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September 29, 2021 • Issue 293 |
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Winner of CNBC's "Restaurant Startup" Brings Intimate Dining Experience to Charleston, S.C.
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Charleston, S.C. — Chef Anthony Marini’s new restaurant, “The Pass,” creates an atmosphere like no other. Living a double-life as a unique sandwich shop by day, the 700-square-foot restaurant boasts just one table and transforms into a speakeasy-style dinner at night. Only one reservation is made each night, allowing 6-10 people to have an intimate dining experience.
Read more.
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Trademark Completes Initial Renovation of Zona Rosa Mixed-Use Center in Kansas City
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Kansas City, Mo. — Trademark Property Company, mixed-use investor, developer and operator, completed the initial renovations of Zona Rosa, a 1.1 million-square-foot mixed-use town center located in Kansas City’s Northland. Read more.
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Chicken Salad Chick Plans More Than 50 New Locations Across the Midwest by 2025
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Lee’s Summit, Mo. — Chicken Salad Chick has mapped out development goals to add 50 locations to the pipeline for the Midwest in the next 4 years via strategic franchise partnerships. These development goals build on the tremendous growth Chicken Salad Chick has experienced this year, with 17 signed agreements year-to-date and 40 locations projected to open by year-end. In addition to this impressive development, Chicken Salad Chick is reporting a +17.1% increase over 2019.
Read more.
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>> COVER STORY: Dog Days As the leader in dog daycare, Dogtopia is on track to open 50 new locations this year through robust retail franchising and a business model that focuses on overall wellness — for the dogs and their humans. Interview by Katie Lee |
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Have you read the August issue? |
| >> “TECH”-TONIC SHIFT The new frontier for restaurants in the back of the house. By Daniel Estrada
>> ROUTINE ROOF MAINTENANCE Did you know the Number 1 cause of premature roof failure is lack of regular roof inspections?
By Michelle Grojean
>> FROM KITCHEN TO CUSTOMER Keeping restaurants connected to enhance the customer experience. By Eric Symon
>> THE ENEMY WITHIN What is eating at your profits? (It may be smaller than you think.) By Alex Blahnik
>> REINVENTING RETAIL & RESTAURANTS As a result of the pandemic, retailers and restaurants are getting a new look. By James “Gino” Ginopoulos
>> PROTECT PEOPLE, NOT PESTS Storm recovery tips to keep people safe and prevent pest infestations. By Dr. Nancy Troyano
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Logan's Roadhouse Unveils New Restaurant Design
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Houston — Logan’s Roadhouse is celebrating the grand reopening of its redesigned Houston restaurant on September 23, 2021. Earlier this year, SPB Hospitality, Logan’s parent company, relocated its headquarters to Houston, and now The Real American Roadhouse is unveiling its newly revamped design.
Read more.
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Leading Sports Retailer Lids Promotes SVP to President
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Indianapolis — Leading sports retailer Lids has promoted Britten Maughan to president. He has been a key factor in Lids’ continued growth since he joined the company in 2019. In his role as a senior vice president, marketing and partnerships, Maughan has overseen all aspects of product, marketing, merchandising, partnerships and distribution for the retailer. Most notably, he implemented an improved business process with the introduction of data analytics to drive merchandising and allocation decision making. He has also run point on improving product assortment.
Read more.
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BBQ Holdings Hires New VP of Franchise Sales and Real Estate
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Minnetonka, Minn. — BBQ Holdings, Inc., the multi-brand restaurant company behind concepts such as Famous Dave’s and Granite City Food and Brewery, and the newly acquired Village Inn and Bakers Square, has hired Manny Packing as the brand’s new vice president of franchise sales and real estate.
Read more.
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The Container Store Joins U.S. EPA Green Power Partnership
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Coppell, Texas — The Container Store, leading specialty retailer of storage and organization solutions and custom closets, has joined the U.S. Environmental Protection Agency’s Green Power Partnership. The Container Store is using more than 57 million kilowatt-hours (kWh) of green power annually, which is enough green power to meet 100% of the organization’s electricity use. By choosing green power, The Container Store is helping lead the transition to a cleaner energy future. Read more.
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Silver Diner is First Restaurant Group in Mid-Atlantic to Offer On-Site Vaccination
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Rockville, Md. — Silver Diner is taking the lead in ensuring that its employees are vaccinated and offering a convenient way for its guests to get vaccinated. The restaurant is partnering with Kaiser, the company’s primary insurance carrier, and the Fairfax County Department of Health, and bringing a mobile van to Silver Diner locations throughout the Washington, D.C., region and Baltimore. Read more.
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Top Story |
Legal Considerations for Restaurants Following the Biden Vaccine Mandate
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— By Louis J. Terminello —
Like broader society, the restaurant industry must contend with the 3-way collision of economic reality, medical ethics and societal health concerns. More specifically, on September 9, 2021, President Biden issued an executive order requiring COVID-19 vaccinations for federal employees. As part of the order, the U.S. Department of Labor was instructed to require all employers with more than 100 employees to mandate vaccinations or require its employees to undergo weekly COVID-19 testing.
The restaurant industry has been forced to contend with innumerable, and often times confusing, municipal and state government executive orders. The federal order is but another mandate requiring the troubled industry to adapt once more to societal realities. First, the order was issued in response to the slow pace of vaccinations which helped give rise to the highly contagious Delta variant. The vaccine mandate is designed to slow the spread of the variant and all its troubling consequences.
For mom-and-pop restaurants, the mandate is not applicable. Of course, they still must contend with the economic impact of diners who prefer to dine at restaurants with fully vaccinated staff or perhaps the oddly converse:, diners who will not eat at restaurants requiring staff (and/or guest) vaccinations. The conflict of public opinion has serious economic consequences for restaurants of all sizes.
For restaurants with more than 100 employees, such as chain or multiple brand/unit establishments, the vaccine requirement is a mandate and could be costly and present certain legal challenges. As of this writing vaccines and testing are still available at no cost. However, the vaccine and testing mandate may lead to the demise of the no-cost availability of both — giving rise to the question: who will pay for either?, Tthe employer or employee?. These are but two issues that make employment lawsuits inevitable.
Another important issue is the labor shortage faced by many restaurants. The mandate will likely cause employees who are reluctant to get vaccinated or be tested to exit the restaurant industry permanently — further exacerbating labor shortages.
An additional area of concern is enforcement. The mandate begs the question: what agency will enforce its requirements and is it even operationally possible to enforce the mandate? Moreover, if it’s possible to enforce, what will be the legal consequences and penalties for noncompliance? None of these issues hass been addressed yet and will likely cause additional confusion for restaurants covered by the mandate.
It should be noted that the National Restaurant Association (NRA) has come out in favor of the executive order. It would be helpful at this juncture if the NRA or a similarly situated industry group would promulgate best practice guidelines around the mandate.
— Louis J. Terminello is partner and chair of the hospitality, alcohol and leisure industry group at Greenspoon Marder. |
Vendor News |
Bed Bath & Beyond, DoorDash Expand Partnership for Nationwide On-Demand Delivery
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Union, N.J. — Bed Bath & Beyond® has formed a partnership with DoorDash, the nation’s leading last-mile logistics platform, to offer consumers on-demand delivery of essential homeware products and items from more than 700 Bed Bath & Beyond locations and nearly 120 buybuy BABY® locations nationwide. With this partnership, Bed Bath & Beyond becomes the first home retailer and buybuy BABY the first baby goods retailer available on the DoorDash marketplace app and website. Read more.
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More Industry News |
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Upcoming Events |
| BOMA 2021 International Conference & Expo October 6-9, 2021 • Boston
InterFace Las Vegas Retail 2021
October 14, 2021
Four Seasons • Las Vegas
IFMA World Workplace October 26-28, 2021
Kissimmee, Fla. • Gaylord Palms Resort
LIGHTFAIR 2021 October 25-29, 2021 • New York City
ISSA Show North America 2021 November 15-18, 2021 • Las Vegas
ICSC + CenterBuild November 30-December 3, 2021
JW Marriott Phoenix Desert Ridge Resort & Spa • Phoenix
NRF 2022 / Retail’s BIG Show January 16-18, 2022
Jacob K. Javits Convention Center • New York City
The NAFEM Show February 1-3, 2023
Orlando, Fla. • Orange County Convention Center |
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From the Magazine |
Post-COVID Capital
By Carty Davis
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The evolving restaurant facility, changing priorities in CAPEX and capital through and post-COVID.
As regulations and mandates end, owners and operators continue to adapt to a post-COVID society. Declining COVID cases and vaccine availability on a large scale show hints of the virus fading into the past, which is encouraging to business owners and the overall economy. While COVID may be on the decline, consumer behaviors, preferences and the distribution systems that support these evolving consumer tastes are here to stay.
The quick-service restaurant segment has outperformed its counterparts in the casual, family or fine dining segments throughout COVID. Drive-thru capabilities, third-party delivery and mobile order applications were already in place, allowing operators to be nimble to regulation changes and take advantage of new customers seeking dining options. Restaurants in the casual and family dining segments that have seen success during the pandemic have been resilient by offering off-premise alternatives to counter dining restrictions. The brands that prospered were those that had a well-defined and user-friendly digital platform combined with efficient distribution options.
Franchisees of national brands with the financial support of franchisors, suppliers and “most” lending partners have been better equipped to stay the course, in spite of the economic downturn over the last year. Now, franchise concepts that have maneuvered well through the uncertainty of COVID will begin to focus on evolving remodels, capital improvements and reengineered drive-thrus and other distribution upgrades. In the past, many restaurant concepts have focused on creating bright, clean attractive stores; however the next wave of changes will include capital intensive changes such as adding or enhancing drive-thrus, improvements to online ordering platforms, and pickup/delivery friendly stores for off-premises dining.
As government programs including PPP, EIDL and Main Street Lending provided much needed relief to owners and operators, these “safety nets” continue to help as many operators have received or are in the process of applying for PPP forgiveness. Owners and operators should now focus on managing capital structures and borrowing requirements. Just as brands and franchisees have experienced varying levels of success throughout COVID, performance has also been mixed among different lenders and other capital providers. With varying levels of performance among capital providers, borrowers and operators are presented with both challenges and opportunities.
In many cases, franchise owners have been able to delay remodels and capital investments. Depending on the concept, though, we anticipate increasing capital requirements and facility upgrades as brands and operators focus on refining their business model to meet the evolving demands of customers post-COVID.
In addition, as real estate markets change and new and different opportunities emerge from closed locations, credit demands will also increase and evolve. All these developments should be addressed with credit partners to gauge their interest in supporting franchisees’ capital needs and at what level. Owners should have a backup plan as most businesses are operating under unprecedented times as it relates to planning and budgeting and securing the necessary capital for anticipated increases in CAPEX requirements and the timing of the implementation.
Franchisees should prioritize finalizing and reviewing capital needs for existing operations, image and drive-thru upgrades, new development and conversion opportunities. In addition, acquisition-minded franchise operators will see various opportunities, including distressed and turnaround situations, market and geography driven options, and franchisor influenced deals. We are also seeing COVID change how certain owners and partners view the business. The timing may be ideal to explore a new capital structure to accommodate the changing dynamics of ownership and reinvestment levels. All these developments, constraints and opportunities necessitate a thorough review of your existing capital structure and potential alternatives. Capital partners should be able to support both short term plans for upgrades and new opportunities — whether it be new unit development or acquisitions. It is essential for franchisees to finalize their 2021 and 2022 capital plans before assessing lender and capital relationships.
Read the full article. |
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