Business interruption insurance; we need your help

CORONAVIRUS UPDATE

What restaurants and foodservice businesses need to know.

April 18, 2020

This is an update on the 2019-nCoV Coronavirus issue and related topics.

This update to our ORA members and the Ohio restaurant, foodservice and hospitality community addresses rapidly evolving news and the following topics:

Advocating for Our Industry – What’s Next?
Ohio Restaurant Employee Relief Fund Building Donations for Employees
Sources of Critical Information for Restaurant Owners
Important News & Reports for Our Restaurant Industry

TO ORA Members and the Restaurant Community,

We are now 5+ weeks into the crisis caused by COVID-19 and a state order to close dining inside restaurants. The devastation to our industry can NOT be overstated.

The situation is unprecedented in our lifetimes and worsening as the shutdown of business continues and consumers deal with the uncertainty of a weakening economy and the prospect of an economic depression.

This is the Situation:

51% of restaurants in Ohio are closed.
Many owners believe they may never reopen.
For locations that remain open with carryout, drive-through and delivery, ORA survey results show sales declining -20% to -90%.
Some restaurants quickly pivoted their business models to more online ordering and contact-free transactions. This appears to be producing better results for some, but requires a new operating model and investment at a time when owners are struggling with cash flow.

Restaurants and foodservice operations that rely on guests dining together anticipate reopening with significantly lower sales volumes, perhaps 40% to 50% of previous levels, which may force them to remain closed as they can’t operate profitably.
Bars, clubs, craft breweries and other venues that rely on large crowds of guests may be much later to reopen if Ohio follows guidelines provided by the White House for phased reopening, strict social distancing and other measures. Read the guidelines here
Unemployment across the U.S. and in Ohio is soaring as 22 million Americans have filed claims
We believe our industry represents the highest percentage of those unemployed.
READ MORE.

Government Stimulus and Relief Has Run Out for Businesses

The Small Business Administration's $349 billion Paycheck Protection Program had a short life as its funding quickly dried up and lenders across the country exhausted the program by Thursday morning, less than two weeks after the first applications were accepted. Congress failed this week to approve additional funding for the program and left the nation's small businesses, and their banks, with no clarity on a solution.

CNBC and other news media report:

Less than 9% of SBA loans went to foodservice and restaurants, an industry crushed first and deep by the COVID-19 crisis.
Loans went to many industries and firms that are not nearly as in need of the stimulus relief.
Companies with major banking relationships got loans, while many small, independent businesses were unable to apply or were left waiting as funding ran out. WATCH MORE

This is a travesty for many of the 1 million+ restaurants in America

Ohio businesses are set to receive more than $14.1 billion in loans via the federal Paycheck Protection Program (PPP), according to new data from the U.S. Small Business Administration. With 59,800 loans approved, the state ranks seventh nationwide in terms of both the number and dollar amount of loans approved.

The $349 billion program, meant to help small businesses keep their employees on payroll and their operations intact in the face of widespread shutdowns and slowdowns caused by the coronavirus pandemic, burned through its allocated funding in just 14 days.

Nationally, “Accommodation and Foodservice” got $30.5 billion out of the $349 billion funding.

Here's how much Ohio businesses are getting from the now-depleted Paycheck Protection Program

PPP in Ohio: Here's what the state landed from the coronavirus relief program - Columbus Business First

So, What’s Next?

The ORA and National Restaurant Association are communicating with the President, Treasury Department and Congress about solutions to help our industry survive:

Additional funding for the PPP and Economic Injury Disaster Loan programs
Amendments to the PPP so that it can actually be used by owners and operators for expenses other than payroll and still be forgiven
Federal backstop to Business Interruption Insurance, which would help businesses of all sizes and level the playing field by utilizing insurance processes for filing claims for damages, investigating and processing
Restaurant Recovery Act to address one of the most important economic sectors in America

A summary of our requests last week are included in ORA Letter to Sen. Rob Portman and the National Restaurant Association’s letter to congressional leaders .

See the ORA’s letter about Business Interruption Insurance

We will be providing a major update to this comprehensive public affairs program early next week. It will include new communications to leaders in D.C. – letters, calls and webinars. We have learned a tremendous amount of information over the past week in calls with Sen. Rob Portman, Sen. Sherrod Brown, Sen. Mitch McConnell’s office and other members of Congress. This is guiding our plans going forward to advocate for much-needed steps.

Our requests to elected leaders bank on a central fact – this industry is critical to the economy. Restaurants and foodservice locations employ 15.6 million people, or 10% of the U.S. workforce, which is much larger than the airline industry that received a special bailout. Our industry represents 4% of U.S. GDP. READ MORE.

We need your help!

Please review information and materials on our website - Coronavirus Updates page – and write to members of Congress. Your voice matters.

We have prepared a list and contact information for key staff contacts for all Ohio Members of Congress.
Contact Tod Bowen with any questions and let him know of your contacts with our elected officials.

In summary, this is a pivotal time for our industry. We know from speaking with hundreds of our members in Ohio and our colleagues around the U.S., that frustration is rising as the toll on business escalates. We all need to stay informed, plan for the short-term assuming there will be a reopening of business in Ohio with restrictions.

We are waiting for more guidance on this from Gov. Mike DeWine. The ORA developed draft language for reopening the restaurant and foodservice industry and partnered with the Ohio Environmental Health Association to deliver this information to the Administration.

As always, connect with your ORA team with questions and concerns. We are all in this together.

Sincerely,

John Barker – President & CEO

Please Complete the New ORA Survey of Owners/Operators

Each week the ORA provides a survey for owners and operators to fill out and respond concerning restaurant closures, sales and other data. This information is used to help determine our crisis strategy, share with the restaurant community, for our discussions with elected officials and to share with news media.

This week we are adding questions about the PPP program – did you apply and did you receive approval?

Please complete the new survey ASAP

TAKE THE SURVEY NOW

Economy Continues to Weaken

The prospect of restaurants remaining closed and facing significant sales pressure for weeks or months is eroding confidence of our business owners. Furthermore, a new report from the University of Michigan Surveys of Consumers says the full restoration of consumer confidence will be more difficult and will take longer to complete than following any other recession since the Great Depression.

U.S. consumer sentiment suffered a record decline in April as coronavirus infections grew, thousands of businesses are closed and millions of Americans are laid off. The University of Michigan’s preliminary sentiment index plummeted 18.1 points to 71. The measure stands at its lowest since 2011.

U.S. Unemployment Claims

Ohio Restaurant Employee Relief Fund Building Donations for Employees

OhioRestaurantsRelief.org is established to help support the most vulnerable people in our restaurant industry who have been laid off due to the COVID-19 crisis.

Please donate today.
We are reviewing applications and plan to begin disbursing grants next week.
Contact Melissa DeGraw at [email protected] for more information

DONATE NOW

There are many other great organizations that are supporting our #OhioRestaurantsRelief Fun through their own products and services.

Do you want to donate proceeds from a campaign, product or service to support industry workers in need?

Have a great story to share? Email [email protected]

Sources of Critical Information for Restaurant Owners

The ORA continues to operate full speed to promote and protect our industry; provide assistance and resources; and provide a central location for critical information on our website and social media.

We are planning additional ORA webinars and will continue to provide links to helpful webinars provided by our vendor partners.

Liquor Control Order – Reminders

On April 7, the Ohio Liquor Control Commission Passed and Gov. Mike DeWine announced an Emergency Revised Order for Carry Out and Delivery Sales of Beer, Wine, Mixed Beverages and Spiritous Liquor

The ORA had been advocating for the addition of spiritous liquor for carry out and delivery. On April 7th the ORA participated in an Emergency Meeting of the Ohio Liquor Control Commission in which they approved forwarding the proposed rule to the Governor, who then announced it at his daily news conference that day.
As a reminder, the order and liquor sale parameters are below. The recent Executive Order added rights of permit holders however, it did not amend license language within the statute. Operators should closely adhere to the rules of the liquor license they’re in possession of and this expansion of the individual sale order below.
Here is the Order: Emergency suspension of sales of beer, wine, mixed beverages, and spirituous liquor for on-premises consumption. Expansion of sales for off-premises consumption. This rule reflects the need to ensure the public health and safety of all Ohio residents and to prevent the spread of COVID-19 within the state of Ohio. It shall apply to all liquor permit holders that are authorized for on-premises consumption, whether for general consumption or tasting samples, of beer or intoxicating liquor.

A. All permit holders are prohibited from selling or furnishing beer or intoxicating liquor for any such on-premises consumption.

B. Sale and delivery of beer, wine, and mixed beverages in the original packages for off-premises consumption is permitted by the holders of these permits to the extent permitted by law or rule.

C. Liquor permit holders authorized to sell for on-premises general consumption may sell and deliver beer, wine, mixed beverages or spirituous liquor by the individual drink for off-premises consumption, provided the following requirements are met:

The permit holder may sell and deliver drinks that it prepares on the premises for a personal consumer for off-premises consumption;
Spirituous liquor drinks cannot contain more than two ounces of spirituous liquor per container;
All drinks sold must be in a closed container;
Any sale under this paragraph shall include a food purchase from the premises;
No more than two drinks may be sold per meal;
The permit holder must comply with all applicable state tax laws; and
The permit holder remains subject to all liquor laws and rules including hours of operation, minimum age requirements, and the prohibition against sales to intoxicated persons.

D. All purchases are subject to open container law upon leaving the permit premises.

E. All persons engaged in the sale of beer, wine, mixed beverages, and spirituous liquor for consumption off the premises where sold should reasonably attempt to ensure that all patrons and staff maintain a distance of six feet or greater when possible for the health and safety of all individuals engaged in the transaction.

For questions contact Tod Bowen .

House 2020 Economic Recovery Task Force

The House 2020 Economic Recovery Task Force continued this week via videoconference with the Ohio Chamber of Commerce and additional small businesses providing testimony on the economic impact of the COVID-19 virus. The ORA provided a live report on Tuesday. The Task Force will take the weekend off and resume on Monday. Task Force Chair Paul Zeltwanger has not issued an updated deadline for the Task Force report to the Governor, but he has indicated there will be multiple hearing dates next week. The Task Force created Twitter and Facebook accounts that can be found at @OHTaskForce2020.

Impact Ohio Update

ORA partner Impact Ohio’s comprehensive update of announcements and orders can be found here

Important News & Reports for Our Restaurant Industry

Thunderdome Restaurant Group in Cincinnati

Restaurant group expects safety to be at the top of the menu when doors reopen - wcpo.com - The co-founder of the Thunderdome Restaurant Group has been working on a plan to reopen while assuming a new normal on the other side of the COVID-19 crisis. What will that look like? Safety first, Joe Lanni told WCPO 9. “We know that they’re going to require us to do some kind of social distancing,” said Joe Lanni, whose restaurants include Pepp and Delores, The Eagle, Bakersfield and more. “We know that they’re going to require us to have masks available and new types of things. The things that we either know or are pretty certain are going to occur, we’re starting a plan around.”

Restaurants Innovate to Stay Afloat, More Than Half Closed – Spectrum

"John Barker" +restaurants on Dayton's CW - Dayton, OH

Ohio Restaurant Association on WSYX-CBO (ABC) - Columbus, OH

Ohio Restaurant Association on WTVN-AM (Radio) - Columbus, OH

"John Barker" +restaurants on WSYX-CBO (ABC) - Columbus, OH

Ohio Restaurant Association on WLW-AM (Radio) - Cincinnati, OH

Door Dash experiencing website outage

Many Ohio restaurants are supporting health care professionals on the front line

Thank you to Darrell van Ligten and the team at Genjigo for the free lunch today. Delicious! If you want to support a business that truly supports our community, visit genjigo.com. If you're a healthcare worker on the front lines like us, you'll receive a 20% discount on your carryout or delivery order when you order online.