Restaurants Step Up Their Takeout Game
A Zagat survey of 7,000 people found that only one-third of respondents plan to dine at restaurants the week they reopen, and 20% plan on waiting three months. As restaurants gradually reopen, takeout and delivery have become essential components of most business models. According to restaurant market research firm NPD, delivery sales this April were 115% higher than last year. As a result, restaurant supply company US Foods saw a 25% jump in sales for its takeout containers, especially eco-friendly containers, specialty vented containers for fried foods, and containers for cakes and desserts. Sales of tamper-evident labels are also up 160% as restaurateurs invest in better packaging to gain consumer trust.
In Chicago, DineAmic Hospitality’s co-owner Luke Stoioff says the company’s restaurants worked hard to “make our delivery food look as beautiful as our dine-in food,” using specialty plastic tableware and packaging as well as other refinements. Some restaurateurs are even investing in custom packaging to help deliver the in-restaurant experience at home. French chef Daniel Boulud, the owner of Michelin-starred restaurant Daniel in New York thinks the Michelin Guide will soon institute a “delivery” classification to grade that service much like other restaurant services. .
America’s Michelin 3-Star Restaurants Find New Ways To Serve
While closing dining rooms due to the coronavirus, Michelin 3-star restaurants around the country pivoted their operations to continue providing high-quality meals through takeout and delivery and by feeding medical employees and others on the frontlines of the pandemic. Chef Dominique Crenn began brainstorming right away when her Michelin 3-starred restaurant, Atelier Crenn, was ordered to close in March. Crenn and a skeleton crew of around 20 employees have been making hundreds of meals a day for hospital workers, firefighters, and even a domestic violence shelter close by. She plans to continue offering some of these services after the pandemic subsides.
Alinea in Chicago, owned by chef Grant Achatz and Nick Kokonas, would normally welcome guests with a $365, 18-course tasting menu. Now the 3-star Michelin restaurant is offering six-course to-go feasts for about $50. The move has been extremely successful and has helped re-employ the entire restaurant staff with 80% of their previous pay and benefits. Other restaurants like Eleven Madison Park have begun feeding frontline workers only, and the acclaimed NYC restaurant now serves 3,000 meals a day to those in need.
Food & Wine Announces Best New Restaurants 2020
Though the coronavirus pandemic has thrown the restaurant industry into disarray, Food & Wine magazine restaurant editor Khushbu Shah says, “A pandemic doesn’t cancel the work that these remarkable chefs and restaurant owners have done over the past year.” Shah completed most of the research for this year’s list just before lockdowns went into effect. The magazine’s ten Best New Restaurants of 2020 include a wide variety of venues from casual to fine dining, inexpensive to luxurious, and food trucks to white tablecloth restaurants. “The idea that a restaurant had to be a place with four walls, a front door, and daily hours felt limiting,” says Shah. “To ignore the creativity and sheer flavor that comes out of food stands, pop-ups, and trucks felt like a giant missed opportunity.” Congratulations to Automatic Seafood and Oysters (Birmingham), Bon Temps (LA), El Ruso (LA), Gado Gado (Portland, OR), Golden Diner (NYC), Molly’s Rise and Shine (New Orleans), Kalaya (Philadelphia), Nixta Taqueria (Austin), Thattu (Chicago), and Thamee (DC).
Top Chef Champ Defends Artful Fusion Cuisine
Last week, this season’s Top Chef All-Stars television show concluded, and Bay Area chef Melissa King emerged victorious. Up against chefs Bryan Voltaggio and Stephanie Cmar, King was tasked with serving a group of culinary legends in Tuscany, Italy. Her winning dishes of char siu glazed octopus with fennel, squash agnolotti with Szechuan chili oil, grilled squab with persimmon porcini and fermented black bean, and Hong Kong milk tea tiramisu successfully honored Italy’s culinary traditions while infusing them with the food and flavors of her Chinese family. Her final tiramisu dish brought eighth-generation Italian butcher Dario Cecchini to tears. “It respected the traditions of Italy,” said Cecchini. “Melissa made an interpretation of one of our traditions and she made it from the heart.” Fusion food can be tricky both culturally and on the palate. “I do a lot of research,” said King. “I travel to these countries, I eat the food of the locals as much as I can. I tried to keep the authenticity of the flavors and the tradition that is behind [it] in all of these cultures, but hybrid[ize] it in a way that’s very subtly and tastefully done.”
Bipartisan Bill Proposes $120 Billion In Relief For Independent Restaurants
Last week, Senator Roger Wicker (R-Miss.) and Representative Earl Blumenauer (D-Ore.) presented new legislation to begin a $120 billon pandemic relief fund for independent food service and drinking establishments. The Real Economic Support that Acknowledges Unique Restaurant Assistance Needed to Survive Act (the Restaurant Act) aims to offer restaurants grants so long as the ownership companies are not publicly traded and make $1.5 million or less in revenue under normal circumstances. Funds provided by the bill are in addition to any loans are grants received through the Paycheck Protection Program (PPP), and restaurants may use the grant for payroll, benefits, mortgage, rent, protective equipment, food, and other expenses.
On a call with reporters, Blumenauer said that independent restaurant revenue is down 51% from last year as a result of COVID-19 and that independent restaurants face unique challenges not faced by corporate-owned chain restaurants. Since April, the Independent Restaurant Coalition (IRC) has been pushing Congress to create this $120 billion stabilization fund, even though the National Restaurant Association and the International Franchise Association (IFA) criticized it for not including franchisees and small chain restaurants. The latest bipartisan version of the Restaurant Act does include franchisees but only those with 20 locations or less.
Food Halls Plan Their Comeback
Massive food halls and public markets rely heavily on close proximity vending, high customer traffic, and communal tables. As they plan reopening amid the pandemic, safety is now the top priority. “We only have one shot at opening and we have to make sure it’s the right time,” says Didier Souillat, CEO of the six Time Out Markets in Lisbon, Chicago, Montreal, Boston, New York, and Miami. Souillat says the Lisbon and Montreal locations will likely open in late July or early August with U.S. halls to follow. Upon entry to reopened Time Out Markets, customers will be welcomed by an ambassador who will explain new health and safety rules and procedures. Signs urging customers to keep six feet apart will be posted throughout the buildings, and technology will track the hall’s total capacity based on foot traffic, sending alerts to general managers when capacity is within 10% of the 50% limit.
In Santa Monica, California, the Social Eats food hall never fully closed but immediately revamped its business and continued modifying it, at least six times, according to founder John Kolaski. “One of our first steps was implementing a contactless solution so guests can order ahead for takeout and delivery,” says Kolaski. The new online ordering platform at Social Eats consolidates all nine of the food hall’s dining concepts into one point of sale system so customers can combine items from all or some of the vendors into one to-go bag. Similarly, food halls around the country have revamped their services in preparation for safe and efficient service upon reopening.
Chicago’s Acclaimed Fat Rice Restaurant Closes Amid Mistreatment Allegations
Since March, Chicago restaurant Fat Rice has been closed for dine-in service but has continued operating as the grocery store and meal kit service, Super Fat Rice Mart. After recently posting support for the Black Lives Matter movement, owners Abe Conlon and Adrienne Lo have now closed Fat Rice altogether. Upon seeing the posts of support, former Fat Rice employees called out Conlon, sharing multiple stories of mistreatment. Some former employees tossed their Fat Rice shirts in a pile in front of the restaurant, while others burned their uniforms.
The reckoning also reignited a long-running debate over the restaurant’s cultural appropriation of Macau cuisine and Conlon’s attitude toward other cultures. The chef admitted to having an anger problem but denied claims about physical altercations. Conlon apologized for his behavior both in the kitchen and in the fight against systemic racism in the U.S., saying, “I have participated in and upheld a system that needs to fall.” He went on to say, “If Fat Rice needs to fall along with that system, I am ready for that.”
Restaurateurs Change Business Models For Successful Reopening
As restaurants across the U.S. begin to reopen, restaurateurs are switching business models to stay alive as restrictions such as capacity limitations impact profitability. In Washington, D.C., Christianne Ricchi of Ristorante i Ricchi launched the I Ricchi Food Club with a four-course Tuscan dinner to be ordered ahead and picked up at the restaurant. Customers who sign up for a four week subscription get a 20% discount, and Ricchi includes a candle, optional wine pairing, and tasting notes to help recreate the restaurant experience at home.
Greg Baxtrom decided to close his Brooklyn restaurant Olmsted until there is a coronavirus vaccine, turning the main dining room into a food bank and the private dining room into the Olmsted Trading Post. “We sell about 200 items,” says Baxtrom, “many of which people can’t get at their regular grocery store, plus prepared foods from our menu.” The chef is adding delivery and expanding the grocery operation to keep it going after Olmsted reopens. Baltimore’s Alma Cocina Latina also went through a permanent transformation. After partnering with Mera Kitchen Collective and Jose Andres’ World Central Kitchen, chef-owner Irena Stein converted the Venezuelan restaurant into a relief kitchen. Stein serves 3,000 meals a week, and “I am going to continue the relief kitchen going forward,” she says, “operating it during the day to feed communities in need, and opening as Alma Cocina Latina only in the evening.”
In San Francisco, Peter Hemsley decided to completely remodel his art gallery restaurant Palette, separating the bar from the dining room and eliminating a retail space in favor of online sales. “Going forward, I see the gallery gaining a reputation as a place to hang out with a drink and bar food,” says Hemsley.
Starbucks Closes 400 Stores, Amps Up Contactless Transactions
Over the next 18 months, Starbucks plans to close 400 locations and ramp up its contactless services, including curbside pickup, drive-thru, and mobile ordering. The move comes as COVID-19 influences consumer behavior and buying decisions. “As we navigate through the COVID-19 crisis, we are accelerating our store transformation plans to address the realities of the current situation, while still providing a safe, familiar and convenient experience for our customers,” said Starbucks CEO Kevin Johnson. .
Eat Food Takeaway Acquires Grubhub for $7.3 Billion
Just Eat Takeaway.com and Grubhub are combining to create the largest restaurant delivery company outside of China. The $7.3 billion deal meant that Amsterdam-based Just Eat Takeaway.com snatched Grubhub away from Uber after talks of teaming Uber Eats with Grubhub. The companies expect to close the deal in the first quarter of 2021 with the new company headquartered in Amsterdam in addition to U.S. headquarters in Chicago. In 2019, Just Eat Takeaway.com and Grubhub processed 593 million restaurant orders, gathering about 70 million users worldwide.
Just Eat Takeaway.com stated they will get 100% of Grubhub’s shares at an implied value of $75.15 per share. Last Wednesday, Grubhub shares closed at $59.05. If Uber had bought Grubhub, the companies would have had control over most of the U.S. food delivery business, causing regulatory issues, whereas Just Eat Takeaway.com does not operate in the U.S., easing restrictions.
