NJ Outdoor Reopening Guidelines
State of NJ executive order guidelines. Effective at 6:00 a.m. on Monday, June 15, 2020, restaurants, cafeterias, dining establishments, and food courts, with or without a liquor license, bars, and all other holders of a liquor license with retail consumption privileges, collectively referred to as “food or beverage establishments,” are permitted to offer in-person service at outdoor areas, provided that the establishment complies with the following requirements:
ABC COVID-19 expansion of licensed premises permit. The Director of the Division of Alcoholic Beverage Control (the “Division”) has determined it necessary to create a temporary permit, known as the COVID-19 Expansion of premises Permit (“COVID-19 Expansion Permit”), to enable licensees and permittees to expand their licensed premises into outdoor areas, either contiguous or non-contiguous to their permanently licensed premises.
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Department of Health protocols for food and beverage outdoor areas. Food or beverage establishments offering service at outdoor areas pursuant to Executive Order No. 150 (2020) must adhere to the protocols and impose the following requirements on employees and customers.
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Global Insurer Agrees to Pay COVID-19 Business Interruption Claims
AXA, one of the biggest insurance companies in the world. Has agreed to pay COVID-related business interruption claims by a group of restaurants in Paris after a court ruled that the restaurants’ revenue losses resulting from COVID-19 and related government orders were covered under AXA’s policies. AXA initially took the position that its insurance policies did not cover business interruption caused by COVID-19. The restaurant then sued AXA in a French court, seeking coverage for operating losses resulting from a government order issued in March mandating the closure of restaurants and bars in response to the COVID-19 pandemic. The court concluded that the government orders, which prohibited restaurants from receiving the public and offering traditional sit-down dining services, triggered the policy’s coverage for business interruption coverage.
A Plaintiff Attoney’s View on COVID-19 Business Interruption Claims
It’s an argument that has hit the headlines in recent weeks. A New York attorney has called out insurance agents and brokers for misguiding clients about COVID-19-related business interruption (BI) claims. Petro Zinkovetsky, founder of NYC-based Zinkovetsky Law Firm, says agents and brokers are unintentionally doing their commercial clients a disservice by advising them not to file BI claims, despite the almost inevitable denial that claimants will receive from carriers. “Unfortunately, it seems like there’s a lot of misinformation coming from insurance agents and brokers with regards to BI claims,” said Zinkovetsky.
Marlboro Diner Adds Car Hops to Battle Lockdown
Sorry, no roller skates. Drive up to the Marlboro Diner on Route 9 these days and you might think it’s 1960, not 2020. Especially when the car-hop waitress brings out your food on a tray and mounts it on the car window. The new service is both a way to promote the eatery and expand options during the coronavirus pandemic, according to owner Kara Petrou, who sent out the first car hop on May 30. “It is another way to try and stay afloat,” she said about the throwback service. “We have been able to pay the bills and pay the staff, but we are a very skeleton staff. This has helped a little bit.”.
Restaurants Blow Up Their Business Models to Thrive Post-Covid
Reinvention is the key to recovery for these independent operators. Like many restaurateurs, Christianne Ricchi, chef-owner of Ristorante i Ricchi in Washington D.C., had to turn on a dime when her Tuscan-inspired restaurant was shut down in March. To keep the business going, she launched the I Ricchi Food Club, featuring a curated four-course Italian dinner available for order-ahead and pickup. The price ranges from $43 to $49 per person for one pickup, with a 20% discount if customers sign up for a once-a-week, four-week subscription. Each meal comes with a candle, optional wine pairing and personal travel notes relating to that night’s “culinary journey.” Ricchi’s goal was to create a restaurant experience at home. There’s no question that the pandemic has been devastating to the restaurant industry. A number of independents have permanently closed, unemployment is sky high and even upon reopening, capacity restrictions will severely impact profitability.
Did You Know?
Tenants’ troubles put stress on commercial real estate. As landlords face rent shortfalls and renegotiation because of the pandemic, lenders are also exposed. Hotels and retail spaces have been hit hardest. Faced with plunging sales that have already led to tens of millions of layoffs, companies are trying to renegotiate their office and retail leases — and in some cases refusing to pay — in hopes of lowering their overhead and surviving the worst economic downturn since the Great Depression. This has given rise to fierce negotiations with building owners, who are trying to hold the line on rents for fear that rising vacancies and falling revenues could threaten their own survival.
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Restaurants added 1.4 million workers in May, says stunning new jobs report. Very encouraging news was revealed today as restaurants across the country are reopening and massively rehiring much of the staff laid off or furloughed by the CDC’s stay at home orders. n a rather stunning report about unemployment rates and jobs added for the month of May, The United States Labor Department revealed that 2.5 million jobs were added, and that the unemployment rate declined to 13.3 percent. This is far better than what economists expected and indicates a financial and employment turnaround from the coronavirus pandemic may be closer than originally thought.
Bielat Santore & Company – Restaurant Industry Daily Alerts
NJ Restaurant Reopening Playbook to be released, Monday, June 8th. Bielat Santore & Company has formed a “task force” comprised of multi-unit restaurant operators to collaborate on ideas, procedures, strategies and goals as they relate to the preparation for and the reopening of restaurants and other hospitality-based businesses in New Jersey. The Mission of this “task force” is to provide a collaboration of knowledge, expertise and innovative thinking from some of the industry’s most reputable restaurant operators, that will yield a strategy for all independent restauranteurs to follow, assisting all in the transition back to “business as normal.” The firm will release a “Restaurant Reopening Playbook,” a guide for preparation and execution this coming Monday.
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Thank you and remember all of the “Restaurant Industry Alerts” and “Thursday Restaurant Rap” interviews can be found at www.123bsc.com/news/. We intend to continue to keep you informed as we all look for an end to this crisis.
How to market your restaurant for sale during the coronavirus pandemic. Of course, it will be challenging to market and sell businesses that have temporarily been shuttered during the pandemic, because valuations are based on historical financial data. However, whether you choose to reopen your business or not, owners can still position them for sale. So, what should you do if you want to sell in the next 6 – 12 months? Contact a good business broker that specializes in the sale of hospitality real estate and businesses. Bielat Santore & Company, Allenhurst, NJ has been brokering such sales for over 40 years and will be able to help you come up with flexible deal structures and capital sources to make a sale possible; call for a free consultation – 732.531.4200.