July 2020 Restaurant Industry News Roundup

Is it August already!? We’re glancing at our rearview mirrors while July fades into the horizon as we work on this month’s restaurant industry news roundup. It’s been a rough year for restaurants. As states try to decrease virus numbers, restaurants who’d previously shuttered in-house traffic are experiencing capacity cuts, but are taking innovative strides to continue to serve their communities. Take this card and follow the steps to access our specials from July! 

British Hospitality Takes a Hit

In 2019, the UK’s hospitality sector contributed £133.5 billion to the economy. At the end of June, 12-month sales totaled £97.2 billion, and in 2020 Q2, the sector sales plummeted 87 percent. UKHospitality and CGA indicate that the numbers are signaling “the pressing need for extensive and sustained support over the rest of 2020 and beyond.”  

Group CEO of CGA, Phil Tate, identifies the industry as “resilient and dynamic.” He did state, however, that “COVID-19 has brought unprecedented and existential challenges,” and of the industry overall that it “needs and deserves the support of the Government and public as it begins the long road to recovery.”  

Consumer Confidence Will Take Time

SafetyCulture and YouGov have released findings from a survey of adults across the country. More than half of Americans feel uncomfortable dining in at a restaurant or bar or staying at a hotel in the months following July. However, the survey also found that hotels and restaurants can complete specific tasks to gain trust and confidence from their customers. 

Bob Butler, General Manager, Americas at SafetyCulture, shares his insights concerning the survey findings:  

• “It clearly indicates where our focus needs to be — safety.” 
  • When it comes to attracting customers and employees, safety will be the main draw. When it comes to brand reputation, how a brand deals with safety will remain a priority. Butler believes that companies need to be transparent with their safety measures and procedures.  
• “The risks of COVID-19 are evolving daily.” 
  • Businesses need to be innovative in their solutions through digitization methods to make cleaning based on guidelines more efficient and easily accessible to employees and the public. 
• Butler identifies three things customers want:

• • Safety is (and should be) the main priority for businesses.
  • A business can cater to the economy and health and still get back to business.
  • The role of a compliance officer is dead in its traditional sense, making way for every business to have a “culture of safety.”  

The End of Blue Laws

When Governor Cuomo issued emergency orders that allowed restaurants and bars to sell alcohol for takeout and delivery in March, the intention was to save staple bars and restaurants across states — specifically New York, Washington, DC, and Texas. Prohibition was repealed over 85 years ago, followed by restaurants being able to obtain alcohol licenses, but not being able to sell alcohol for off-premise purposes. 

Once the pandemic happened, things pivoted quickly. Alcohol sales have always been big business for the restaurant industry. Now though, the ability to sell alcohol via to-go and delivery channels has provided a necessary lifeline for the restaurant industry, including various New York establishments. Like other to-go orders, customers could order cocktails, and the restaurant could deliver it through a contactless experience.  

Some states are realizing that to-go alcohol should last past the pandemic. Michigan legislators have extended alcohol for the next five years, with Iowa becoming the first state to make it permanent. In New York, 86% of consumers want to-go alcohol to become permanent. Across the industry, it’s is an excellent way for restaurants to make money.  

Chick-fil-A Expands Food Trucks to Louisville, KY

Chick-fil-A has expanded from its brick-and-mortar store locations. Louisville now has a mobile unit that’s one of eight in the country. In its initial phases, the food truck will travel to areas in Louisville that don’t have a Chick-fil-A restaurant. According to Chick-fil-A’s food truck director, Nate Smith, the decision to expand operations to Louisville was based on the strong market for the brand. The food truck’s menu will be limited to Chick-fil-A favorites, including the brand’s waffle fries, the Original Sandwich, and nuggets. The goal is for the food truck to serve significant local events around Louisville, like riverfront concerts.

“This food truck is another tool that allows us to expand our reach and serve the great taste of Chick-fil-A in Louisville and surrounding communities who don’t yet have their own Chick-fil-A restaurant,” says Nate Smith. 

Find food truck location details on Chick-fil-A’s Facebook page. 

Conclusion

Have anything for our next restaurant industry news roundup? Let us know in the comments below and follow along to see what’s going on next month. Subscribe to the blog for more interesting restaurant content!

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About the Author

Devyn is the Social & PR Specialist on the Marketing Team. She has a B.S. in Communication and an M.S. in Global Strategic Communication. She liked QR codes (before they were cool) ever since a two-week trip to China. She’s obsessed with true crime and enjoys quality time with her friends and family. Ask her about books she’s read, Criminal Minds, her dog-child, or her favorite cocktails!