Restaurant Industry News

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Articles from The Insider’s Report archives go back over several years. Some articles may include date-sensitive information or other information that has changed over time.
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The world has turned topsy-turvy since the second half of March 2020.  The restaurant industry shut down and so did Kallas.

Kallas is back up and running at full capacity even though the restaurant industry is still either closed or operating at a limited capacity.

Every quarter for 35 years I have published The Kallas Insider’s Report for restaurant owners without missing one – until May 2020.  Instead of a newsletter, our limited staff at Kallas issued 22 E-blasts letting our clients know on a day-to-day basis what was happening regarding government programs that could help.

As many of you now know, the rules for PPP and EIDL and the other government programs shifted almost on a daily basis.

Restaurant owner’s strategies for coping and planning were also shifting as rules changed.

As I write this, almost the entire lower peninsula is in stage 4 of Governor Whitmore’s 6 phase plan.  Phase 4 is defined as; “cases, hospitalizations and deaths are declining”.  During Phase 4 restaurants can reopen to dine-in service but servers must wear masks, customers must be distanced and restaurants can only fill to 50 percent capacity. 

Phase 5 means new cases continue to decline with outbreaks quickly contained.  Phase 6 is Post Pandemic meaning the pandemic is over and infections fall to near zero.  In my opinion, the best we will ever do is Phase 5.  Phase 6 will not come until a vaccine is readily available and government officials can tolerate a consistent low level of infections such as with the flu or other common viral infection that we live with on a daily basis.

The deadline for applying for PPP was August 8.  The period for applying for the Wayne County Back to Work Grant was closed July 10.  And the Michigan Small Business Restart Grant closed August 5.  The good news is you may still apply for the EIDL loan.  The EIDL loan terms are very favorable.  30 year amortization and 1 % interest.  Call our financial partner Eric at 248-924-2410 for more information.

Congress is still debating another stimulus program including some excellent provisions specifically for the restaurant industry.  Unfortunately, as of today, they are nowhere near in agreement about what will be in the final bill.

Lately I have been traveling for business and eating out.  From conversations with restaurant owners in Michigan and elsewhere, I can see most restaurants are coping with carry-out and distanced dining.  Employees are coming back.  People are desiring to eat out again.

The problem is the fear factor that has been generated by media and government officials.  Will they turn it around and put as much energy in promote eating out when we hit Phase 5?  And when will that be?  At this point, we do not know.  So, the best we can say and do is to survive the next few months until the election which may change things for the better or a vaccine is available.


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