PRLA Restaurant & Lodging Matters Summer 2020

Summer 2020  •  PENNSYLVANIA RESTAURANT & LODGING matters  • 11 of COVID-19 could linger in the air for hours. If that possibility is proven true, restaurants could face a huge new challenge in their recovery. Dining rooms might not be safe unless sophisticated air purification systems are installed. But even then, consumers’ trust in the safety of dining out could be badly shaken. It’s an “if,” but who would have thought a year ago that the industry would be shut down by a germ? 5 Are there any winners in this situation? Let’s leave out the pizza and wings delivery concepts that have seen sales soar during the pandemic, since a mention will only re- infuriate all the concepts that are struggling to squeak by. But there are some other businesses who have indeed found sweetened business opportunities during the pandemic. Among the beneficiaries: Ghost kitchens and the virtual-restaurant phenomenon, in part because they provide a way for more concepts to vie for a portion of off-premise pizza and wing sales. Since the crisis began, Applebee’s, Chili’s, Maggiano’s, Smokey Bones, Fat Burger, Buca di Beppo parent Earl Enterprises and a host of other established operations have entered the wings business through the launch of a virtual concept. Some of those have also spun off taco and pizza brands that exist only in the apps of third- party services. Not surprisingly, the other big winners have been the companies that supply restaurants with anti-viral safeguards, including hand sanitizers, face masks and of course plexiglass. A Midwestern woodworking firm said it was given an order for 12,000 partitions by Texas Roadhouse. Darden Restaurants said it spent $5 million during its most recent quarter on personal protective equipment and sanitation supplies. El Arroyo, an independent restaurant in Texas, has seen its operating expenses jump 10% to 20% since reopening its dining room, though that figure also includes the cost of devoting one staff member per shift to sanitizing tables and other surfaces, according to its president, Ellis Winstanely. 6 What will happen if more states start re-shutting dining rooms? We repeatedly hear two answers from operators. The shorter one: It won’t be good. The more expansive reply: Let’s hope we won’t have to find out. • Article originally published by Restaurant Business online at RestaurantBusinessOnline.com on July 8, 2020.

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