Article
How Independents are Preparing NOW for Cooler Weather
While operators have implemented safety measures in their restaurants to promote a return to dine-in, many customers still feel safest outdoors, where fresh air reduces the likelihood of virus transmission, according to studies.
Cities have rushed to grant outdoor permits to restaurants, closed down streets to car traffic and taken other steps to support outdoor dining. As media franchise "Eat This, Not That" reports, more than 10,000 New York City restaurants received outdoor dining permits. In Chicago, the Expanded Outdoor Dining Program connected more than 250 restaurants to permits. And in San Francisco, 1,000 restaurants received free, temporary outdoor dining licenses to make use of a parking lane or sidewalk to support curbside pickup or outdoor dining.
If you operate a full-service restaurant where fall is greeted by frost, you might have found those lyrics far more pleasant last year. In this article, we explore how independent restaurateurs are preparing for cold weather in the wake of the pandemic when dining al fresco might be safer, but not so delightful.
Operators spent the summer maximizing their outdoor spaces, including parking spaces, and used family style promotions or to-go alcohol sales to incentivize curbside pickup, says Jean Chick, the US Restaurant & Food Service Leader for Deloitte LLP.
Yet with fall on its way, the outdoor dining areas that have given consumer confidence and helped restaurants weather the crisis won't be usable for much longer. So, restaurant operators are adjusting again for fall, by making efforts to winterize their outdoor spaces and continuing to think about what comes next. "As we move into the fall and winter months, this will be another learning experience in the COVID pandemic," says Chick. "People are going to have to be flexible and adapt, try new things, see what works and what doesn't, and then adapt accordingly."
Restaurant operators aren't expecting a return to normal anytime soon, and many won't be able to bring in enough volume indoors to turn a profit. To make use of outdoor dining space for as long as possible, here's how operators are preparing for fall.
Maximizing Space--Indoors and Out
Savvy operators are already creative in how they're using their space while respecting state-mandated capacity limits and social distancing requirements that tables be spaced six feet apart at minimum.
But Chick recommends operators take it further, using math to figure out the highest capacity counts possible given restrictions and thinking through the logistical considerations to make sure they're maximizing every inch of real estate, whether it's inside or on a patio: "How many hours, how many people can I seat within the restrictions, how often can I rotate tables, do I need to buy different tables or remove larger tables and have four and two tops only?" are questions she recommends operators ask themselves.
"Bar seating [is] where they make their money," Chick says, adding operators are starting to bring customers back to the bar -- in a socially distanced way, of course. By slashing capacity at bars and grouping off seats to accommodate distance -- leaving two seats together, blocking off two, then two more open bar seats -- operators can give people another area to go while creating the feeling of safety customers require to choose indoor dining.
But Chick recommends operators take it further, using math to figure out the highest capacity counts possible given restrictions and thinking through the logistical considerations to make sure they're maximizing every inch of real estate, whether it's inside or on a patio.
Gary Worden, owner of Piropos Restaurant in Kansas City, Missouri spread tables 6 feet apart to accommodate state guidelines, losing 15 tables in the process. To mimic a patio ambiance and maintain distance indoors, Worden built planter boxes between the tables. The greenery is refreshing; combined with 12-foot windows, it makes the dining room feel as though it's outdoors. "We're getting a lot of comments that people feel very safe and isolated in the restaurant," Worden says.
Given the lowered capacity in most markets, which keeps traffic below the volume needed to make most establishments profitable, Chick says she expects to see operators set limits on how long guests can stay in the restaurant. "Continuing into fall, and as it gets colder, you get a time slot to come in and you have 90 minutes" to enjoy your meal, Chick explains. This way, operators can turn tables more times throughout the night while avoiding the overcrowding that might develop as guests wait for a table.
Bo Peabody, who owns and operates Mezze Restaurant in Williamstown, Massachusetts, and is the Co-Founder and Executive Chairman of restaurants rewards platform Seated, recommends using Seated as a way to manage guest traffic through customer rewards. By dangling a coupon for a visit that's connected to a specific time of the night or a day of the week ("25 percent reward to come in at 5 p.m. but only 10 percent reward to come in at 8 p.m.," Peabody explains), operators can spread out visits so everyone feels comfortable.
Peabody also suggests operators think about ways to make diners feel more comfortable when they're indoors and proactively communicate to customers what they're doing to make indoors feel safe.
"Keeping windows open as much as you can, even in the cold weather, will be necessary to make guests feel more comfortable about the safety of dining indoors," Peabody advises. Indoor air purification is the big-ticket item to consider, says Peabody, who recently invested in a $1,900 air purification system that continually purifies the air inside the 100-seat restaurant.
Extending the Patio with Tents and Heaters
Given how comfortable guests feel outdoors, many operators are making investments in things like heaters and tents, which help to extend the comfortable use of outdoor dining space through the colder months.
After Bobby's BBQ in Fountain Inn, South Carolina closed its dining room during COVID restrictions, owner Octavius "Tay" Nelson purchased new picnic tables and umbrellas to offer outdoor seating. The BBQ restaurant also has a covered patio space that can seat 30 people, with four tables, a television, and some heaters for comfort.
"Even in the winter at lunch, the sun is out and it's still enjoyable. It's just in the evening there are problems here and there," Nelson says. He's thinking of getting propane heaters for the picnic tables so guests can stay warm during dinner service.
Because that's "where many diners feel more comfortable," Peabody is using heaters to keep guests comfortable at Mezze. He sourced heaters from Home Depot and expects that three heaters will keep the patio's 30 guests comfortable, even when temperatures fall into the 40s. Peabody spent $149 per heater and "$50 to fill all three tanks, which lasts through four nights of service."
Pat McGaughran, founder of Rio Grande Mexican Restaurant, which now has six locations in Colorado (Boulder, Denver, Fort Collins, Greeley, and Park Meadows) says outdoor dining has been "a great opportunity for us to capture some sales" during a difficult time.
Each location of Rio Grande Mexican Restaurant has some type of outdoor space, though the configuration differs. Some communities have opened up sidewalks for outdoor seating, while others allowed McGaughran and his team to take over the street. They've also been able to extend the space on an existing patio; their largest outdoor space has a capacity of 100, McGaughran estimates. "There's nothing enclosed. We have umbrellas, but we do get rain on occasion," McGaughran notes. While many of Rio Grande Mexican Restaurant's customers are willing to dine inside, McGaughran says that outdoor seating continues to be popular.
Six to eight weeks ago, McGaughran started thinking about how to safely accommodate outdoor seating when the weather turned cold. He measured the patio spaces at each restaurant and invested in several portable heaters to help extend the time diners would be willing to sit outside. McGaughran chose the "propane type mushroom heaters" for tables as well as smaller radiant heaters that attach to fuel tanks. By combining the overhead radiant heat with the smaller radiant heaters, McGaughran is "hoping to encourage people to stay outside even when it drops below 50 F."
Currently, he's looking into shipping container structures as an economic way to create a permanent outdoor structure. Given that many customers remain reluctant to return to dine-in until there's a vaccine, Watson's permanent patio addition may be something to consider.
"By Halloween we start to get snow," McGaughran says. "Then it goes into November, which starts to cool off. The best-case scenario is we get into and maybe through November with this," he estimates. On warmer winter days when the sun is out, he thinks it might be possible to use the outdoor space.
While he thought he was trying to get ahead of the demand for heaters by shopping early, McGaughran found shortages of the mushroom style of heater he wanted to buy. He was able to get two-thirds of their total heaters in the preferred mushroom style but had to spend more for a different type of heater (the lava heater style, where the flame is visible) to complete his needs. While the lava heater has a nice ambiance, it's not as effective as the mushroom heaters he wanted. Still, McGaughran counts it as a win: ultimately "we were able to stay within the budget," he explains.
While McGaughran purchased the heaters, he decided to rent the fuel tanks. "We negotiated with fuel companies to supply storage racks, fuel tanks and refills twice a week... so we can concentrate on operation, rather than hauling fuel tanks back and forth to a fueling station," he explains.
Hops & Pie, a Denver, Colorado craft beer and pizzeria, had no outdoor space pre-Covid, so owner Drew Watson considered himself lucky to snag a permit to convert an adjacent parking lot to a patio. He then built his own tables for the patio, a task that came with an unexpected delay when he encountered a shortage of wood. The converted patio space, now complete, seats 65-75 people and allows for safe social distancing.
"We go really overboard with the safety," Watson says. In the dining room, there are only seven tables, spaced nine feet apart. While guests appreciate the safety measures, and many do dine inside, Watson says that if there are tables inside and a wait for the patio, there are still guests that say they'd prefer to wait.
The outdoor space is a nice amenity to have, and Watson plans to make the patio permanent. He's currently applied for permits, but says the city building department often takes a while. He plans to keep the tent up through the winter for as long as it's feasible, and says he wants the permanent structure to have a roof and the ability to be enclosed during the winter. Currently, he's looking into shipping container structures as an economic way to create a permanent outdoor structure. Given that many customers remain reluctant to return to dine-in until there's a vaccine, Watson's permanent patio addition may be something to consider.
While Watson expects the permanent structure to be complete next year, he's invested in a 40' x 40' tent to shelter diners and accommodate extra volume, and a heater to keep guests warm. Watson considered renting over purchasing, but found that "the long term rental cost is like three times" the price of the tent, which he ordered from Wisconsin-based American Tent. An eight-week lead time for the tent means that Watson won't actually be setting it up until late October.
In Chicago, where she's based, Chick says that "rental companies are sold out of tents right now in the summer and it's going to stay true in the fall." Operators who haven't yet secured a rental may be out of luck; while purchasing is possible, that eight-week lead time Watson experienced means that a tent may arrive too late to be of use.
Rick Camac, Dean of Restaurant & Hospitality Management at the Institute of Culinary Education, isn't as worried about a shortage of tent rentals. He suggests operators contact the company that supplied their awning, if they have one (or get a referral, if they don't). Since these companies "offer storage, install, take down and maintenance as part of the package," it's one less thing to do in a time when many are feeling overwhelmed.
Chick says she's seen interest in fire pits and fire tables that accommodate outdoor seating and "have a table surface where people can eat appetizers and put drinks on them." Fire pits don't put out as much warmth as the propane heaters, but they can be effective in milder climates or for ambiance. Items like blankets (laundered in between use, naturally) can likewise contribute a bit of extra warmth.
As it gets darker earlier, Camac recommends that operators make sure that outdoor dining spaces are well lit. Lighting affects the ambiance and the mood, but it also keeps customers safe. If guests can't see their way to the door without a phone flashlight, chances are they won't be back.
Seasonal Promotions
Camac suggests seasonal, local foods give operators an advantage in these times. "The less hands that touch your product getting to your restaurant the better. And in today's times, that's worth promoting--not to mention the lessened carbon footprint!" he says.
While Nelson and McGaughran both say they'll keep their menus as they are, since customers like the tried and true dishes, Chick mentions that many restaurants are simplifying their menus or promoting the sort of warm, "fun fall things and pumpkin-themed things [that] keep the interest for people coming into the restaurant."
Warmer dishes like soups and stews are not only the sort of emotionally nourishing dishes people want to eat as temperatures drop, they're perfect for to-go packages (like family-style dinners) and will help supplement the heat from a patio heater while folks are dining outside.
And when people do come in, it's worth reflecting on the fact that they might not have been in your restaurant (or anyone else's) in quite some time. Smart operators will go the extra mile to make the return feel special for customers, whether by dangling a special offer (like a free dessert or happy hour special) to get them in the door or by using hospitality touchpoints to make guests feel welcome, even though the ordering and dining experience has changed from what they're used to.
Worden recently created a new radio advertisement, showcasing the positive feedback Piropos has received from customers regarding safety. Taking language from customer reviews that praise the restaurant's safety efforts, the new radio spot can help consumers feel confident in returning to indoor dining.
Last Thanksgiving, Nelson sold over 400 pounds of smoked turkey, which is something that "not a lot of BBQ places do." This year, he's hoping to sell more. The turkey comes sliced and vacuum sealed, accompanied by a pint of gravy. To accompany the holiday bird, Nelson offers half pans of classic holiday side dishes like mac and cheese, green beans, cheese and potato casserole, and sweet potato crunch. "No fuss, no muss -- you pick it up from Bobby's, so a lot of people appreciate the convenience," Nelson says.
Thanksgiving will probably look different from holidays past, and an easy, comfort food offer can entice customers who are looking for that familiar routine in a year with no normal.
Challenges on the Horizon
McGaughran is far from alone in experiencing supply-side shortages when shopping for patio equipment.
As early as March, market research outlet Freedonia Group forecast a shortage of patio heaters. What may have seemed like a doomsday prediction was borne out, as when Maker interviewed Dan Munger, director of sales at New Jersey-based DMC Facility Services. The calls began in July, Munger says; telling Maker that he's received 75 percent more inquiries for heaters than in years past. In mid-August, The New York Times reported that home goods retailer Wayfair experienced a 70 percent increase in searches for patio heaters for a 5-week period spanning July and August and that Amazon reported a similar increase in patio heater purchases from April to June.
Supply-chain shortages caused by coronavirus are affecting the manufacture of heaters. Companies may have the parts on order, having anticipated the unprecedented demand, but they can't solve the logistical challenges of getting the parts to the plant so they can ramp up production.
Heaters, of course, don't just keep customers comfortable while they're dining at a picnic table or under a tent. They help operators accommodate more guests than a dining room operating at 25-50 percent capacity, and this volume is essential for profitability. When a restaurant can't get heaters or when outdoor dining permits expire, as is set to occur on October 31 in New York, it becomes time to move guests indoors. The big question on everyone's mind is, can I do enough volume to make the numbers work?
Camac recommends operators plan to handle 25-50 percent indoor operations by November 1, if they aren't already. If that's not feasible and outdoor dining is not possible, Camac says "it would honestly be an ultimate 'death knell' and you may as well shut down for the winter (at least)."
Nelson, Watson, and McGaughran all agree that it's difficult to plan for what's next. "We imagine we'll be operating under restrictions for the foreseeable future," says McGaughran, who doesn't expect there'll be "any true relief until spring of next year."
Ultimately, things like outdoor dining have helped bring in enough income for these operators to make it through this crisis, and they've all expressed gratitude and appreciation for their customers who are helping them make it through this difficult time.
SPACE FORCE
Maximizing Your Dining Room Potential During COVID-19
By Stephani Robson | Photos by Sheila MacDonald
As local and state government gradually allow restaurants to re-open and expand capacity of their dining rooms, you may be struggling to comply with all of the regulations while at the same time trying to figure out how to get your guests to sit at your tables. Here is what you can do to maximize your potential to generate revenue from the tables you are allowed to fill.
Local health departments typically ask that tables be spaced no closer than six feet apart, but what exactly does that mean? What these regulations really should be saying is that you need to space parties so that members of a given group are at least six feet away from other groups, because the important detail here is that guests need to be out of range of airborne droplets originating with other diners.
To accommodate this spacing with freestanding tables, many operators remove some tables from the dining area to leave enough room to spread out the remaining tables so that there is at least six feet from seatback to seatback when diners are sitting down. This means that you need to space the tables themselves further than six feet apart -- in fact, you'll need closer to eight feet from table edge to table edge once accounting for the size of the chairs. On banquettes where you have a row of parallel tables, you can position those tables exactly six feet apart, put- ting any excess tables and chairs into storage for now.
If your restaurant has booths, you obviously cannot remove them from the floor to get the necessary distancing. If your booths are big enough, you may be able to use only every second booth in order to get six feet clear between seated parties. However, in some parts of the country, health departments are allowing operators to seat guests at adjacent booths if the separator between the booths is high enough.
These separators need to be at least five feet high from the floor to be effective and can be made of any material that can be sanitized between parties. If you are allowed to use vertical separators for your booths, you should. Research indicates that guests not only prefer the security and comfort of booths -- not just during pandemics! -- and that they actually may spend more money when they are seated in a booth than they will at other types of tables.
The reason that guests prefer booths is that they provide more physical barriers between the guests and other diners. In general, people like to protect the space around them when they are out in public. To help guests feel more comfortable dining inside, move as many tables against walls or other architectural features as you can. Having at least one side of the table protected by a wall is psychologically better than a table that is open on all four sides. Anything we can do to make our guests feel more comfortable will give them a better experience and encourage them to return.
Guests also may feel a bit awkward with a lot of empty space around them, so consider adding some décor elements between widely spaced tables so that guests don't feel quite so exposed. If your health department will let you, put unused tables between usable tables and put some form of décor like flowers or wine displays on those empty tables to make the dining room feel fuller and more alive. (Just don't set those unused tables -- you don't want to imply that those seats are open for use.)
If you can't use your existing tables in this way, consider some other kind of furnishings to place in the gap between tables: planters, decorative carts, or even open bookshelves from IKEA. However, clear plexiglass panels are probably not your best choice here as they can look quite clinical and probably out of place with your restaurant's vibe. Choose something that's a better fit with the look and feel of your operation to help guests feel at home.
