TL;DR
The restaurant industry is being hit hard by the COVID-19 crisis, with changes in guest behavior and a need for effective communication with team members. Jim Balis, former CEO of numerous restaurant companies and head of the Strategic Operations Group at CapitalSpring, emphasizes the importance of understanding the crisis's impact and taking protective actions.
During the COVID-19 crisis, the restaurant industry is poised to be hit especially hard. Jim Balis, the former CEO of numerous restaurant companies, heads the Strategic Operations Group and is closely involved in all investments at CapitalSpring, a restaurant investment firm that has completed investments in over 4,000 restaurants across multiple brands and segments.
“With exposure to approximately 100,000 of our network’s employees, we are taking this issue very seriously,” said Balis. “We are seeing the impact of COVID-19 in every segment of the restaurant industry.”
To best respond to the outbreak, restaurant owners need to understand how the crisis is affecting the food service industry. When it comes to changes in guest behavior across CapitalSpring’s portfolio, Balis notes first and foremost the move toward off-premise service, including drive-thru, delivery and pick-up orders.
“Market concerns seem to be driving consumers to trade down into lower-priced or QSR brands,” said Balis. “We are seeing better performance in these segments, specifically those locations with a drive-thru. Other concepts that have a buffet or salad bar model are experiencing greater declines. Casual dining is getting hit a little harder, especially concepts where the food doesn't travel well for delivery or where the brand has not attracted an off-premise customer historically.”
Consumers’ confidence in restaurant food remains stable. Balis attributes this to the strict standards of safety and sanitation around cooking that customers seem to understand and rely on in times like this. Now, team members and franchisees need to have an amplified awareness of protective actions to keep these standards met.
Communication to the restaurant’s network is more important than ever, as staff and franchisees need directives and educational materials to survive this crisis. Franchisors must communicate effectively to their franchisees and staff to make sure they understand that the team’s safety and economic well-being is top priority.
Restaurant owners need to be sanitizing the front of the house, including counters, soda areas, door handles, tables and chairs. Since some territories are experiencing a shortage of sanitizer, franchisors or brand owners should work to solve these distribution issues. In the back of house, utensils need to be cleaned more frequently, with immediate action taken if a team member sneezes or coughs.
“It is also important to assure employees understand what is being done to protect them, what support will be given during a furlough and what the business plans are for when the crisis ends,” said Balis.
In order to create the safest environment possible, team members need to be educated first and foremost on COVID-19, including what experts know about transmission, incubation and symptoms. Restaurants also need to create a clear communication channel to report if team members show signs of infection, prioritizing extreme efforts to protect the privacy of individuals.
- Educate team members on proper hand washing instruction
- Sanitize the front of the house, including counters, soda areas, door handles, tables and chairs
- Clean utensils more frequently in the back of house
- Make sure that gloves, hats and other protective wear are readily available
- Cover the nose and mouth when sneezing or coughing
- Seal delivery bags and boxes to avoid potential tampering
- Use contactless payment instead of paying with cash or credit cards
In this story
This story was originally published in 1851 Franchise on April 16, 2020. Burnaze summarizes and links to the original reporting.
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