As we emerge from the devastation wrought by the COVID-19 pandemic, we have all been changed forever. This is true personally, for most folks, but is especially relevant to our operations. We all endured lengthy closures and disruption followed by a litany of new best practices that, just a few short weeks earlier, would have been unthinkable. From this upheaval have also risen some new concerns and some old ones made worse.

Infographic: How COVID-19 affected the restaurant industry and what restaurant owners are planning for in the future.

Consequently, we did a survey in an effort to understand what happened to your restaurant during the pandemic and want you are concerned about moving forward to the new “normal.” The results are not shocking, but they do reveal some truths about our past and future vulnerabilities.

Closing Time

The pandemics limiting effects were felt almost immediately in mid-March, but by early-April nearly the entire country was on lockdown. Nearly 8 in 10 restaurants were forced to shutdown because of COVID-19. While most have reopened, 77% of you kept your dining rooms closed for up to 8 months during the pandemic’s various surges and 2.4% of you are still only operating for off-premises.

These numbers do reflect a bit of survivorship bias, as the survey respondents are all still operating. However, in 2021, more than 110,000 restaurants closed their dining rooms, either permanently or temporary. And those that did close up shop for good, roughly 72% of them said it’s unlikely they’ll open another restaurant again, according to an NRA study.

The restaurant industry saw sales fall by $240 billion in 2020 from an expected level of $899 billion.

The good news is that 81% of The Rail’s survey respondents are extremely confident they’ll still be operating in a year and only 7% are somewhat concerned their business won’t make it.

Those That Survived Have Adapted

Restaurants that did re-open their dining rooms were forced into myriad new ways of organizing and operating their businesses. From changing your seating layout (88%) to adding new ways for guests to pay (51%) to updated product offerings (46%), you were forced to respond.

Cleaning and sanitation have always been important to the restaurant industry, but COVID-19 forced operators and their teams to up their cleaning game over the past year. A little under half of you (46%) are spending between 1-10 extra hours per week cleaning your business. Another 29% are spending 11-25 hours sanitizing your restaurant.

Future Concerns Revolve Around Their Team

Out of all the convulsion emanating from the pandemic has also come some new concerns facing operators that are both unfamiliar and scary, but it’s not limited to new stuff, to be sure.

As an example, by far, the greatest challenge noted by survey respondents is actually an old fear that never seems to give us a break -- staffing. In fact, 92% of you identified hiring & retaining staff as your primary concern in the coming year. Compare this to the second biggest concern stated – driving traffic at just 32%.

Staffing concerns are most definitely exasperated by the fact that 63% of survey respondents had to lay staff off at some point during the pandemic. And now, after a year of layoffs, low pay, and dealing with rude guests during a pandemic, some operators are struggling to fill their rosters.

The 88% of you that have increased wages in the past 6 months should be all the proof you need for the seriousness of the circumstances. What was once a shallow labor pool, appears to have converted into an empty one. Our industry took a hard hit in the eyes of workers and it’s going to take a lot of work to regain that trust.

The good news is the easiest problems to solve are the ones you identify. Wage increases are the beginning of a very new paradigm in recruiting and selecting staff. It’s also good to note that classic efforts such as improved training, better scheduling practices, and improving communication are all still tools available to survive in the face of this wildly increased challenge.

No matter what you add to your restaurant’s approach, you will be forced to revisit your performance if your goal is to stay staffed and grow your business. To offer some further insight, enjoy this webinar we delivered that addresses the various ways to find the best talent and improve your retention. It has never been more relevant, and we are happy to provide the support.

Searching for Better Business Partners

While restaurants look to regain what they lost in 2020, they’re also seeking help from their business partners and vendors they work with. More than half of survey respondents say they expect better financial terms from partners/vendors (51%). Meanwhile being given promotional items and prizes to give to guests (44%) and help with marketing services (33%) round out the top three things restaurant operators want from the folks they do business with moving forward.

New tech is also on the horizon for many of our readers. About a third of operators (30%) plan on adopting new software within the next year, including new POS (68%), contactless technology (60%), mobile payment (48%), and inventory/supply management (36%).

COVID-19 changed our restaurants in ways we never could’ve imagined. Many great restaurants have shut down for good and workers left for other industries; however, one of the strengths of our industry is our ability to adapt. Only time will tell what the “new normal” will have in store, but, no doubt, you all will rise to the occasion as you always will. And we’ll be right there to try to help you along the way.

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