Your Mid-Week Memo
Stay up to date on the latest happenings in the restaurant industry
In this edition of our round-up of the hottest topics in the food business, we look at Restaurants Act’s (the grassroots home for the restaurant industry) initiative to replenish the Restaurant Revitalization Fund, and Mike Whatley of the Association’s discourse regarding the new laws keep alcohol-to-go on the menu after the pandemic on Marketplace. Also on the menu are insights from Joanna Fantozzi of Nation’s Restaurant News on New York’s $800 million small business recovery grant program, and Joe Guszkowski of Restaurant Business Online on trends in restaurant technology.
Replenish the RRF
The organisation serves as the industry’s grassroots and resource center, and provides a comprehensive look at information and resources at the federal, state, and local levels. They have now launched a campaign seeking ‘at least an additional $50 billion just to fund the applications submitted before the application portal was closed’ — on the advise of the Small Business Administration (SBA).
Senator Kyrsten Sinema (D-AZ), Senator Roger Wicker (R-MS), Representative Earl Blumenauer (D-OR), and Representative Brian Fitzpatrick (R-PA) have introduced the RRF Replenishment Act, which directs $60 billion in funding to the SBA, allowing them to complete the mission and provide sorely needed recovery dollars for the restaurant industry.
Many here in Washington think that the return to indoor dining means that the restaurants will be fully back to normal within a few months. The truth is that this industry is incredibly vulnerable and faces a long path to recovery. We need this bill.
Read their full statement and sign on to urge elected officials to take action, here.
Alcohol-to-go is here to stay
In a conversation with Marketplace, the National Restaurant Association’s Vice President of State & Local Affairs, Mike Whatley gave his opinion on alcohol-to-go becoming a permanent feature across the country.
…even though capacity restrictions have mostly lifted, takeout orders make up 20% of the restaurant group’s sales, compared to 2% pre-pandemic.
“Which is why,” said Mike Whatley at the National Restaurant Association, “it’s really important that restaurants be allowed to continue alcoholic beverages to go.”
He also said the takeout trend is here to stay, and restaurants cannot afford to lose high-margin alcohol profits that have gone with those to-go meals this past year.
Since the pandemic started, permanent laws have passed in 13 states, with bills active in at least six others. The rules vary. Some require food purchases, others impose drink limits or mandate tamper-proof containers. So don’t expect the more relaxed laws to turn Main Streets into Bourbon Street, the New Orleans icon famous for allowing people to carry open cups of adult beverages.
Listen to the whole conversation, here.
NYC’s $800 million Small Business Recovery Grant Program
New York State recently announced the launch of an $800 million small business recovery grant program. This will offer small businesses and for-profit art & cultural institutions the opportunity to receive debt-free grants between $5,000-$50,000 for COVID-related expenses from March 1, 2020 and April 1, 2021 (depending on the business’ annual gross receipts).
Joanna Fantozzi’s brilliant article on the subject for Nation’s Restaurant News not only includes the statement made by Governor Cuomo on the subject, but also goes on to detail the eligibility and the application process. Some key points from this include:
- Small businesses are defined as having fewer than 100 employees
- Applicants must show a 25% year-over-year revenue loss
- Grant awards are calculated based on gross receipts
- Businesses that already received a Restaurant Revitalization Fund grant are ineligible to apply
Read the full article, here.
Joe Guszkowski’s Tech Roundup
For Restaurant Business’ weekly roundup of the latest in restaurant technology, the Senior Editor focused on the fact that there seems to be no let up in the emergence and relative success of virtual brands.
“The wind-down of the pandemic and the return of customers to dining rooms has apparently done little to slow interest in these online-only, delivery-focused concepts. Since June 1, at least four restaurant companies have announced new spinoffs…”, he begins, before going on to expound the benefits provided to these brands by an organisation called Rich Products Corp. (and their collaboration with Nextbite).
Other standout news from his article includes a note on DoorDash’s imminent launch in Japan and the rebranding of Waitr (which is all set to include new segments such as Cannabis delivery and payments), among others.
Read the whole article, here.
Please reach out to aman@dashin.in for any feedback or clarifications regarding the content of this article.
