Latest Industry News Regarding COVID-19 – Week of March 30th

In our continued effort to help our customers during the COVID-19 crisis, here is immediate information regarding the recently passed federal relief package, CARES Act, which includes the Paycheck Protection Program (PPP) for small businesses that could provide some cash relief to restaurants in the form of a loan with very favorable terms. The PPP is designed to provide loans to address payroll, mortgage interest, rent, and utility costs. The PPP allows businesses to obtain a loan of up to $10 million to cover up to eight weeks of costs that will be forgiven if the businesses’ headcounts remain the same. Forgiveness will be reduced proportionally by any headcount or pay reduction compared to the prior year. Separate from the PPP, there are also tax deferred benefits and employee retention credits. Businesses who do not participate in the PPP can defer social security employer payroll tax payments to 2021 and 2022. There is also an employee retention credit equal to 50% of wages in the year starting from 3/13/2020 up to a maximum of $10,000 of wages (or $5,000 total credit) that restaurants may be eligible for. Also, the U.S. Small Business Administration continues to offer Economic Injury Disaster Loans and Loan Advance that is also an option for restaurants.

Please note the comments above are based on the information available at this time. Given the CARES Act was just enacted and the government agencies are in the process of developing application processes, many details are subject to change. Restaurants should seek advice for which strategy is best for their unique situation from their local financial institution, tax, accounting and CPA firms.

Compeat is investigating the application requirements for each to see if we can automate the necessary reports within our products to make the application process a little easier for our customers. As details are finalized, we will communicate immediately to you.

In the meantime, please be sure to read the below weekly newsletter including industry data, tips and strategies and remember you can always visit our  COVID-19 Resources Page for more information.

We are here for you during this difficult time.

Alternative Operation Strategies

 

Webinar April 2nd – How to Transition to Takeout and Delivery

As COVID-19 spreads through the community, more and more restaurants are turning to take-out and delivery to combat closures and keep their businesses operational. Transitioning your business model from in-house to to-go can pose unique challenges for restaurant operators. Join Compeat’s Serena Greer on April 2nd at 1:00 pm EST as she walks you through key reports and considerations you should make before you make the full transition…

 

5 Strategies Restaurants Should Implement Now

A lot has changed in the food ecosystem since last week, leaving restaurants scrambling to stay afloat. After taking inventory of the past week, most restaurants are transacting a mere 10th of the business they were before. It doesn’t take a mathematician to connect the dots. Takeout and delivery is not enough…

 

While Many Restaurants Struggle, Here’s How One is Thriving

The food service industry is facing pandemic-related layoffs and closings, but tech-savvy chef Eric Rivera is using online platforms to keep his business in the black. Check out the transitions and decision Rivera made in order to quickly shift the way he ran his business and is now doing better than when the outbreak first began…

 

5 Tips for Restaurants Switching to “Ghost Kitchens” During the COVID-19 Crisis

While the COVID-19 scare is forcing so many to close their dining rooms, we can still rely on every generation right now who is dependent on restaurants for takeout and delivery of their meals. Whether you will rely on running a ghost kitchen as we navigate through this difficult time or plan to make To Go and deliveries a part of your long-term business strategy…

 

Best Safety Practices for Delivery and Takeout in the COVID-19 Age

With most restaurants forced to close their dining rooms because of state and city restrictions, operators are increasingly turning to the sole off-premise channels such as delivery and carry-out. Nation’s Restaurant News turned to Mandy Sedlak, food safety and public health manager for Ecolab’s Ecosure division, to offer her expert advice…

 

Restaurant Industry Tips & Data

 

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90 Ways to Survive the Next 90 Days for Bars and Restaurants

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Restaurants Doing Good

 

How restaurants are stepping up to help their communities during the coronavirus pandemic, from providing toilet paper to meal kits

With creative solutions that can help struggling restaurants pivot to a new aid-focused business model, or by simply donating extra food and resources to those in need, restaurants are on the front lines of the “good news” coming out of this pandemic panic…

 

Starbucks implements $3 pay raise for all working employees during coronavirus crisis

Starbucks CEO Kevin Johnson is enticing employees to continue working with a pay raise. Starbucks Service Pay will be in effect for all store-level employees from March 21 through April 19, the same time period as the catastrophe sick pay for those who are unable to work…

 

Texas Roadhouse CEO gives up salary to pay employees during coronavirus pandemic

Texas Roadhouse CEO Kent Taylor is giving up his salary and bonus for the year in order to pay the steakhouse chain’s front-line employees during the coronavirus pandemic.Taylor elected to forgo his base salary and incentive bonus from the pay period starting March 18 through Jan. 7, 2021…

 


READ ALSO:

Five Strategies to Smoothly Prepare Your Restaurant for Delivery and Take-Out

COVID-19 Relief is Emerging. Where to Turn for Help

Nine Business Strategies for Coping During the COVID-19 Crisis

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