The coronavirus has caused a glut of supply at restaurants and their distributors, and a shortage at ... [+]
Last week, the National Restaurant Association predicted industry sales to decline by $225 billion during the next three months, which would prompt the loss of between five and seven million jobs.
The coronavirus has already wreaked significant havoc on restaurants, and even the most successful concepts have been hemorrhaging sales and laying off employees in droves.
Although many restaurants have aggressively shifted from dine-in to off-premise-only models, plenty of consumers remain spooked nonetheless. A new report from Datassential shows that nearly 30% of consumers say they are avoiding eating out altogether. A number of restaurants have already gone dark.
In an attempt to survive, some are evolving into bodega-like stores.
Considering the ubiquitous photos of empty grocery shelves, such a transformation could be quite an opportunity for restaurants navigating this unprecedented challenge. If the supply is there, why not?
That’s exactly why Los Angeles-based Dog Haus Worldwide has launched a new “Haus Market” model, opening up its pantry to provide some essential ingredients that guests can purchase and prepare at home–gourmet hot dogs, burgers, sausages, tater tots and Kings Hawaiian rolls among them.
“Haus Market is for both our customers and our business. The business needs to survive this crisis, and it’s important for our customers to realize the country isn’t going through a food shortage. Grocery stores are being decimated, but restaurants and their distributors are sitting on so much product that it would be a shame to not find a way to still feed our guests,” said André Vener, co-owner of Dog Haus Worldwide.
So far, nine California locations are participating, as well as the locations in Yuma, Arizona; Colorado Springs, Colorado; Bethesda, Maryland; and Clifton Park, New York. An up-to-date list of participating locations and item pricing is available online.
Vener said the chain was able to morph quickly by adding Haus Markets to its existing point-of-sale system, ensuring the right packaging for orders and implementing procedures at participating locations. Haus Market products are available for curbside and take-out only.
“We had to look at the products we use and create a menu that would help our guests. Restaurants carry a large number of the essential items needed at homes, as well as some fun and unique ones. In times like this you have to try and recreate some semblance of normal life within your home,” he said.
Dog Haus isn’t the only brand “finding a way to still feed its guests.” Some Texas Roadhouse locations are selling raw meats, uncooked potatoes, steak seasoning and its signature bread, for example. A Columbus, Ohio-based Texas Roadhouse employee posted the following message in a “Support Central Ohio Restaurants” Facebook group over the weekend: “We know grocery stores are absolutely crazy right now and we are trying to make it as easy as possible to stock up.”
Options sold from that restaurant include small, 6 oz. sirloin steaks for $4.50, a 23 oz. porterhouse for $18, a box of steak seasoning for $4.99, 5 lb. sweet potatoes for $2.99, fresh baked bread by the dozen and honey cinnamon butter.
Dan Simons, co-owner of Farmers Restaurant Group in Washington, DC, announced on Twitter Thursday that his restaurants will become “Founding Farmers Market + Grocery.” The company will deliver and offer curbside, “the things you’d want from your favorite corner bodega. We are spinning up the new biz right now … think eggs, chicken salad, paper towels, booze,” he tweeted.
There are nine locations listed on the Farmers website, in DC, Maryland, Virginia and Pennsylvania.
Juice Press, a clean eating concept with more than 50 stores in New York, Connecticut and Boston, launched a new online supermarket delivery business Thursday, called JP Grocery.
In a Facebook post, the company wrote: “We have quickly expanded our product selection to offer more traditional organic grocery items such as oat milk, almond milk, fresh produce & more. If you live in the Manhattan or Brooklyn area, please click the link in bio to order your favorite JP snacks, soups, meals, juices, and shots available for delivery in bulk (with bulk pricing), along with our new grocery staples.”
Also, Great Harvest Bakery Café locations have maintained their made-to-order baking schedule to help solve the bread shortage at some grocery stores. While each bakery café has its own unique menu tailored to the community it serves, all include bread with daily-milled Montana wheat and a variety of baked goods.
“Providing a safe environment for our customers and employees while offering necessities such as fresh bread is our top priority,” CEO Mike Ferretti said in a statement. “Our franchisees want to give people a convenient and local option for freshly-baked bread and made-to-order meals, so customers can take care of their families at home without stressing about the availability of bread and nutritious options.”
And, as this is a global pandemic, international concepts have made this shift as well. U.K.-based Leon is transforming its 75 restaurants into mini supermarkets. Both the restaurants and the company’s website will sell “restaurant-quality ready meals, sauces, meats and other food that customers can store and eat at home,” according to MetroUK. Meanwhile, KFCs in China are delivering raw food for home-cooking to boost revenue as part of its recovery.
It could be awhile until the supply/demand model finds its balance again in the restaurant space. Until it does, this market-type transition is an innovative workaround.
“The restaurant business is all about hospitality, and Haus Market is another example of that,” Vener said. “We’re proud of the quality ingredients we put into our food and believe that making them available for home use is the right response to the current situation.”
