Restaurants re-opening, but still hurting

Kristine Hillmer, CEO of the Wisconsin Restaurant Association, says operators have seen a 70-95 % drop sales during the COVID-19 shutdown.

ADRIENNE: A LANDMARK RESTAURANTIS CLOSING DOWN.SCHREINER’S IN FOND DU LAC, INBUSINESS SINCE 1938, IS ACASAULTY OF THE ECONOMIC FALLOUTFROM COVID-1THE FAMILY-OWNED AND -OPERATEDSCHREINER’S SERVED MORE THAN500,000 PEOPLE A YEAR.SOME RESTAURANTS ARE CLOSINGWHILE OTHERS ARE RE-OPENINGAFTER THE MONTHS-LONGCORONAVIRUS SHUTDOWN.AND BUSINESS WILL BE DIFFERENT.PWERE TALKING ABOUT ALL OF THATNOW WITH KRISTINE HILLMER,PRESIDENT AND CEO OF THEWISCONSIN RESTAURANTASSOCIATIOWE APPRECIATE YOU BEING WITH USTODAY.I WANTED TO BRING TO YOURATTENTION THAT WE HAD ARTHURSINK ON THE SHOW.HE ESTIMATED THAT MAYBE 30% OFOUR RESTAURANTS WERE CLOSEDPERMANENTLY BECAUSE OF WHAT HASHAPPENED WITH CORONAVIRUS.WHAT IS THE UPDATE?WHAT ARE YOU THINKING IN TERMSOF THAT NUMBER?MS. HILLMER: THERE IS A GREATPOSSIBILITY THAT THAT NUMBERCOULD STILL COME TRUE.IT HAS BEEN ALMOST THREE MONTHSSINCE EVERYTHING HAS HIT OUROPERATORS.THEY ARE STILL STRUGGLING.EVEN IF THEY CAN DO A REALLYSUCCESSFUL CURBSIDE AND DELIVERYBUSINESS, TO CLOSE DOWN DININGROOMS HAS A HUGE IMPACT.MANY OF THEM ARE SEEING UPWARDSOF 95% DROP IN SALES COMPARED TOPRIOR YEARS.EVEN IF YOU DO A CURBSIDE, ITDOES NOT REPLACE THOSE DOLLARS.ADRIENNE: SOME RESTAURANTS AREOPENING THEIR DINING ROOMS.WHAT ARE THE CHALLENGES?MS. HILLMER: THERE ARE A LOT OFCHALLENGES.A LOT OF OPERATORS HAVE USEDTHIS TIME TO FIGURE OUT WHAT ARETHE BEST WAYS THEY CAN KEEPTHEIR STAFF SAFE AS WELL ASTHEIR CUSTOMERS SAFE?THAT SOMETIMES MEANS A REDUCEDCAPACITY IN THE DINING ROOM.DO THEY CHOOSE TO USE PPE, WHATIS THERE SANITATION PRACTICES,HOW ARE THEY SOCIALLY DISTANCINGTHE TABLES?ALL OF THAT IS BEING TAKEN INTOCONSIDERATION.SOME OF THEM ARE ALSO MAKING THEDECISION THAT JUST BECAUSE THEYCAN OPEN UP DOES NOT MEAN THEYSHOULD.IT DEPENDS UPON THE BUSINESSMODEL AND WHAT IS HAPPENING INTHEIR LOCAL COMMUNITY.IF THERE IS A SPIKE SOMERESTAURANTS ARE CHOOSING NOT TOOPEN QUITE YET.ADRIENNE: SOME AREAS AREREQUIRING REDUCED CAPACITY.HOW DOES A RESTAURANT MA MONEYIF THEY CANNOT FILL THE DININGROOM?MS. HILLMER: THAT IS THEDIFFICULT PIECE OF IT.ON AVERAGE, A RESTAURANT’SPROFIT MARGIN IS BETWEEN 4% AND6%.THAT MEANS 96% TO 98% OF EVERYDOLLAR IS ALREADY SPOKEN FOR.THE PROFIT MARGIN IS VERY SLIM.YOU ADD TO THAT REDUCED CAPACITYAND NOW INCREASES IN SUPPLYPRICES, IF YOU CAN EVEN GETSOMETHING SUCH A BEEF, THEPRICES ARE HIGHER.THAT EATS INTO THAT RESTAURANTCOST MODEL.OH THAT IS MAKING IT VERYDIFFICULT.IT IS A VERY COMPETITIVEBUSINESS.A TOUGH BUSINESS RIGHT NOW.OUR OPERATORS HAVE REALLY BEENTHROUGH THE WRINGER.ADRIENNE WHAT IS YOUR BIGGESTCONCERN ABOUT REOPENING?MS. HILLME OUR BIGGEST CONCERNIS THAT WE WILL REOPEN TOQUICKLY, WE WILL SEE A SPIKE INCASES, RESTAURANTS WILL BEFORCED TO CLOSE AGAIN.WE HAVE ONE SHOT TO GET THISRIGHT AND WE WANT TO DO ITSMARTLY.WE WANT TO DO IT IN A METHODICALWAY AND TO PROTECT EMPLOYEES ASWELL AS THE CUSTOMERS AS THEYCOME IN.WE ALSO HAVE TO COME TO GRIPSWITH THE ECONOMIC REALITYHAPPENING OUT THERE THATRESTAURANTS ARE GOING UNDER.SCHREINER’S IS A GREAT EXAMPLEOF THAT.WE ARE SEEING THAT THERE AREMENTAL HEALTH ISSUES OF PEOPLEWHO ARE STUCK AT HOME, LOSINGTHEIR LIVELIHOODS.WE HAVE STAFF THAT HAVE NOT BEENABLE TO GET UNEMPLOYMENT.WE HAVE A SURVIVAL ISSUE OUTTHERE IN ADDITION TO THE IMPACTON THE BUSINESSES.IF WE DO NOT GET IT RIGHT, ITWILL GET WORSE.WE ALSO HAVE TO COME TO THEUNDERSTANDING THAT AT SOME POINTIN TIME, PEOPLE WILL HAVE TOSTART OPENING UP FOR ALL THEREASONS I WAS MENTIONING.IT IS NOT NECESSARILY GOING TOMEAN THERE WILL NOT BE ANYADDITIONAL CASES, BUT WE HAVE TOMITIGATE THEM TO THE BEST OF OURABILITY.BUT THERE IS NOTHING THAT IS100%.EVEN STAYING AT HOME, GOING TOTHE GROCERY STORE, YOUR EXPOSED-- YOU ARE EXPOSEDWE HAVE TO FIGURE OUT HOW TO DOIN A WAY -- DO IT IN A WAY THATIS SMART.ADRIENNE: YOU ARE ALSO CONCERNETHAT RESTAURANTS MAY GET SUEDPOTENTIALLY.MS. HILLME ANYBODY CAN GETSUED FOR ANY REASON.THERE WILL POTENTIALLY BELAWSUITS WHERE SOMEBODY GOESINTO A RESTAURANT, THEY CATCHCOVID, AND IT COULD BE FROM THERESTAURANTS, THE GROCERY STORE,A LOT OF REASONS, BUT THEY MAYTHEN CHOOSE TO SUE THERESTAURANT OPERATOR.OUR GUIDANCE TO OUR OPERATORS ISWE CANNOT STOP THAT.THERE IS NO LIABILITY WAIVER.IF YOU CAN DEMONSTRATE ANDFOLLOW ALL OF YOUR PLANS TO THEBEST OF YO ABILITY, THAT YOUHAVE REDUCED CAPACITY, DONEEVERYTHING IN YOUR POWER TOREDUCE EVERY RIS THEN THATWILL GO A WHOLE LONG WAY TO SAYI DID EVERYTHING COULD TO MAKESURE THAT PEOPLE WERE SAFE.AND NOT ONLY FOR THE LIABILITYPERSPECTIVE, BUT I THINK IT ISTHE RIGHT THING TO DO.ADRIENNE: WE KNOW RESTAURANTSARE GOING THROUGH SO MUCH RIGHTNOW, SO WE ARE CERTAINLY WISHINGYOU THE BEST.THANK YOU.MS. HILLMER: MY PLEASURE.ADRIENNE: ABSENTEE BALLOT L AT-- BELL APPLICATIONS WILL BEGOING OUT TO WISCONSIN VOT