Last week, we asked our resident Restaurant Guru Max Trujillo about why some restaurants were still closed—over a year after the governor initially shut them down—only to have almost all of Raleigh’s top eateries now reopen as of last weekend (woohoo!). One we’re still waiting on? Players Retreat. Rumor has it that it’s opening in May… but we’ll see. In case you’re still curious, here’s what our Restaurant Guru had to say about why some restaurants took longer to open than others.
Dear Restaurant Guru,
By all accounts, our state is reopening and anyone who wants to be vaccinated can now get a shot, so why is it that some of Raleigh’s most famous restaurants are still completely closed to in-person dining—especially now with 75% indoor and 100% outdoor occupancy allowances? I think it looks bad for the city—and isn’t conducive to recovery—so I’m curious if there is something that we, the public, don’t know or understand?
Sincerely, Restaurant-Goer & -Lover
Dear Restaurant-Goer & -Lover,
Many of the recent conversations I’ve had with chefs, bartenders and restaurant owners have been hopeful for the future. As the masses are getting vaccinated, there’s a feeling of some sort of normalcy on the horizon. But a looming cloud over the entire industry remains because we still have many obstacles to overcome.
Let’s start with the easy stuff. It’s my belief that, while there are COVID regulations regarding dining, capacities, hours of operations and more, many businesses will stay closed. If you run the numbers—as these businesses did when they made their original business plans—it’s not financially possible to stay afloat with limited occupancy. In general, many places were already struggling to be open before the pandemic.
Say what you will about government assistance, but the fact that many businesses were able to qualify for multiple rounds of PPP funding allowed them to pay their monthly expenses—and even some salaries for their staff—during the shutdown. Many staff members were making more money from unemployment, or at least enough to pay their bills.
Now let’s talk about the not-so-easy stuff. It’s sad, but so many people have permanently left the industry for a myriad of reasons, one of which is safety. The basic nature of the hospitality business is a public profession. Many people are not willing to work in an environment that services hundreds, if not thousands, of people daily.
And there’s also the ugly truth about the industry being riddled with racism, sexism, and social and financial inequities for decades. Learning how to pay people properly is on the frontal lobes of all business owner’s brains. For these reasons, the employee pool has dried up into a desert. And who can blame them? During the quarantine, people figured out other ways to make money after losing their jobs with the snap of Thanos’ fingers.
While many restaurants will continue to stay closed until they can properly open without restriction, my advice to you is to support companies that are open and here for you today. These businesses found a way to make it work, and I applaud them for their efforts. They could really use your support, and, after 2020, you deserve a cold drink and a well-prepared meal.
Dear Restaurant Guru, We love eating out, and we’ve continued to do it safely to support local restaurants. But I’ve noticed that some restaurants have added a service charge to the bill, and I have mixed feelings about this. I know restaurants are struggling, but so are we—my husband and I aren’t making half the money we made last year. Even still, we are trying to support our favorite places, but it’s getting more expensive—and I just read that some restaurants want to keep the service charges when things are fully open again. Why should I have to pay it once they are back to 100% capacity?
Sincerely, Not a penny pincher
Dear Not a Penny Pincher, I hear your concern because this is an issue that needs to be addressed. First off, thank you—from all of us in the industry—for your support. Second, let’s clarify the service charge: It’s usually an extra 10% over the typical gratuity, raising your entire bill about 30%. Lastly, let it be known that these service charges are not for the cost of food, rather, for the cost of the dining experience. Perhaps the price of going out to a restaurant is far more expensive than we once thought?
2020 brought along myriad woes for the restaurant industry (complete closures, damages to buildings, the exposure of multiple sexual harassment offenses, and the complete restructuring of the business model in a post-pandemic world).
Running a restaurant has always been a tough way to earn a buck. To give perspective, industries like banking, software and even the liquor business are 2 to 3 times more profitable. With current limitations to the number of guests a restaurant can safely serve, the industry is, well… you can insert your favorite curse word here: __.
I have worked in the industry for over 25 years as a GM, server, bartender, line cook and definitely a dishwasher. I’ve done all the jobs. Heck, I even co-created the North Carolina Food & Beverage Podcast (shameless plug), which has provided me a conversation with nearly everybody that makes up this beautiful-but-broken industry. All these jobs are essential to make the business run. But not all of them get compensated enough. The purpose of a proper service charge is to help even out the pay structure for all of these positions.
“I hope that service charges will become the norm as we go forward. But the only real way for it to catch on is if more restaurants implement this concept.”
It comes down to paying our restaurant workers a fair wage, and there simply is not enough revenue generated by food and drink alone. Perhaps we can consider a service charge an entertainment expense or luxury tax? Whatever you want to call it, there is a third part of the equation that’s being underfunded, and that’s for the people that make it happen. I hope that service charges will become the norm as we go forward. But the only real way for it to catch on is if more restaurants implement this concept. Otherwise, those who are trying to pay their staff responsibly will be perceived as expensive—as opposed to the standard.
If you want to avoid this, get takeout and leave a 10 to 15% tip. But if you’re planning something special or simply want a night out, be prepared for the time of your life. But also, be prepared to pay for it.
— Max Trujillo Host of the NC F&B Podcast ncfbpodcast.com
We like to go to all kinds of bars but I simply don’t understand how some are open and others aren’t allowed. I keep hearing that it depends on how a bar is classified on its liquor license. Can you explain what the difference is in, let’s say, Killjoy that’s allowed to be open, versus Atlantic Lounge or Dram & Draught? Can a bar just start serving food and open up again?
Sincerely, Bar Baffled
Dear Bar Baffled,
I am baffled, too. It would seem arbitrary to close bars but allow restaurants and breweries to heed safety regulations in order to serve food and drinks, as if our government is taking the safety responsibilities away from bar owners before they even have a chance.
Technically speaking, North Carolina doesn’t have bars; it has restaurants and private clubs that sell liquor. Selling food helps keep some bars open, and certain clubs, like Killjoy, have full kitchens. But simply adding a food component isn’t that easy, as one of the benchmarks of being open in phase 2 required private clubs to have already served food to some extent before the pandemic shutdown. Private clubs that attempted to open by adding food sales were threatened with losing their liquor licenses if they weren’t fully compliant with phase 2 regulations. If bars truly want to pivot to adding food sales, there are health inspection requirements, changes to the business license, fire suppression installations and other considerations that could cost hundreds of thousands of dollars. It’s just not what many bar owners opened their businesses for in the first place.
Rather than changing all bars into restaurants, though, let’s focus on why they’re closed. What’s the motivation? Fear and money are always good motivators.
For fear, we’ve seen the throngs of people outside bars on Glenwood South not wearing masks and not socially distancing. This definitely doesn’t slow the spread COVID-19 and these are a few scenarios where unsafe behavior put enough fear out there for Gov. Cooper’s administration to decide to eliminate the notion of reopening bars altogether. Sadly, that’s “so American” of us, like when someone doesn’t pick up their dog’s poop on the beach and no more dogs are allowed, or someone throws a glass bottle onto a football field and now, only plastic cups can be used at stadiums.
What about money?
In North Carolina, all liquor sales and revenues are handled by the state. I did a little digging on the publicly accessible abc.nc.gov website and found that, from only January to August, North Carolina is up about 15 percent, or $120 million, in liquor revenues over 2019. As a comparison, I went back to 2013 and found that, each year, we average a 7 percent growth in liquor sales. Our estimated increase in revenue this year is about $180 million over last year, double the increase in growth and a lot more money than what’s typically earned.
Perhaps that large uptick in revenue could be used to help out the small business owners that were forced to close? Wouldn’t that be a novel idea? Don’t hold your breath, bartenders.
It’s easy to say “no” in difficult situations but harder to truly evaluate situations and think critically about solutions. There are solutions that restaurants are already implementing, including placing tables 6 feet apart, wearing masks and restricting guests to their specific seats. Even patio restrictions have relaxed, so more outside space can be used for dining.
Would bar owners and staff heed these rules? And would bar guests want to go to bars where they have to sit in their seats the whole time? Unfortunately, the lawmakers have made that decision for us, despite Cooper’s administration being sued by nearly 200 NC bar owners who want to be allowed to reopen.
The long and short of it is, if our food and beverage industry hopes to survive, our government has to make some changes to offer help. The fear will always be there, but apparently, so is the money. So, I see two paths state officials can choose from: either they compensate those forced to shutter with financial assistance or let them reopen with regulations.
Right now, bars are on the brink of bankruptcy by getting neither.
Dining out has always been my favorite form of entertainment and I’d love to go back out and enjoy myself. How can I know restaurants are working safely and feel justified taking the risk?
Thanks, Daring to Dine Out Again
Dear Daring to Dine Out Again,
I’ve been in the hospitality business for over 20 years. Throughout that time, none of us have endured challenges like what the restaurant industry faces today. Staying home might be the best solution to reduce the risk of contracting the virus, but we also know that, with no end in sight, we have to adapt. Measures like the North Carolina Restaurant and Lodging Association’s Count on Me NC initiative, where restaurants and their staff commit to health and wellness checks and enhanced sanitation and cleaning practices, will go a long way in ensuring customers’ safety.
Last year, I helped open Wye Hill Kitchen & Brewing. My role was to hire and train a team, build a beverage menu and manage day-to-day operations until Wye Hill could hire a permanent replacement. I moved on once the business was sure-footed to run on its own.
When the stay-at-home order was announced in March, all restaurants and bars had to close. On May 22, our state’s Phase 2 guidelines were released and I distinctly remember sitting on my couch, feeling sorry for restaurant people who had to deal with re-opening. Not long after, I received a text from my buddy who owns Wye Hill, asking if I would rejoin the team.
I considered the task of reopening during a pandemic a challenge. How do we practice social distancing, ensure the health of our employees and guests, while creating a fun and entertaining business? Oh, and also try to be profitable? That’s the big question.
Wye Hill has the benefit of a large patio overlooking the downtown skyline. Outside dining is important right now. With fewer tables and a spread-out floor plan, we need volume and efficiency to make this work.
First, we set up two dedicated roles, which we call “sales” and “service,” that help reduce cross-contamination. “Sales” operate similar to traditional servers, taking orders, processing payment and clearing plates and glassware. The “sales” team has zero interaction with food and drinks. That role goes to the “service” team. “Service’s” sole responsibility is to deliver food and drinks to our patio diners and takeout/curbside delivery to guests, so the person delivering your food doesn’t pick up empty glasses from your table. Even glassware is cleaned and sanitized in the dish-pit; bartenders don’t clean glasses, they only make drinks. All of our employees wear masks and all food handlers wear gloves. By streamlining, we’ve become more efficient, needing fewer employees than pre-COVID. We’ll continue this practice when things go back to normal.
Second, everyone’s role is equally important, so pooling tips is essential. This allows us to truly be one team, one dream, a benefit to the guest because anyone can help at any time.
The food menu had to be streamlined because fewer people are allowed in the kitchen at once. We even outsourced our dessert program to support a new business, Bestow Baked Goods, to provide cupcakes, oatmeal cookie cream pies and four-layer cakes. That was one of the best decisions we made.
We are keeping the highest standards for your safety because we want you to feel safe, want you to come back and want to be in control of our future. It’s not for me to decide if you should dine at a restaurant but it sure as hell is my responsibility to ensure you, and all of our guests, feel at ease when you’re here. So, I hope to see you soon.
If you have a question about Raleigh’s restaurant/bar scene, email [email protected]
In order to avoid transmitting germs during the coronavirus outbreak, we hear it’s better to pay at restaurants using a personal card rather than cash. But it doesn’t really seem like that is the best option for restaurants and servers, especially for tips. Is it?
Thanks, Cash Concerned
Dear Cash Concerned,
In light of the global pandemic, many of our normal practices are changing. We must remember to never leave the house without our keys, phone, wallet, mask, sanitizer, gloves, sunscreen, umbrella, sunglasses, eyeglasses, hairnet, beard net, breath mints, Elvin invisibility cloak and Mithril chainmail (those last two are for my fellow “Lord of the Rings” nerds).
Notice I didn’t mention cash? That’s intentional. Keep your cash in your bank.
To keep yourself safe from viral contamination, the easy answer to paying at restaurants is to simply pay with credit cards versus that cold, hard, sticky, moist, bacteria-ridden cash. But there is a drawback to using credit cards for your payment needs. Credit card companies need to get paid to make their business work too, so it’s coming at a cost to the restaurants you’re trying to support.
Over the last few months, restaurants and their employees have struggled, to say the least, and even now they have limitations on doing business, so there’s no perfect answer to say what’s best.
Paying in cash avoids fees for restaurants on every transaction, so cash is best on a financial side. And servers love getting tipped in cash because that’s money in hand, instead of waiting for a bi-weekly paycheck. But let’s be honest, we’ve been moving away from cash for years and the pandemic has virtually eliminated the need for carrying money in our wallets altogether.
Most business owners I’ve spoken with admit that cash accounts for less than 6 percent of total revenue. And that was before the pandemic. So, even if there’s the faintest chance of transmitting a virus because of the interaction of exchanging a few dead presidents, let’s just use a card.
Will paying with a card affect the bottom line for restaurants? Not as much as it affects their livelihood if you’re not consistently supporting them. Whether it’s curbside takeout, dining while socially distant, patio dining or even delivery, just keep coming back. We need you.
