw food delivery through at least the end of 2020. Once Restaurants have the greenlight to open their dine-in experiences, an idea might be to use parking lots as outdoor dining areas with ample room between guests. For instance, the city of Tampa is relaxing zoning ordinances to give restaurants more flexibility for outdoor seating.
As we celebrate Mother’s Day this Sunday, we must continue to practice social distancing, wear masks, and wash our hands. Stay home if you don’t feel well and follow the COVID-19 best practices if you show symptoms. For those of us that cannot afford to risk our mom’s health, send her flowers with a meal from her favorite restaurant. For the rest of us that are fortunate enough to be with mom, order in. Call it a two for one, celebrating Mother’s Day and supporting our local restaurants.
— Ryan Frazier is the Managing Principal of Frazier Global and Host of 9News “The Business Brief” and Kenny Yoo is a Senior Analyst for Frazier Global.