What restaurants and foodservice businesses need to know. |
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This update to our ORA members and the Ohio restaurant, foodservice and hospitality community addresses rapidly evolving news and topics. |
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- ORA Battled for Our Industry During the Year-Long Pandemic and Continues to Press for Resources and Support at the Federal, State and Local Levels
- ORA Business Impact Poll: Sales are Improving + Operator Confidence is Growing as We Move Towards Summer
- Federal Update: $28.6 Billion Additional Lifeline Coming for Restaurants and Bars
- Cleveland Chef Rocco Whalen: “I think it’s Going to Really Stabilize a Lot of Places That are Maybe on the Fringe or Not Prepared for the Future”
- Are You Involved? Do You Want a Voice in D.C? Register for the 2021 Public Affairs Conference – Virtual Event on April 20
- Health News: Cases and Hospitalization Rates are Flattening Out After Many Weeks of Significant Improvement
- Industry News and Important Events for Operators: Ohio Senate Approves $125 Million for Restaurants, Bar and Hotels; Bills Now go to the Senate
- Gov. DeWine Urging Lawmakers Not to Override Veto on Bill Limiting COVID Power
- Cincinnati Local Restaurant Alliance Set for March 30
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ORA Battled for Our Industry During the Year-Long Pandemic
and Continues to Press for Resources and Support
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In a Year of Loss, the Ohio Restaurant Association Supported Local Restaurants with Wins Large and Small - the ORA Continues to Fight for Resources Needed to Rebuild the Industry in 2021 and Beyond
One year into the pandemic, the ORA is commemorating the significant accomplishments both local and national that, in the face of enormous loss, supported Ohio’s restaurant industry and built a foundation for rebuilding in 2021 and beyond. The accomplishments of the last year have been both large and small, providing access to a myriad of resources that restaurants of all types have used to survive and on which they can continue to rely for recovery.
“Restaurants are the cornerstone of every community, which is why the pandemic’s damage has been so personally felt across Ohio,” said John Barker, President & CEO of the ORA. “We were committed to standing next to local restaurants through this crisis. We worked closely with our partners at the National Restaurant Association, our Board of Directors and industry leaders to advocate with elected officials for relief programs, grants and other support. Our collective, relentless efforts helped secure a variety of support for every Ohio restaurant.”
The ORA and the National Restaurant Association united the industry to be the voice of every restaurant in addressing its many needs at all levels of government. Together, we distributed training information, created operating guidance, communicated safety efforts to customers, and supported industry workers during the hardest days of the pandemic with advocacy for unemployment and a restaurant employee relief fund.
We also helped secure the Paycheck Protection Program, Flexibility Act, Economic Injury Disaster Loans and Employee Retention Tax Credits at the federal level, plus dozens of wins at the state and local levels. READ MORE.
The ORA is the ONLY state trade association
advocating full time for the foodservice industry.
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ORA Business Impact Poll: Sales are Improving
and Operator Confidence is Growing
as We Move Towards Summer
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The Ohio Restaurant Association has conducted a Business Impact poll since March 2020 to determine the ongoing health of restaurants across the state. The latest poll was conducted from March 4-9 and references information from the weeks of February 22 – March 8, 2021.
KEY STATISTICAL TAKEAWAYS:
Sales are Gaining Ground on 2019
As we have crossed the one-year mark since the beginning of dine-in restrictions, the ORA switched to asking about sales comparisons to 2019 to get greater understanding of the pressure restaurants continue to be facing. The good news is that same-store sales at reporting restaurants improved slightly from previous weeks. About one-third (36%) of restaurants are now reporting sales down more than 20%, which is the lowest percent of operators reporting such negative numbers in many months. We are also encouraged that 38% of restaurants are reporting positive sales. This improving performance is aligned with data we are seeing from Technomic, BlackBox Intelligence (see below) and Open Table.
- 3% of restaurants are seeing their year-over-year sales declining by more than 70%
- 7% of restaurants are seeing their year-over-year sales declining by 50-70%
- 26% of restaurants are seeing their year-over-year sales declining by 20-50%
- 16% of restaurants are seeing their year-over-year sales declining by 5-20%
- 4% of restaurants are seeing their year-over-year sales declining by 0 – 5%
- 5% of restaurants are seeing their year-over-year sales flat
- 10% of restaurants are seeing their year-over-year sales increasing by 0-5%
- 16% of restaurants are seeing their year-over-year sales increasing by 5-20%
- 12% of restaurants are seeing their year-over-year sales increasing by 20-50%
Restaurants’ Operational Confidence Continues to Grow
71% of restaurants believe if they continue to operate at their current capacity, they can stay open for nine months or more with 40% saying they can operate indefinitely. 13% of restaurants believe they will have to close within nine months, 9% say they have six months left and 8% say if things continue as they are, they will close within three months. There are no restaurants reporting they will need to close within the month.
More Restaurants are Hopeful They Will be Able to Break Even in 2021.
46% of respondents anticipate breaking even in 2021. We are seeing measurable growth in this number as the year moves forward.
Most Restaurant Owners will Encourage, but not Require Employee Vaccinations
48% of respondents stated that while they would not require the COVID-19 vaccine, they would strongly encourage and may offer incentives to employees to get vaccinated when their turn comes. 49% said that they would not require the vaccine and 3% said that they would require employees to get vaccinated.
- The ORA is trying to set a good example for our industry by offering employees 3 hours of paid time off to get each of their vaccine shots and an additional day of PTO for showing their vaccination card to HR.
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The ORA is a member of The Coalition to Stop the Spread of COVID-19, which is calling on employers to mobilize the most effective champions in fighting the coronavirus – their employees. At work, in the home and in their communities, it starts with individuals. Read more – https://stopthespreadcoalition.com/
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Restaurateurs are Considering Outdoor Dining for Spring
Many municipalities have extended their programs for expanded Outdoor Dining and Patio Seating through the end of 2021. 37% of respondents have indicated that they will be taking advantage of these programs. 58% will not. In many instances, restaurants who are not taking advantage of the program do not fit the criteria or have the facilities for expanded outdoor seating.
Restaurant Owners are Hopeful for Increased Crowds By Late Spring Or Early Summer
74% of respondents believe that they will see increased guest counts by the second quarter (late spring/early summer). The remaining 26% believe it will not be until the fall or early in 2022 before we’ll see numbers return to normal.
Restaurants Owners are Taking Advantage of Federal, State and Local Support.
96% of respondents have received at least one round of PPP funding. Another 59% have taken advantage of state and local grants. 34% of respondents have received and EIDL Loan and 27% will take advantage of the Employee Retention Tax Credit (up significantly as people file taxes for 2020).
The ORA is working with the National Restaurant Association to encourage Congress to extend the deadline for the 2nd round of the PPP (see below) and to reopen it to operators who were limited in access. We expect to hear more from the Small Business Administration (SBA) soon concerning the Restaurant Recovery Act, applications and the process.
See the Latest Blackbox Intelligence Industry Highlights:
- For the second consecutive week, ending March 16, restaurants experienced an encouraging improvement in year-over-year comp sales and traffic growth. It was the best week since mid-January.
- The week was also the third best for comp sales results since the beginning of the pandemic. It was the second bestsecond-best week in the pandemic era for comp traffic.
- The best performing sales and traffic results in the pandemic era based on the 2-year growth rate was the last week of 2020 and the first two of 2021; the first weeks of stimulus checks sent to consumers. This suggests the upcoming third round of stimulus will supply another needed boost for the industry accelerating its road to recovery.
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READ MORE.
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Federal Update: $28.6 Billion Additional Lifeline
Coming for Restaurants and Bars
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Restaurants & Bars Catch a Lifeline from Latest Federal Stimulus
'We Need This Bridge': Ohio Restaurants Eager for
More Than $28B in Aid on The Way
Tucked into the $1.9 trillion coronavirus pandemic relief bill signed into law last week is more than $28 billion for independent restaurants.
- Ohio restaurateurs cheered the carve-out, hoping the American Rescue Plan will correct some of the problems with previous rounds of aid — and keep them open until COVID-19 becomes only a memory. This money is aimed at small restaurants and restaurant companies. Publicly traded companies and chains with more than 20 locations aren't eligible (the ORA will be advocating for an amendment to the 20-location limit).
- Roughly $5 billion is earmarked for restaurants with less than $500,000 in annual revenue, and minority-owned businesses are prioritized for initial grants.
- Restaurants, food stands, food trucks, caterers and bars can apply, when the Small Business Administration provides more details and an application portal.
- Applicants can use the money on a variety of expenses, including payroll, rent or mortgage payments, personal protective equipment, utilities, debt payments, even expanded outdoor seating.
The Ohio Restaurant Association, along with the National Restaurant Association, lobbied for restaurant-focused aid, arguing the economic downturn hit the service industry especially hard thanks to lockdowns and customers unwilling to risk infection. The Ohio organization praised the carve-out in the latest relief bill. Nationwide, restaurants lost roughly $255 billion in revenue since March 2020 when much of the economy was shuttered, and around 20% of restaurants closed, according to figures from the National Restaurant Association. “This package will help operators turn the corner towards recovery,”
Ohio Restaurant Association President and CEO John Barker said.
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“I think it’s going to really stabilize a lot of places that are maybe on the fringe or not prepared for the future as much,” said Chef Rocco Whalen, who owns Fahrenheit Cleveland and also operates several food stands and a food truck.
$28.6 Billion in Federal Funding Expected to Help Miami Valley Restaurants
“28.6 billion dollars for our industry is not a lot, but it is a substantial first step really to help us dig ourselves out of this,” Wheat Penny Co-owner and Chef Liz Valenti said. Valenti said the money the government has provided throughout the pandemic has been essential to keeping restaurants afloat.
- “The PPP as well as this fund will help to bridge that gap, but we’ve lost many amazing restaurants in Dayton and throughout the midwestMidwest and across the country because of COVID, so it’s important that independent restaurants have access to these funds,” Valenti said. READ MORE.
Answering Questions: American Rescue Plan & Restaurant Revitalization Fund
Two attorneys break down important details of economic relief plan and the industry bail out that targets small restaurants hit hardest by COVID-19. READ MORE.
The House Voted to Extend PPP For Two Months. Here’s What Happens Next
Small businesses got some good news last week, when the House of Representatives voted to extend the Paycheck Protection Program for two months. The bill, the PPP Extension Act of 2021, passed the House on a 415-3 vote. It would extend the program to May 31, instead of the current date of March 31, and give the Small Business Administration an additional 30 days to process loans.
- Next, the bill goes to the Senate, where it is expected to be approved. Majority Leader Charles Schumer, D-N.Y., said that Democrats want to pass the measure as quickly as possible.
- The push to extend PPP also comes after the passage of the $1.9 trillion American Rescue Plan, which President Biden signed into law March 11. The bill includes $7 billion to expand PPP along with other provisions aiding small businesses.
- This year through March 14, the SBA had approved more than 2.7 million loans worth about $181 billion. When the program reopened in January, it had $284 billion in funding.
SBA Extends Deferment for EIDL Payments
- Restaurants that received a COVID-19 Economic Injury Disaster Loan (EIDL) do not have to start making payments on the loan until 2022. The deferral timing depends on the calendar year when the disaster loan was made. This latest deferral means that borrowers will not have to resume a regular payment schedule until the payment before March 31, 2022. However, borrowers may voluntarily continue to make payments during the deferment since interest continues to accrue on the outstanding loan balance during this period.
- The U.S. Small Business Administration announced extended deferment periods for all disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until 2022.
- All SBA disaster loans made in calendar year 2020, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 24-months from the date of the note.
- All SBA disaster loans made in calendar year 2021, including COVID-19 EIDL, will have a first payment due date extended from 12-months to 18-months from the date of the note.
- SBA Extends Deferment Period for all COVID-19 EIDL and Other Disaster Loans until 2022
Government Aid Has Yet to Reach Venues
Congress Passed a COVID-19 relief bill in December that included $15 billion in grants for independent music venues, promoters and other performing arts organizations forced to shut down during the pandemic, but more than 10 weeks later, the Small Business Administration hasn't even started accepting applications.
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Register for the 2021 Public Affairs Conference – Virtual Event on April 20 |
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Register today for the 2021 Public Affairs Virtual Conference on April 20
and join ORA leadership at this important event.
- For 35 years, the National Restaurant Association’s Public Affairs Conference has brought together the leaders of our industry for a dialogue with national policymakers and thought-leadersthought leaders on our public policy priorities. Decisions made in the Capitol have never mattered more to our industry.
- Just one year ago today, we wrapped up our 2020 conference in Washington, DC. A week later, the restaurant industry saw a national wave of indoor dining closures. It prompted a devastating year for restaurant owners, employees, and local communities.
- The NRA + ORA have secured wins from lawmakers, but our road to recovery remains long. From relief to reopening guidance, we need leadership from elected officials, and your voice is critical.
- On April 20, you’ll hear virtually – via zoom – from political analysts, industry leaders, and lawmakers on key issues impacting the restaurant industry. If you’ve never attended the conference in the past, this year’s virtual setting is a great way to get involved for the first time.
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Watch Our Video Update and Register for the Public Affairs Conference!
Last week was a busy one in Washington, and this week’s 90-Second Update brings you fully up to speed. Learn the latest on timing of the Restaurant Revitalization Fund, possible changes in the Paycheck Protection Program, and the latest on immigration legislation in Congress. |
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Our annual Public Affairs Conference is less than a month away – we are delighted to announce that Rahm Emanuel (Former Mayor of Chicago, as well as Chief of Staff to President Barack Obama) will be our keynote speaker. We are assembling a great list of speakers and presenters for a key moment in our industry’s recovery. Register to join us on April 20th. |
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Health News: Cases and Hospitalization Rates
are Flattening Out After Many Weeks of Significant Improvement
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As Ohio closes in on at least partial vaccinations for 30% of the state’s adult population, another not so encouraging trend has begun to develop. The sharp drops in cases and hospitalizations through January and February have nearly flattened out in mid-March.
- The seven-day average for coronavirus patients in Ohio hospitals is about unchanged in the last week, and the seven-day average for newly reported cases is up slightly from a week ago. Both important measures of coronavirus trends in Ohio do still represent stark improvements from early- and mid-winter, but they no longer are improving at rapid paces.
- Hospital coronavirus patient count averaged 888 over the seven days through Thursday, nearly unchanged from 895 a week ago, but much better than the averages of 1,633 on Feb. 18, 3,817 on Jan. 18 and 5,166 on Dec. 18.
- The average number of cases reported daily over the last week has been 1,550, in comparison to 1,493 a week ago, 2,279 a month ago on Feb. 18, 6,587 two months ago on Jan. 18, and 9,093 on Dec. 18.
- Yet it’s too early to know for sure what extent the recent surge of vaccinations may have on limiting cases. Vaccinations just this month have been started on 824,785 people, the Ohio Department of Health reports.
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If vaccine providers across Ohio cannot fill Covid-19 vaccine slots, the state of Ohio has now authorized them to fill those spots with people 16 years and older, Gov. Mike DeWine said Monday.
- "While there are many placeplaces where there is great demand, more demand than there are shots available ... we do have some places in the state where that's not true," DeWine said. "What we don't want is slots not filled."
- Everyone who is between the age of 16 and 39 is eligible to receive a shot starting on March 29. People 40 and above and those with certain chronic conditions are eligible now.
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U.S. Covid-19 Vaccine Manufacturing is Racing Ahead
- The monthly output for the three authorized vaccines is expected to reach 132 million doses for March, nearly triple the 48 million in February. The global supply of Covid-19 vaccines also is increasing, though access to supplies and the pace of vaccinations vary widely by country.
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AstraZeneca said its vaccine was shown to be safe and 79% effective in preventing symptomatic disease in U.S. clinical trials involving more than 32,000 people. The U.K. drugmakerdrug maker said it would continue to analyze the data and prepare to request emergency-use authorization in the U.S. in coming weeks.
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Industry News and Important Events for Operators:
Ohio Senate Approves $125 Million for Restaurants,
Bar and Hotels
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Ohio Senate Approves Nearly $900M in Pandemic Relief Funds: $125 Million for Restaurants, Bars and Hotels
- If approved by the House and signed by Gov. DeWine, the Ohio Legislature will send $125 million to help bars, restaurants and hotels continue to recover from the pandemic. Another $300 million will go to help indoor entertainment venues, newly opened businesses, businesses that haven’t yet received aid, veteransveterans’ homes, child carechildcare providers and fairs.
- “It is imperative that we get these needed dollars into the hands of those desperate to financially recover from this pandemic,” said Sen. Mark Romanchuk, R-Ontario, sponsor of the bill to provide bar and restaurant funding. “I am proud to join this effort with Senator [Steve] Huffman, [R-Tipp City], and my Senate colleagues to do this as quickly as possible for those who have suffered due to the extended closures of their businesses.”
- The pandemic funding bills now head to the House.
Gov. Mike DeWine Urges Ohio Lawmakers Not to Override Promised Veto of Bill Limiting Coronavirus Power
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The five-page letter, sent to all 132 state lawmakers, shows how concerned DeWine is about his fellow Republicans in the legislature overriding his veto of Senate Bill 22, as well as the effects of the bill itself. It’s the first time DeWine has written lawmakers in this way ahead of a promised veto. READ MORE.
NPR: Some in The Food Industry Want to Stay With a Subminimum Wage (Tip Credit)
Amazon Supporting $15 Minimum Wage; Poll Shows 35% of Americans Support it as a Priority
Amazon funds a pro-$15 wage survey with results claiming a majority of the public support a $15 minimum wage. The survey covers 5 states total, but only 2 with minimum wages lower than $10 (one was Florida, where voters just approved a $15 wage). A Morning Consult survey commissioned by the Employment Policies Institute counters this claim - while 70% of Americans want Congress focused on Covid relief, only 35% believe raising the minimum wage to $15 is a priority.
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While1 in 6 restaurants has closed, thousands of hospitality hopefuls are pouring into the business.
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COVID-19 Operating Guidance Update
The updated COVID-19 Operating Guidance, (formerly Restaurant Reopening Guidance) builds on the original document and incorporates the latest information and best practices from the:
- Centers for Disease Control and Prevention (CDC)
- U.S. Food & Drug Administration (FDA)
- Environmental Protection Agency (EPA)
- Occupational Safety and Health Administration (OSHA)
- American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE)
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You can count on the ORA to help you find the PPE you need for indoor and outdoor dining.
We regularaly update this portal.
see what vendors have to offer.
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Support local restaurants. Take Your Bubble out to Eat! |
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Then, now & always.
Since 1920, the ORA has served as a tireless advocate for the restaurant industry, promoting ideas and legislation that help protect you, your business and people, while ensuring you’re up-to-date in every area.
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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 here or the logo to go there now.
CONNECT is the place for ORA members to converse and share ideas, stories and support each other. Follow and tag the ORA on our other social media channels to share business hours, menus and specials for public viewing.
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Follow us and share updates with your fellow restaurateurs.
We’re all in this together.
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For additional questions, please contact the following ORA staff:
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 MEDIA REQUESTS:
HOMA MOHEIMANI
Manager of Media & Communications
614.315.0572
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