Road to Recovery
Key takeaways from Tom Bené, President and CEO of the National Restaurant Association's, recent address on industry recovery in 2021
In the recent Fall board meeting of the National Restaurant Association, Tom Bené, President and CEO of the Association and CEO of the National Restaurant Association Educational Foundation, detailed plans and programs in the pipeline to assist restaurants devastated by Covid-19.
For a sector that has seen more than $185 billion in lost sales over the last seven months, and a peak industry unemployment level in excess of 8 million the economic fallout of this pandemic has been catastrophic. There had seemed to be a glimmer of the proverbial ‘light at the end of the tunnel’ when restaurants began to reopen at regulated capacity, and with the establishment of outdoor dining in metropolis’ like New York City, but as cases of the virus continue to spike to record highs, the forecast has once again taken a bleak overview.
“A recent survey found that 40% of operators are unlikely to be in business six months from now if there is not additional support,” Bené is quoted to have stated, adding that the Association has been polling restaurant owners almost monthly since March. Their latest research paints a similar, stark picture.
Apart from reiterating the industry-wide call for the federal government to consider more action to supplement the initially conceived Paycheck Protection Program expeditiously after the election, the President and CEO did forewarn that shortfall in the holiday season (usually the most lucrative time of year) is set to challenge the positive ambience generated by the fact that 75% of full-service restaurants across the country had adapted to facilitate outdoor dining.
He also went on to detail changes that would very possibly remain in effect even after a vaccine is widely available. This encompassed an accelerated use of technology, variable pricing strategies and the substitution of physical menus with QR code-based alternatives. His overarching message was one that we have echoed time and again—we are an industry that innovates, adapts and most importantly, overcomes. And we must continue to do so, because some of these changes are genuinely cost-effective and will be beneficial in the long term. Our passion, creativity and willingness to adjust has not, and should not waver.
It’s not all so bleak though. While the past few days have been dominated by headlines that highlight a potential new wave of restrictions and subsequent challenges, powerhouses like US Foods remain optimistic that the industry will ultimately recover to pre-Covid levels, based on their current data. Another promising sign is the increasing scrutiny of whether virus transmission via eateries is as ubiquitous as it has been made out to be. “We have started to see an acknowledgement by some of the public health officials that COVID is not necessary spread in restaurants,” Bené noted. “In fact, they’ve talked a lot more about family gatherings and other types of activities that are having a bigger impact on the increased transmission of cases.”
“We’ve done an amazing job as an industry, trying to create the environment where consumers and guests can feel safe coming into a restaurant. But we need to continue to tell that story,” Bené fittingly concluded.
Take a look at a snapshot of the Association’s recovery blueprint below:
To help the industry meet the challenges, Bené detailed how the Association is working at all levels to help the industry weather the COVID-19 storm. Three primary objectives include:
Policy engagement. The Government Affairs team continually advocates for critical changes to expand financial assistance, such as the Paycheck Protection Program Flexibility Act, which was signed into law in June. The team also developed a “Blueprint for Restaurant Revival” that asks Congress to make significant legislative changes that would support restaurants of every size and operation model across the country.
Restaurant Revival campaign. This initiative, funded and developed in partnership with several of the Association’s allied members, seeks to educate consumers about the steps restaurants are taking to protect employees and guests from exposure to coronavirus and to ensure them it’s safe to dine out.
ServSafe Dining Commitment. Part of the Restaurant Revival, the commitment is a pledge participating restaurants take stating they are:
Following the Association’s safe reopening guidance
Adhering to local public health requirements
Employing ServSafe-certified staff members
—Excerpt from https://restaurant.org/articles/news/association-ceo-talks-industry-recovery-in-2021
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