CORONAVIRUS UPDATE
What restaurants and foodservice businesses need to know.
April 29, 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:
          
  • ORA Releases Latest Results of Owner/Operator Survey:
Devastation Continues
  • ORA Webinar: Reopening Your Business
  • CARES Act $320 Billion Additional PPP Funding - Letter to SBA
  • ORA Requesting Donations to Restaurant Employee Relief Fund
  • Sources of Critical Information for Restaurant Owners: Free Hand Sanitizer 
  • Important News & Reports for Our Restaurant Industry
  • Gov. DeWine News Conference
To ORA Members and Ohio’s Restaurant and
Foodservice Community
 
It is Week 7 since the State Order to close dine-in at restaurants in Ohio.
 
For nearly everyone in our food ecosystem - owners, operators, employees, suppliers, vendors, distributors and farmers - the vortex of closed restaurants, significantly lower sales than a year ago, lack of federal support that works for our sector, and high unemployment swirls around our industry. Our industry is devastated and will be slow to recover.

There are some restaurants - mostly pizza and quick-serve - that are producing good sales results with carryout, drive-through and delivery, although the majority of restaurants are still posting sales down versus a year ago (see new survey results below). Each week, more Ohio fine dining, family dining and independent restaurant owners are beginning to tip toe back into business with carryout and prepared meals. We are hearing this in hundreds of calls and emails from our members. Owners are beginning to execute plans with the hope that the state issues a new order to allow restaurants to reopen for dine in.

However, when Gov. Mike DeWine provided an update on Monday about businesses reopening, restaurant dine-in was listed as continued to be closed. The ORA immediately responded and requested the state provide two weeks’ notice and a May 15 date for reopening social-distanced dine-in.

This request is fair and reasonable.  The restaurant community, which employs 585,000 people in Ohio and provides 51% of all food dollars, expects to be treated similarly to other consumer-facing businesses that have already been approved to reopen on May 12.   READ FULL STATEMENT HERE.

We are pressing for reopening because much of Ohio’s economy has been shut down by the Director’s order and our businesses and the people who work in them are hurting. Ohio’s restaurants have been the most devastated business sector with the current restrictions on dine in service leading to more than 300,000 restaurant employees being laid off or furloughed and nearly 50% of all locations closed.

The ORA recently detailed the  level of devastation to Ohio’s restaurant and foodservice businesses.  See an update on the latest results below. 

Our sense of urgency is driven by facts: The second-largest employer in the U.S. and Ohio has lost more jobs and more revenue than any other industry in the country. This needs to be an alarm bell in D.C. and Ohio. The Paycheck Protection Program is good for many businesses, but it simply does not work for restaurants. Almost every operator we know is sitting on the money – praying that the program is changed retroactively – otherwise it will do little to help them come back, provide jobs, and stimulate our economy. Most importantly, restaurants need an industry-specific solution from D.C., which is discussed below.  
ORA: Restaurant Industry is Prepared for Reopening Safely

The ORA and National Restaurant Association have tirelessly focused on plans for owners to operate and reopen safely for employees and guests when dine-in is approved by the governor.

1)      The ORA completed and provided to the governor’s office on April 17 a set of recommended guidelines, which were co-drafted with the Ohio Environmental Health Association, which represents more than 100 health departments around the state

2)      The National Restaurant Association developed and published on April 22  “Reopening Guidance: A Guide for the Restaurant Industry. ”   The report was written by an expert task force –   READ MORE.

3)      The ORA is finalizing a document that has a strong guest facing element aimed at ensuring that our guests know all we are doing to ensure safety - and enlists them in that effort. Look for more details on the Ohio Restaurants Promise early next week. 

4)      Lt. Gov. Jon Husted on Tuesday asked the ORA to provide a targeted list of restaurant operators around the state – representing diversity of geography, business sizes, concepts and ownership types – to join an advisory group about best practices for reopening. The ORA provided the list on Tuesday evening. Ohio Legislative leaders are also providing input on that list. See a summary from the governor below. 
Ohio to Explore Reopening of Restaurants,
Barbershops and Salons
State officials will begin assembling groups of Ohio business leaders this week to explore best practices for the eventual reopening of restaurants, barbershops and salons statewide.

  • Two advisory groups – one for restaurants, another for barbershops/salons – will be formed this week, Ohio Gov. Mike DeWine said. Members of both groups will discuss best practices for reopening those industries, including which safety practices should be put in place.
  • DeWine spoke with Ohio Speaker Larry Householder (R-Glenford), Senate President Larry Obhof (R-Medina), House Minority Leader Emilia Sykes (D-Akron) and Senate Minority Leader Kenny Yuko (D-Richmond Heights) to identify small and large business owners who are involved in those industries.
  • The groups should include a wide cross-section of the industries, DeWine said.

"What works for a chain to keep customers distant, for example, might not apply to a neighborhood restaurant.", said DeWine.

  • Legislative leaders and relevant business associations are also encouraged to ask their members to suggest individuals to participate in those advisory groups.
  • Members will meet virtually by either video or phone.
  • "We intend to pull these groups together this week, start some discussions, look at best practices – we'll have some health people involved in that as well – and come up with some recommendations as we look to the future in regard to our next steps in this area," DeWine said.
  • The approach mirrors a similar strategy DeWine employed earlier this month when he established an advisory board to help state leaders work through the economic fallout caused by the Covid-19 pandemic.
  • The Ohio Restaurant Association has asked Gov. Mike DeWine to allow restaurants to reopen for dine-in business in mid-May. That is two months from the date the state prohibited dine-in sales at restaurants and bars.

While we are working on many important issues at the State level for stimulus and relief for employees and business owners, the ORA is also coordinating with the National Restaurant Association on a Federal strategy and tactics to:

  • Address fixes to the CARES Act – Paycheck Protection Program
  • Press for Business Interruption Insurance with a federal backstop
  • Request an Industry-Specific Blueprint as part of a Potential Phase IV Bill in Congress
See more below.

We urge you to keep the faith as we manage through this crisis caused by the COVID-19 Pandemic. These are unprecedented times and we are pressing every button to help protect this industry. 
  
  • If you are open and operating carryout, drive-through and delivery, continue to follow heightened standards for hygiene, cleanliness and sanitization, and social distancing, plus CDC and ServSafe guidelines.
  • If you are beginning to reopen for carryout, contact the ORA. We can provide the latest information, sources and experts. In fact, our Getting Ready to Reopen webinar on Thursday at 10 am will be dedicated to this topic (see below).
  • If you are closed and do not plan to reopen, reach out to us.

As always, please contact me, Tod Bowen, Laura Morrison or anyone on the ORA team with questions, concerns or ideas. We are all in this together – the ORA, owners, operators, employees, distributors, suppliers, vendors & farmers!          

Sincerely,
John Barker – President & CEO 
ORA Releases Latest Results of Owner/Operator Survey: Devastation Continues
Latest ORA Survey Shows Industry – Owners and Employees - Continue to Suffer

The ORA conducts a weekly Business Impact Poll of owners/operators in Ohio to track the ongoing health of restaurants. The latest poll was conducted April 26-28 and references information requested from owners and operators for the week of April 19-25.

Data from the survey shows continuing devastation, with significant sales declines (down between 20% to more than 70%) at 79% of restaurants.

Here are the specifics:
  • 46% of restaurants are seeing their year-over-year sales declining by more than 70%
  • 21% of restaurants are declining by 50-70%
  • 12% of restaurants declining by 20-50%
  • 5% of restaurants declining by 5-20%
  • 6% of restaurants are year-over-year sales flat
  • 2% of restaurants are increasing by 0-5%
  • 3% of restaurants are increasing by 5-20%
  • 2% of restaurants are increasing by 20-50%
 
Closed Restaurants
  • 50% of respondents have closed restaurants and 2% indicated a permanent closing (the national closure level is 3% according to the National Restaurant Association).
 
CARES ACT - PPP
  • 91% of respondents applied for the CARES Act – Paycheck Protection Program.
  • 58% of respondents who applied successfully received a loan.
 
Survey Summary and Selected Anonymous Comments from Respondents

Operators who are still serving have settled in to a new normal. For many this includes weekly discounts, take-and-bake or meal kit options and retail items for sale. Many operators have commented about keeping staff and guests safe, getting PPE, facing bills and desperately needing financial support:

  • “Trying our best to stay open with salaried staff to serve our small town.”
  • “It's more like community service than running a business right now. “Anxious to see how the additional funding funnels through for the PPP. We were told on the 10th that we were approved, then on the 17th told that the money ran out and we would not be funded! Chase has been our bank since 1955! Supposedly, our paperwork is ready and poised to submit today with the new funding. Chase says they should get enough to money. Crossed fingers, but not 100% trustworthy!!”
  • “Need some kind of funding soon, or it will be the end of this restaurant.”
  • “We are consistently educating our employees and customers about how to have a safe experience. We just want reassurance that we will have all of the masks, gloves and soap/hand sanitizer, and disinfectant that we need moving forward.”
  • “We have a 75-year history in the neighborhood, and customers have stepped up in ordering carryout, buying box lunches for others, and have donated over $10,000 to help the staff make ends meet. This week the loan money arrives, so I will be able to keep bringing more back to work to prepare for the reopening of the dining room!!!”
  • “Bringing employees back before we open just to utilize PPP dollars is wasteful and makes no sense. We need to be able to spend the PPP monies once we are open. That's how a restaurant can start to get back on its feet. Once we are open, we will have sales/cash flow to put towards the many other expenses. Paying for our labor with PPP is how we, again, start gaining some ground towards some profitability. The whole idea of PPP is to help the restaurant employ people. We have to be able to stay in business (paying all of our bills) and be profitable to do that.”
  • “We re-instituted our Pizza-of-your-heart shaped pizzas and allowing our customers to "round-up" their orders. The first week we received $1200 in donations and we will supplement that, of course. We are providing some of our strongest marketing during this time, good discounts/coupons, while we've seen very little from the competition other than TV commercials.”
  • “We are donating a meal each week to our local soup kitchen that serves about 120 people.”
  • “Closed - waiting for the Governor to let us open, take out would only give us 10-20 % of our sales, that would not even pay the utilities not alone the payroll and rent. I like how they decide what is ok to open and what is not, Doggy day care is ok and Garden centers how are they important.”
  • “This has to end soon, or we will not have a restaurant. We are independent, no-investors, family-owned. Our houses are pledged to the loan we got to open. We won’t just lose a business, we’ll lose our money, homes and restaurant property. The PPP has to be restructured if any are to survive this over the next year. We do not have start-up funds to reopen, yet we have the PPP, can’t pay vendors with it.”
  • “Feeding hospital staff.”
  • “Giving discount on meals for kids lunch.”
ORA Webinar: Reopening Your Business
CARES Act $320 Billion Additional PPP Funding - Letter to SBA
'Extremely disappointing' and 'entirely predictable' — slowdowns and lockouts plague second round of PPP - Some of the nation's
larger banks had more than 1 million applications for over $100 billion ready to go by 10:30 a.m., all backlog from the first round of applicants.

The latest round of funding from the Paycheck Protection Program opened up on Monday morning at 10:30 a.m. ET with a new set of rules for distribution of  the additional $310 billion in funds  — but a familiar-sounding set of problems. Lockouts, login issues and sluggish systems marred the Small Business Administration's loan approval process, with each bank unable to submit more than a few hundred applications. One bank was locked out of the system after submitting just 60 loans.
The system is so limited in its current state that it will take nearly a month to get through the entire queue, one banking executive told NBC News .
NRA Provides Letter to SBA to Address Fixes to PPP

The National Restaurant Association provided a letter to Jovita Carranza, Administrator U.S. Small Business Administration, requesting amendments to the CARES Act-Paycheck Protection Program (PPP). 

  • The changes are intended to make the PPP more flexible for small businesses, including restaurants and foodservice locations. READ LETTER HERE.  

Restaurant Blueprint for Recovery Action Plan

The ORA and the National Restaurant Association are asking Congress for an emergency fund to help restaurant owners survive. READ MORE .  

The NRA’s national survey shows the restaurant/foodservice industry lost $30 billion in March and is on track to lose an additional $50 billion by the end of April. READ MORE
 

  1. Enact the Restaurant and Foodservice Industry Recovery Fund (RFIRF) to utilize $240 billion to compensate restaurants for government-ordered closures, reopening start-up capital, rehiring and retraining employees.
  2. Fix structural issues with the PPP, including restrictions on requiring 75% of funds to be used for payroll.
  3. A Healthy Restaurants Tax Credit or Grant Program.
  4. Provide federal relief for employer’s share of unemployment insurance.
  5. Enact the “SNAP COVID-19 Anti-Hunger Restaurant Relief for You Act of 2020.”
  6. Increase funding for Economic Injury Disaster Loans (EIDL).

ACTION ALERT

The National Restaurant Association launched a nationwide grassroots campaign to encourage Congress to support the restaurant Blueprint for Recovery outlined in our letter to the Hill earlier in the week.

Treasury Department Provides Additional Guidance Regarding
 the Paycheck Protection Program (PPP)

Treasury has released additional guidance regarding the Paycheck Protection Program (PPP):

Interim Final Rule for Seasonal Employees:

For more information and updates:
The ORA continues to focus on amendments to the CARES Act – Paycheck Protection Program and Business Interruption Insurance with federal backstop. Please read NRA’s Earlier Letter to Congress, ORA’s Letter to Sen. Portman, ORA’s Letter about Business Interruption Insurance with a Federal Backstop ( signed by 100+ restaurant leaders).

ORA Requesting Donations to Restaurant Employee Relief Fund
Now more than ever, with more than 300,000 restaurant employees laid off or furloughed, the Ohio Restaurant Association and its Education Foundation are here for you!

  • In response to the catastrophic impacts COVID-19 has had on the restaurant, hospitality, and foodservice industry, we have formed the Ohio Restaurant Employee Relief Fund to activate emergency funding for personnel in the foodservice industry who have been affected.
  • The Relief Fund provides emergency funding as a single disbursement grant to be used exclusively to provide foods, shelter and health care for our industries’ employees and their families.  Applications have come in from every corner of the state.  
  • Our fundraising plan encompasses grassroots efforts, corporate solicitations and grant application opportunities to provide assistance to such deserving applicants at the time it is needed the most.
Cincinnati Chef + Food Network Star Christian Gill supports   #OhioRestaurantsRelief
Sources of Critical Information for Restaurant Owners
ORA + OHLQ partner to protect Ohio restaurant businesses with FREE hand sanitizer distribution

Neither rain nor wind could keep ORA and OHLQ from distributing much needed hand sanitizer to ORA restaurant members in Cleveland. As a necessary business, restaurants must stock hand sanitizer in the front and back of the house and it’s been a struggle to find it. OHLQ heard our industry’s plea for help and is donating to our restaurant industry operations throughout the state. How can you get some? 

Bring a copy of this announcement to one of the locations listed below. We will be out distributing the next four business days in Cincinnati, Toledo, Dayton & Columbus. These members got some, will you?  Thank you, OHLQ, for your donation of hand sanitizer for ORA restaurants! See you in Cincinnati on Thursday & Toledo on Friday! 
Do you have experience working in the hospitality industry (restaurants, hotels, cafes, etc.)? We want to hear from you!
UnitedHealthcare and the ORA have partnered with Active Minds to learn more about and respond to the mental health challenges and needs you’re facing in your workplace.
¿Tiene experiencia trabajando en la industria hotelera (restaurantes, hoteles, cafeterías, etc.)? ¡Queremos saber!

Nos hemos unidos con Active Minds para obtener más información y responder a los retos y necesidades de salud mental que enfrenta en su lugar de trabajo.


Take the short survey today.
English:

Complete esta breve encuesta hoy.
Español:
DORAs, Craft Beer and Hand Sanitizer
Important News & Reports for Our Restaurant Industry
Restaurant Reopenings: Louisiana and North Dakota Start May 1

Louisiana and North Dakota are the latest states to announce a walk-back of restaurant restrictions beginning May 1. While table service will still be restricted in Louisiana, consumers can order take-out and utilize a restaurant’s outdoor seating. Dine-in service at North Dakota restaurants, on the other hand, can resume at a 50 percent capacity. Note that specific counties and municipalities can reopen on an alternative timeline depending on local conditions. View the latest table of states that are reopening here.
 
“New Normal” as Restaurants Reopen

As restaurants in some states begin to resume dine-in service with limited capacity, employees and consumers alike will face new practices intended to lower the probability of the virus re-emerging. Among popular precautions, employees will be required to wear face masks, disposable place mats and menus will be utilized in lieu of reusable items and, upon entrance, consumers and staff will be screened for fevers via touch-free thermometers.
 
Trump to Force Meat Processing Plants to Remain Open

Amid growing shutdowns of meat processing plants across the U.S.—which has sparked fears of a looming food shortage—President Trump is evoking the Defense Production Act to compel these businesses to remain open. The federal government will reportedly provide workers with personal protective equipment and release guidance for how to safely operate. According to Bloomberg, 18 meat plants across the U.S. have closed amid the pandemic.



Restaurant owners and operators are preparing for when @GovMikeDeWine decides to amend the order to bring back dining in. @OhioRestaurant wants a May 15 start date for social distanced dining.



In a setback for a group pushing to raise Ohio’s minimum wage via Constitutional amendment, a Franklin County judge has rejected  a lawsuit  seeking to allow electronic signature gathering for Ohio state issue campaigns, among other changes loosening ballot-access rules, amid the coronavirus pandemic.



Gov. DeWine News Conference
Ohio’s COVID-19 case data is below:
  • 16,601 confirmed cases
  • 702 probable cases 
  • 17,303 total cases
  • 3,421 hospitalizations
  • 856 confirmed deaths
  • 81 probable deaths
  • 937 total deaths
  • 1,014 ICU admissions
More data is available on the COVID-19 Dashboard   here .
 
Gov. DeWine announced today that the state of Ohio has shipped 4.1 million pieces of personal protective equipment (PPE) to local emergency management agencies (EMA) across Ohio. The shipment includes: 500,000 N95 masks, 850,000 face shields, 750,000 surgical-type masks, and 2 million non-medical gloves.
 
Lt. Gov. Husted today reemphasized that face coverings are required for employers and employees while on the job . Exceptions for employers and employees include when: 
  • an employee in a particular position is prohibited by a law or regulation from wearing a face covering while on the job;
  • wearing a face covering on the job is against documented industry best practices;
  • wearing a face covering is not advisable for health purposes;
  • if wearing a face covering is a violation of a company’s safety policies;
  • an employee is sitting alone in an enclosed workspace;
  • or there is a practical reason a face covering cannot be worn by an employee. 
If any of the exceptions apply to a business or employee, written justification must be provided upon request.
 
Gov. DeWine announced that nearly $16 million in grant funding is now available for local law enforcement agencies, probation and parole offices, local courts, victim service providers, and adult, juvenile, and community corrections agencies . This funding was awarded to the Ohio Office of Criminal Justice Services (OCJS), a division of the Ohio Department of Public Safety, as part of the CARES Act. OCJS will accept applications on a continual basis while funding is available, and there is no cap.  For more information, please visit  www.ocjs.ohio.gov .
 
The Ohio Department of Education and Ohio Department of Health today issued suggestions for local schools and health departments. Suggestions include virtual graduation ceremonies (preferred) drive-in ceremonies, or outdoor ceremonies. Governor DeWine also stressed that graduation parties cannot exceed 10 people in one space. Additional guidance on graduation ceremonies can be found  here .
 
More detailed information on the Responsible RestartOhio plan can be found at  coronavirus.ohio.gov/ResponsibleRestartOhio . 
 
As always,  Coronavirus.Ohio.Gov  and the Department of Health hotline, 1-833-4-ASK-ODH are great resources for those who have questions. 
Follow us and share updates with your fellow restaurateurs. 
We’re all in this together.  
For additional questions, please contact the following ORA staff:

For questions, related to the members and restaurant community:
 
JOHN BARKER
President & CEO
 
LAURA MORRISON
Managing Director of Membership & Employer/Food Safety
614.246.0205

TOD BOWEN
Managing Director of External Affairs & Government Relations
614.296.2310

FOR ALL MEDIA REQUESTS:

HOMA MOHEIMANI
Manager of Media & Communications
614.315.0572
hmoheimani@ohiorestaurant.org
Join this conversation in real time with your peers in the CONNECT online community.

It's easy to join this private Facebook group exclusively for ORA members. Click the logo to go there now.