David Nayfeld is co-owner and executive chef of San Francisco restaurants Che Fico and Che Fico Alimentari, which he was forced to close in March because of COVID-19.
Restaurants that take out loans — adding debt to their balance sheets — will have to deal with them in a matter of months.The eight-week timeline prescribed by the Small Business Association for businesses to spend on labor is disjointed with the reality of what most cities are expecting. As reopenings occur — depending on local governments weighing risk, density, and healthcare — there is little to no guidance on what the new guidelines will be.
When people ask me when I began to get nervous about the outcomes of the countrywide coronavirus closures, I almost want to laugh. "I've been nervous since before we opened our restaurant. I'm always nervous." Landlords need to have skin in the game. If we're running a tight ship with good numbers in other areas of the profit-and-loss statement, landlords should renegotiate in good faith. Explain that keeping occupancy costs at 5% or lower will benefit us both and add longevity to the relationship. Demand pre-negotiated escalations. Include a lease-assignment clause that allows you to sign your lease over to someone else if your business fails or you need to move.
For states that do offer tip credits, but the restaurants still struggle, let's bring back the concept of the apprenticeship. When I was a cook you had to learn to be a butcher and a sauce maker before you could dream of becoming a sous chef or landing a management position. One idea: Let's tax businesses that have a significant amount of their workforce on welfare programs. Let's get ahead of automation, which is happening already , and put a tax on any job taken by a machine. These taxes can go directly to a universal basic income or some form of welfare. For businesses already doing it right, let's give them a tax break.
Will be good, if banks give collateral free loans at this time soon after lockdown lifted
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