Why New Restaurants Are Still, Somehow, Opening During the Pandemic

April 30, 2020 Admin 0 Comments

Saddled with debt, mortgages, and payroll, some owners have no choice but to open a new restaurant in the midst of COVID-19

Across the country, the novel coronavirus has closed countless restaurants, temporarily or permanently. Yet, even as the future for food businesses looks dire and restaurants struggle to attain financial support from Congress, new restaurants are opening their doors against economic headwinds. Established names and first-time owners are untangling health and safety requirements and navigating the murky ethical waters of employing staff, all to offer bagels, Vietnamese coffee, Korean fine dining, cheese boards, and pizza to home diners and frontline workers.

“Some people think we’re crazy to have our opening day right now,” says Chen Dien of Coffeeholic House in Seattle. Along with his wife Trang Cao, Dien opened the cafe, which specializes in brewing with Vietnamese slow-drip phin filters, for takeout only on March 17, one day after Seattle closed restaurants for dine-in service. The couple closed the cafe soon after, for two weeks, as the situation grew worse. But after Gov. Jay Inslee extended the stay-at-home order until May 4, they decided to reopen for good, without seating and with guide markers on the floor to ensure social distancing.

“It’s been our dream for many years to open our own coffee shop,” Dien explains. They simply couldn’t let the business die, and remaining closed wasn’t an option. “It’s very hard for a small business like ours to shut down for a few months and not do anything. We still have bills to pay.” Many others are in a similar spot, opening in the middle of stay-at-home orders and social distancing measures because they had little choice.

Amalia Litsa and Joshua Adrian, co-owners of the new Dear Diary Coffeehouse in Austin, decided to open their cafe for takeout on April 4, weeks after the city ordered restaurants closed on March 17. “It’s not like a business just pops up out of nowhere,” Litsa says. “Business loans, personal capital, building out a space for nine months — the business existed well before the brick-and-mortar part of it did.” The partners opened, even while other restaurants around town were closing, partly because they lacked the funds to fully ride out the storm. “No matter what, we’re going to operate at a loss, but even a weak revenue stream would slow that loss,” Litsa says. “It’s our best chance of surviving at all.”

Courtesy Coffeeholic House

Courtesy Coffeeholic House

Even restaurant groups, which could concentrate resources and staff at existing businesses, have decided it sometimes makes more economic sense to add another venue to their rosters. Brendan McGill, chef and owner of Hitchcock in Bainbridge Island, Washington, and sister restaurants in Seattle, had been leasing a space in the Georgetown neighborhood for seven years before soft opening Panino Taglio on March 21. The cafe, an extension of his downtown restaurant Bar Taglio, offers take-and-bake pizzas alongside Italian pantry items.

“I had been paying for an empty space, so I figured doing some business in there, especially if it made sense in relation to the other businesses, why not activate it?” McGill says. The team limited expenses as much as possible for the low-lift venture. McGill borrowed equipment from a friend’s warehouse during build-out and employed a delivery person in-house to avoid paying fees to delivery platforms. McGill adds, “The landscape could change constantly as we attempt it, but that’s not much different from the restaurant business anyway.”

Without foot traffic, new business owners must rely (even more than usual) on social and digital media to spread the word about opening. “There’s a lot of noise on social right now, but everyone is just at home glued to their phones,” McGill says. “I think there’s good reach right now.” He points out it’s tricky to thread the needle on messaging, encouraging people to pick up food in person while government and health authorities are telling people to stay home. But Panino Taglio offers CSA boxes, wine, prepared items, and pantry goods all in one place, letting shoppers stock up on all their needs in one fell swoop. “We’re just trying to encourage people to do it from a local foods company rather than one of the big chains,” McGill says.

Andrew Dana, co-owner of Call Your Mother in D.C., actually wanted to keep things quiet while opening a second location of the bagel shop in Capitol Hill on April 15. “This isn’t the opening where you want tons and tons of people there. You want it to feel safe,” he says. But word spread quickly through the neighborhood listservs and from there to local media. “Every food blog in the city has picked up on it because it’s not like there are a lot of other restaurants opening.” To temper the hype and keep the operation safe, he has been cutting off orders after 1,600 bagels, often the day before people can even pick up.

Beautiful Rind, a specialty cheese cafe in Chicago, passed all of its inspections on March 19, the day before Illinois Gov. Jay Pritzker issued a stay-at-home order. Cheesemonger Randall Felts officially opened his business on April 10, even as work crews continued touch-ups on the space. Felts originally planned to service the local community during the first year of business, then launch digital offerings in year two to expand customer reach. Now he says his local customers are digital too, so he’s accelerating his web plans.

Beautiful Rind debuted by offering digital classes: Felts delivers all the cheese boards himself (“it’s actually how I started in the restaurant industry, delivering sandwiches,” he says, noting how he’s come full circle), then returns to the shop to lead customers through a tasting. “The big challenge for me right now as a business owner is quickly learning how to be a website manager or a webinar host,” Felts says, though he admits it’s not too different from other ways he’s had to pivot as a business owner — he’s a pretty good plumber, too.

That scrappy spirit has allowed small businesses like Dear Diary and Coffeeholic to open with little or no staff, delaying hiring until they can consistently afford full staffs. At Dear Diary, Litsa and Adrian are only opening the shop five days a week. The buffer allows either partner to step in if their one barista becomes ill. But for larger operations, payroll often necessitates opening.

On April 10, Corey Lee of three-Michelin-starred Benu in San Francisco launched a preview of the hotly awaited San Ho Won, a Korean concept that was announced last fall. The restaurant was supposed to open this summer, but its recent takeout-only debut, in the form of a set menu, is being orchestrated from the Benu kitchen. Lee tells Eater via email that the business is providing healthcare and a meal program to all furloughed employees across his restaurant empire, as well as financial aid to international workers on visas who don’t qualify for unemployment benefits. “We felt like we needed to try something if we were to sustain everyone’s situation for an unknown period of time,” he says. Opening San Ho Won now as a takeout concept gives staff a chance to perfect recipes for the forthcoming restaurant, and allows Lee to funnel money directly to his workers.

Dana similarly had staff in mind when he moved ahead with opening a second Call Your Mother. While the original location is only doing 10 percent less retail business at the moment, he says, the business makes almost half its revenue from farmers markets and catering, which have dried up completely. The shop hasn’t cut employee salaries at all, though, so they needed the second location to make up the difference in revenue.

Before opening the second location, Dana sent out a survey to the team asking employees how they got to work, whether they lived with high-risk individuals, and whether they wanted to work at all. The responses informed managers’ decision to open and allowed them to identify employees who could safely walk to the new location rather than taking public transit to the original shop. They’re also paying some employees to work from home, helping maintain the new online ordering system and providing customer support over the phone.

New business owners may be excited about big plans for the future, but for now they too must adjust expectations. “There’s a lot of good stuff we want to launch, but we’re waiting for the best timing,” Dien says, though he remains optimistic. “We’ve been waiting for more than a year already, so it’s okay to wait for a little bit more.” In the summer, he hopes Coffeeholic can offer more drinks, like watermelon juice, coconut coffee, and lychee or passion fruit tea.

Both the original Call Your Mother shop and the new one are limiting offerings to streamline operations for reduced kitchen staff: The new location only offers whole bagels with cream cheese. Felts also cut down offerings, and he had to pivot to feature domestic cheese and charcuterie as the pandemic affected international trade with European suppliers. “We’ve been able to transition more to those guys and spread the love as best we can,” he says. Felts has also worked to incorporate small, local partners, offering online pairing classes featuring beer and cider makers.

Randall Felts

The Dear Diary menu reflects shifting supply in Austin, too. “There didn’t used to be this much demand for growlers,” Litsa explains, “but now every coffee shop in town is offering cold brew growlers, so they’re really hard to get from any distributor.” She and Adrian looked for alternative packaging on Amazon and came upon plastic honey bears, popular among home beekeepers. They now package cold brew in 22-ounce bears and to-go syrups in 8-ounce versions.

As fellow coffee shops have closed, though, Litsa has also noticed the opposite problem: local bakeries and caterers with nowhere to sell their goods. Rather than spread small orders between a lot of suppliers, Litsa has decided to concentrate on developing quality relationships through substantial orders from a select few partners.

Litsa argues that new restaurants are particularly flexible to the changing situation. “In a way we’re blessed by having less business because it gives us more time to wrap our heads around what to do next and we can experiment without pissing off as many people,” she says. “By the time we have more business, either because corona has lifted or our economy has morphed, we’ll be really frickin’ good at what we do.”

Litsa brought her sewing machine to the cafe to produce masks during slow hours; she sells the masks alongside coffee. There are plans for goodie boxes of art supplies and postcards. “Corona is indefinite. It could be a year. It could be two years. It could be the economy is forever changed. We just need to accept that now and adapt,” Litsa says. “We’re bleeding over the edges of a strict coffee shop definition.”

Even as they work constantly to adapt to the rapidly changing situation, many argue their businesses are positioned to provide hope and positive energy, both in demand as much as food. “It’s a nice reminder that there’s something to look forward to,” Lee says of the pop-up, “instead of offering altered versions of existing concepts and being reminded just how much our lives have been ruptured by this pandemic.”

That positivity flows in all directions. Many owners are passing along that goodwill through charity work, sending food and drinks to hospital workers or those in need. Customers also provide owners with the necessary confidence to open and stay open.

“I know I seem a little crazy to be opening a restaurant right now,” Felts says. “But when people come in and thank me for doing that and they’re excited to see the food, to get some cheese and just have a little happiness, it makes it totally worth it.”