Governor Dan Patrick might fight me on this, but here it is: Loss of life is much more important than loss of revenues. What if tracing leads back to a particular restaurant as ground zero for one or more sick patrons? What happens when someone catches this virus and pays the ultimate price? Texas Lt. A Branding Nightmare : What happens when your favorite restaurant becomes the kind of hotspot that everybody wants to avoid? If a patron - or employee - gets sick with COVID-19, it could be insurmountable for the business.As expected, “being afraid for your life, safety and well-being” is not an acceptable reason for claiming unemployment. The state provides guidelines on certain health reasons for not returning to the job. In a recent tweet, Texas Governor Greg Abbott announced new guidance for the Texas Workforce Commission, the state’s governing body for worker’s claims. That’s not a good recipe for owners - or their employees. If the business has some form of insurance, that claim will be denied - because the business isn’t experiencing an interruption, now that sanctions are lifted. Landlords who might have considered reduced rents or some form of forbearance will have no reason to ease up on overhead. Tightening the Noose: as I mentioned in this Forbes article, small business owners will see little relief once the option to open is open for restaurants.Is that a sustainable model for workers, or business owners? Meanwhile, 100% of the rent, utilities and other expenses are due and payable - in an industry that’s already tight on margins. Or the same amount of shifts, but only 25% of tips.
For servers, 25% capacity might mean 75% less shifts. Find related and similar companies as well as employees. Does that mean additional hiring? The math doesn’t make sense revenues and profits are both taking a massive hit. View CRUSH Industry Reports () location, revenue, industry and description. Welcoming patrons inside requires additional staff - and the new normal requires new safety measures. Partial Capacity Crushes Profitability: Working with a skeleton crew (what’s been working so far for curbside service) isn’t the profit model when bar backs and servers return to the front lines.
CRUSH THE INDUSTRY FULL
And who will police the hungry restaurant owners if they decide that if 25% capacity is good, 50% is better - and full capacity is really what’s best? Seems most owners are ready to abide by the restrictions - but what about those who don’t? Would owners be fined for over-capacity, or would the restaurant’s guests be the only ones who pay a frightening penalty? Clearing tables just got riskier: what if guests just won’t leave, so that capacity restrictions can be maintained? How does that work, exactly? How about in between courses, while waiting for drinks or appetizers: will patrons be asked or expected to keep their masks on? Does it seem like a stretch to expect that those who decide to frequent dining rooms during the coronavirus might be a little more demanding about their rights, freedoms and choices? Perhaps.
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