How Restaurateurs Can Weather the COVID-19 Storm

By: Nandu Awatramani

Restaurant closures, both temporary and permanent, continue around New York City, and its restaurateurs are grappling with ever-changing regulations and cold winter days and nights. While hospitality professionals have proven they are creative and resilient during this unprecedented period, even the most optimistic operators have had their share of dark days. Here, F & B Business School’s Nandu Awatramani, a business coach who has owned a multi-unit chain of restaurants that he sold in 2016, discusses how restaurateurs can use this moment to their advantage and create a stronger company culture and, ultimately, a stronger business.

Rest Up

It may sound counterintuitive, but, amid the chaos, this is the ideal time for quiet reflection and self-care. First and foremost, Nandu advises operators to rest. “This situation is tough, no question about it. It’s really hard emotionally on these people right now, but they must take time for themselves to rest, recuperate, and rejuvenate.” 

If your restaurant is paused right now, use the opportunity for some self-care, mentally and physically. “You’re going to need resilience to keep fighting and not give up, and to do that consistently, that requires rest.”

Think Again (and Again)

With one’s batteries recharged, take some more time to think. “It goes against the grain, and I know everyone is deciding on new tactics and techniques, but this is also a time to go for a walk and really think about what they want their businesses to look like. What don’t they want it to be? What do they not want to sacrifice anymore personally and professionally? What will it take to make these changes?” 

If you have the chance, he recommends restaurateurs clear their calendars for a week. “A lot of the smartest restaurateurs are taking the time to think, to plan, to write, to set goals big and small, deciding what not to do anymore and what they should carry forward,” says Nandu. 

He acknowledges it may be difficult for hospitality owners, who are known to be some of the hardest-working people, to slow down. “There is this fear of not being at work means you’re not doing something, but taking time to think, plan, envision, and be strategic in slower periods is actually doing a lot for the business.”

Make a Plan to Increase Revenue

When the pandemic first hit and severely impacted restaurants, Nandu says, “The first place everyone went to was cut costs, cut costs, cut costs, but how much can you slam the brakes of a car? At some point, the car is going to come to a stop. Then what?”

He has faith that restaurateurs have already proven they are adept at cutting costs, but the focus going forward should be on increasing revenue. “If I had to put a number to it, I would say try and make it work at fifty-percent occupancy as an average,” he says. But remember: cash is oxygen. “If you run out of revenues, you’re going to run out of cash flow and then you’re going to run out of cash for your business.”

-Nandu  recommends looking at data past and present, being proactive, and leaning into the entrepreneurial mindset that led them to open a business in the first place. And rally one’s troops. “This is a good time to build a culture that will remain resilient. Create an organism of team members that are aligned on working toward achieving one goal of increasing revenues to avoid having people working in different directions. Empower employees to be forward thinking, be proactive, take ownership, think entrepreneurially, and get everyone on the same page.” When it comes to increasing revenues, there is strength in the people working for you.

If you’re feeling stuck, you can find free video blogs from F & B Business School on increasing restaurant revenues in the year ahead by visiting https://www.fandbbusinessschool.com/blog/.

Be Transparent

Not all business owners open up their books to employees on a regular basis, but now is the time to be as honest as possible with your employees in order to create a solid company culture. “Instant trust is created through transparent communication,” he says. “Everyone respects organizations and people who are transparent.” So, if you’re showing workers bank statements, revenue statements, and more, that will aid in retention and help employees understand if you need to furlough them. “They may not like the news because it hurts them, but they’ll respect it and value it.”

Transparency shouldn’t just end at revenues. Employers need to have a plan in place for helping staffers during these difficult times. “Think like another human being, and forget being a boss.” As fearful as operators are, so are employees. “They’re afraid about being unable to pay their rent, they’re afraid of getting COVID.” Think about what measures you can take to help. Will the team drop off meals if someone is ill? Will the restaurant be able to supplement their lost income? Can you help pay for testing? 

Communicating your thinking around all of these things, even if it comes down to letting employees know there is a chance they will be laid off, will create a great deal of trust. “This can create a lifetime of loyalty, so that even if a worker is let go for several months, the moment the doors are open, this amazing employee is going to want to come back to such a company,”  Nandunotes.

Continue to Speak Up + Reach Out

It’s not news that politicians have not done enough to help restaurateurs. The Restaurants Act was in limbo for months while the industry was (and is) being subjected to what many feel are Draconian measures, including a total ban on indoor dining in New York City. “I think restaurants possibly have been made a scapegoat, and there have been absolutely no proactive measures from the government at all. The politicians just keep slamming restaurateurs with new rules after new rules after new rules.”

The lack of transparency from local government agencies and representatives has created a seemingly unending cycle of frustration for New York City restaurateurs. “Government leaders should have said, ‘Let’s have a conversation,’ rather than acting dictatorial,” he says. Since March, Nandui has been huddling with clients and industry leaders to discuss strategies and solutions, and while restaurateurs are proving to be resourceful, they still don’t have all the answers or support they need. “I held a webinar on resilience and Ryan Hardy of Pasquale Jones said of the lack of information on when indoor dining can return and at what capacity, ‘Today there’s a lot of uncertainty and I can’t see too far ahead, so I have set a point in the horizon that I think I need to sail towards, and that way I can get my employees to sail towards it with me.’” 

“The New York City Hospitality Alliance and the New York State Restaurant Association do an amazing job of advocating for restaurants at the city and state level,” he says. To get involved and urge elected officials to identify that point on the horizon, hospitality professionals can join either organization for a fee. There are free resources from both organizations, from surveys and webinars to safety guidelines and updates, available to anyone in the industry. You can also find out how to contact your local representatives to advocate for your business in the year ahead.

And if you find you’re still struggling, visit Nandu’s F & B Business School for business coaching and free trainings to confidently increase revenues so you can take care of your business and life.