Expect Half-Full Restaurants as US Economy Reopens Amid Coronavirus Shutdown

LOS ANGELES, CA — Areas across the US are embarking on phased-in, cautious returns to business but don’t expect restaurants  to be bustling as they likely are to host only half of their capacity from before the coronavirus pandemic.

Restaurants are to follow stringent safety measures limiting the number of patrons per table and keeping tables 6 feet apart, prompting expectations for a halving of patronage, according to a a CBRE report. Guests might be asked to wait in line or in their cars to avoid overcrowding.

Restaurateurs are drawing up reopening plans that mandate staff members wear gloves and masks and have their temperatures taken. They are to hold practice runs to make sure all safety measures are in place before opening. Restaurateurs also are to provide disposable menus, single-use plates and cutlery, and payment options that allow customers not to touch the card terminal. There also will be plexiglass or other barriers at hostess stands.

Many restaurants are to ease into reopening by first opening outdoor seating space on patios and sidewalks before opening indoors.

Governments and the National Restaurant Association’s ServSafe have put out restaurant reopening plans and guidelines for social distancing and other safety measures.

Even with these guidelines, it’s expected some restaurateurs will wait up to four weeks to reopen after local authorities give them the green light. They most likely will spend the extra time gauging consumer patters and the cautiousness levels of patrons as well as to fully implement best practices.

The initial reduction in capacity means a slower rebound of food and beverage businesses, a $2.5 trillion US industry that was among the hardest hit. The industry lost more than $50 billion in sales in April and restaurants accounted for 60% of the 16.8 million jobs lost from March 19 to April 9.

During the lockdown restaurants were limited to pickup and delivery but that could cover up to 20% of sales.

Some restaurants are not expected to reopen at all from the sales loss, mounting debt and uncertainty of loan issuance and forgiveness under the federal Paycheck Protection Program.

If closures continue for another month, 28% of small and independent restaurants say they most likely will end up closing permanently, according to a survey by the James Beard Foundation. Even if restrictions are slowly lifted, as they are in certain areas, a mere one out of five small restaurant owners say they can sustain their business until operations are fully back to normal.

This makes for an uncertain future, further exposing restaurant landlords if sales don’t climb up. Restaurants have sought rent deferral while they were closed and as they are reopening are seeking further assistance such as more rent restructuring, lease changes and permission to tweak their uses like their menus, according to the CBRE report.

One thing landlords can easily do is to give access to more storage space for delivery containers and cleaning supplies as well as for curbside pickup.