Kate Edwards & Company | Business & Leadership Consulting

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Is 25% Worth it?

On Tuesday September 8th, Governor Cuomo agreed to allow indoor dining at 25% capacity beginning at the end of the month. While not a huge win, this was an important step forward in the quest for reopening restaurants and bars in NYC. Reopening is essential to our industry and is essential for our collective existence and continued success. Without indoor dining the hospitality industry as a whole will likely crash; we need indoor dining despite the inherent challenges that it presents. 

So is reopening at 25% worth it? I've been disecting this question for a client and have confronted every aspect of the possibility. For some operators 25% presents an opportunity to keep the brand alive and maintain connection with their guests. For others 25% is not feasible; it is not worth the investment that is required  to reopen safely. After spending some time wrangling this dilemma I believe that there are 3 questions that you must ask yourself prior to making this decision: 

1. Can I provide the same experience with minimal compromise? 
For most restaurants, the guest experience is essential to their brand. And this experience is dependent on a number of things: the food, the service and the environment. But can you offer your experience even if it means limiting your menu and staffing model? For some fine dining restaurants the answer is no. The experience requires a minimum of staff members in the kitchen and dining room; opening without the full experience can damage the brand. But if you're a smaller restaurant known for an essential menu item that can be prepared and served by a limited staff then you may find opening at 25% a worthy endeavor. 

2. Does 25% capacity enhance my current offerings? 
If you've been serving outdoors and your delivery and pick-up business is profitable then opening more seats indoors is a natural extension of your dining experience. This creates 3 areas of profitability: outdoors, indoors and to-go. However, if you've been closed, reopening may just be too big of a lift. If so, I recommend using this time to update your interiors (with Plexiglas barriers as needed and improved air filtration) and get yourself ready to open when 50% indoor capacity is allowed. 

3. Does 25% capacity mean 25% income?
Easy answer: no, it doesn't. If you're going to open your doors for indoor dining you must take this opportunity to maximize every seat and maximize the income potential for your business. Offer a limited but profitable menu, create easy upsells (wine pairings, sides, and desserts) and focus your beverage program on the most profitable bottles and cocktails you have. Train your team to  enhance the guest experience, indulging guests in your food, service and genuine hospitality. Work to create and maintain your guest relationships so that they are inspired to return and maintain their loyalty to your restaurant. And try your best to coax as many people as possible into those very valuable seats. Remember restaurant turns? Now's the time to persuade your guests to arrive earlier or later to enjoy the privacy and comfort of your dining room. 

And remember: when you reopen with 25% capacity this creates a very different experience for your guests. Shine a light on how special this moment is: a private time to share in a meal in your restaurant. Take photos of your dining room with less tables and show off the luxury of space that NY restaurants rarely enjoy. 

Ask yourself these 3 questions now so you can be prepared to open or to wait until more seating is possible. And remember, it was your voices, powerful and strong, that were collectively raised that made this reopening possible. Don't stop demanding more from your government, in NYC and across the country. Don't stop raising your voices and concerns. And don't stop collaborating with your colleagues, friends and neighbors in hospitality to get through this time. I'm here for you, we all are.