Tag Archives: restaurants

New capacity limits will destroy most remaining restaurants

The beatings will continue until morale improves: The new capacity limits being imposed by state governments due to their panic over the Wuhan flu will likely destroy the bulk of the remaining restaurants that have managed somehow to get through the lock downs.

As some states across the country allow businesses to reopen with limited occupancies, there are still serious obstacles in the paths of restaurant owners. In those Tennessee counties that have already reopened, restaurants can’t exceed 50 percent of their maximum occupancy. Restaurants in most of Iowa will also have the option to reopen at half capacity. Those in Alaska will be limited to 25 percent capacity, and will only seat diners who make reservations in advance.

Ryan Pernice, who owns three restaurants north of Atlanta, didn’t jump with excitement when Georgia Gov. Brian Kemp released a list of 39 guidelines in advance of a push to open certain businesses — including restaurants — on April 27. Most notably for restaurant owners, the guidelines do not allow more than 10 patrons per 500 square feet in dining rooms. After Pernice closed his restaurants on March 17, leaving just one of his restaurant kitchens open for delivery, he sat down to crunch some numbers.

Even with the lights and the walk-in refrigerators turned off, running a restaurant remains an expensive endeavor. Pernice decided to continue paying for services, like pest control, that couldn’t just be ignored, as well as major costs like rent and outstanding vendor invoices. To break even and cover expenses at Table and Main, Osteria Mattone, and Coalition — his three restaurants — would cost $4,128 a day. Though he’ll take the measurements and rearrange the tables to see if reopening is feasible, Pernice can’t imagine hitting that number with only half of the seats in his restaurants occupied. “Not having run the numbers, I seriously doubt that in Table and Main, a tiny restaurant of 1,800 square feet, that I could make more doing sit-down dining than I can right now through our takeout … I think there’s very little to be gained by being the first to this party, in terms of opening the dining room again.”

In other words, under these new rules, a large percentage of the remaining restaurants will be unable to make a profit and die.

The lock downs are expected to bankrupt 20% of all restaurants, putting more than 8 million people out of work. These new rules will probably destroy, at a minimum, another 40%, mostly the smaller, independently owned businesses.

And the rules are absurd, on their face. They will not stop the spread of COVID-19, in the slightest. All they will do is destroy the lives of the people who own the restaurants.

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The requirement in Obamacare that restaurants list calories on their menus will cost billions.

Finding out what’s in it: The requirement in Obamacare that restaurants list calories on their menus will cost billions.

President Obama’s own Office of Management and Budget listed the menu display imposition as the third most burdensome statutory requirement enacted that year, forcing retail outlets to expend 14,536,183 work hours every year just to keep Uncle Sam happy. Instead of applying the menu rule just to restaurants, the Food and Drug Administration (FDA) decided on its own initiative to sweep certain convenience stores and pizza delivery storefronts under the calorie-count requirements. FDA bureaucrats are even micromanaging compliance, down to determining the sizes of fonts that can be used on menu signs.

This regulation does nothing to lower the cost of healthcare, and in fact increases costs in more ways than can be counted. Moreover, it is less than useless in improving the public’s health.

However, it does do a lot for federal bureaucrats, giving them more power over businesses and our lives. Hooray!

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To avoid the cost of Obamacare, companies are reducing their full time stuff and switching as many employees to part-time as possible.

Finding out what’s in it: To avoid the cost of Obamacare, companies are reducing their full time staff and switching as many employees to part-time as possible.

It is very simple. The regulatory cost of Obamacare is so high companies are doing anything they can to avoid it. It is for this reason that they stopped hiring almost the instant the law was passed, and are now scrambling to find other ways to survive outside its influence.

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Restaurants Brace for Job-Killing Obamacare Regulations

Repeal it: Chain restaurants struggle with Obamacare regulations requiring all menus to include calorie information.

Under the new rules, if [a chain] wanted to introduce a new item, such as a crab cake pizza, [they’d] have to replace the signs in all of [their] stores, sucking time and money that could otherwise be used to build [the] business.

And:

“So what it comes down to is this: The federal government has passed a law requiring us to build new signs, or buy new menu boards, and to put on those signs and menu boards information which we already provide, even though it is unlikely to change eating habits, at a cost of over a million dollars we will divert from and be unable to spend on jobs,” cautioned Puzder.

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