Hunker Down: Some States Say No Full-Scale Reopening
Until coronavirus vaccine, treatment is ready. As most states begin to move forward with measures to reopen their economies following strict lockdowns aimed at slowing the spread of the coronavirus, some governors and big-city mayors are now saying the restrictions will not fully be lifted until a vaccine or treatment for the disease is available — a timeline that could take a year or more. The leaders’ comments indicate Americans could be living with orders restricting personal and economic activity for much longer than many anticipate. New Jersey Gov. Phil Murphy was the latest of the state executives to make such comments in a press conference on Monday. “You, too, should expect to continue with this for the foreseeable future,” Murphy said of the state’s coronavirus restrictions, as he outlined when workers might be able to get back to their offices.
Help for Battered Restaurants Could Be On the Way
As House considers new bills. Almost from the day the $670 billion Paycheck Protection Program was announced, restaurant owners have been complaining that it doesn’t work for their industry. Congress has clearly heard them. Last week, Reps. Dean Phillips (D-Minn.) and Chip Roy (R-Tex.) introduced the Paycheck Protection Flexibility Act, which would extend the period in which small businesses can use the money and ease restrictions on the amount they can spend on non-payroll expenses such as rent. House Speaker Nancy Pelosi (D-Calif.) signaled that she would be willing to hold a vote next week on the act, a shift from her recent strategy to focus only on major coronavirus relief bills, according to a Politico report. The effort appears to have bipartisan support in the House and Senate as a quick fix to the Small Business Association program that has drawn widespread criticism from restaurateurs whose PPP money would convert to a two-year loan if they don’t follow the terms of the program.
House Set to Approve Flexibility
For PPP Small-Biz Loans. The House is expected to vote next week on a narrow bipartisan bill that would give more flexibility to small businesses that receive forgivable loans from the Paycheck Protection Program, removing certain requirements and extending several deadlines. The Paycheck Protection Program Flexibility Act would nix a requirement that at least 75% of funds go to payroll and allow businesses more time to use the loans and rehire workers. Such flexibility has support in both parties and both chambers of Congress. House Speaker Nancy Pelosi spoke positively about the bill Wednesday and confirmed that it is slated for a vote in the chamber next week.
Independent and Chain Restaurants Press Trump
On relief efforts at White House meeting. Executives for restaurant groups large and small pressed President Trump for more federal assistance and for more time to spend the relief money they already have during a White House meeting Monday ostensibly arranged to discuss how to safely reopen for businesses during a pandemic that has stretched into its third month. Ten chefs and executives, representing chains as large as Burger King and restaurants as rarefied as Per Se in New York City, brought their economic concerns to the meeting as the president and many governors continue to push for reopening businesses, including the nation’s estimated 650,000 restaurants.
Six Workforce Issues
Restaurant employers may face as they reopen. As restaurants reopen or rev up their operations after coronavirus restrictions, operators face a multitude of workforce challenges and a number of potential thorny legal issues. And workers themselves are nervous. In the coming weeks, employers and workers will encounter perhaps the most significant and rapid changes to the workplace we have ever encountered in modern history. Here are six issues businesses will be facing.
South Jersey Gym That Defied Murphy’s Orders Is Shut Down
Gym in Bellmawr was closed on Thursday after reopening three times this week in violation of the governor’s executive order. A South Jersey gym that has been reopening all week in defiance of Gov. Phil Murphy’s stay-at-home executive order has been shut down by the state and county, officials announced Thursday morning. The owners have said they will reopen again on Friday, and are consulting their attorneys. The New Jersey Department of Health signed an order shutting down Atilis Gym in Bellmawr on Wednesday night, Camden County Spokesman Dan Keashen said Thursday morning. The order was then posted outside the gym by county officials.
Did You Know?
“Restaurant Rap” series doubles-up this week. Due totheexceptionally positive response received thus far, Bielat Santore & Company’s “Thursday Restaurant Rap” series is providing a second interview of the week today. Following the “Tuesday Edition” with Global Indemnity Insurance, today’s “Restaurant Rap” features an exclusive interview with Steve Bidgood, owner and operator of Salt Creek Grille restaurants in New Jersey and in California. This series appears each Thursday within the company’s Restaurant Industry Alert daily bulletins. It presents recorded virtual video interviews with local restauranteurs and other industry professionals, many of whom are the firm’s clients, customers and associates.
A second stimulus check from the IRS. What’s happening with Round 2? Interest is growing in Washington for a second wave of stimulus payments. The thrust among some to pass another bill that puts more money in your pocket is gaining steam just as the IRS begins to send the final checks from the first economic relief measure. Whether Congress and the president will approve a second round of stimulus payments for $1,200 this year is another question. The second round of stimulus checks is far from guaranteed, and likely to change even if it does succeed. We’ll outline the most important things you need to know, including how much money you might expect to get if the current bill is successful, common arguments for and against the proposed act and what happens next.
Bielat Santore & Company – Restaurant Industry Daily Alerts
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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.