"There is nothing fair about COVID19", said Governor Walz today.
The news trickled out today in leaks, and posts, and finally officially with a presser from the Governor: the ban on indoor service at restaurants and bars is extended through January 11th. Outdoor service is once again allowed, at 50% capacity with 100 people max, with tables at least 6ft apart. Tents are allowed as long as they have two walls open, which also applies to igloos. The 10 pm curfew is still intact, and the number of people at a table is limited to 4.
Many were expecting this, at least, but plenty of businesses are still frustrated. Plus, there were two new ingredients added to this giant soup pot of hospitality expectation, within the last seven days, that has churned the mix.
The first is the bi-partisan aid package that was signed by the Governor this afternoon. The whopping $216 million in aid (with a portion for hospitality) is, as the Governor said, not intended to make the industry whole, but hopefully helps get us into the New Year. The relief is focused on extending unemployment benefits, and making direct payments to businesses who are down 30% over last year's sales tax numbers.
While that seems like a reason to celebrate, and for many it is, there are restaurant owners who hope we realize that there are plenty who are struggling that won't be getting a dime. Matt Winter, of PLate on Main in Prior Lake, is one of them. "We did the math, and almost none of us down here in Prior Lake will qualify. And it's not like we have cash reserves or money in the bank. It seems like that metric will really only help those that chose to stay closed this summer. The rest of us, who had to come up with creative ways to survive and keep our employees paid, won't see any extra help. We all work with such slim margins, and had extra costs this year with health supplies, that even a 5% dip hurts us. But we won't be getting a check."
On top of that, Winter says, "Cash flow is drastically reduced right now. To-go is falling off, it's not what it was at the beginning of the year, it's down 40%. And normally we'd get a cash flow boost from gift cards, but that's slow too. I think people are scared we're going to shut down, so they don't want to throw their hard-earned money away." Winter says that the Prior Lake leaders have talked about how they can help the restaurants in their town, because they know how important they are to the culture, "they don't want us all to go."
Supporters of the shut down like to trumpet: vaccines are on the way and aid is coming. But restaurants live on sales that they can measure by the hour, not just by the quarter or the year, and there's no cushion left. Many, many of these small businesses put everything on the line to finance their restaurants, which means they could lose their homes and suffer financial loss that will have massive impact on their family for years to come. It's vital to understand that.
Earlier this spring, during the initial shut downs, Winter and I had talked about him potentially opening against the law in order to survive. What about now? "You know, I totally believe in being safe, and I KNOW we can do it the right way, because we had been doing it the right way for months. And it has been a discussion around here, we have a pretty good group of restaurants that have all banded together to help each other. But I don't think it's the right thing, to open. It's not about defiance and I'm not afraid of fines, but how can we look at our community and say 'we're all in this together' if we do that?"
Because that's the second ingredient in the churn, the places who have pledged to open in defiance of the order.
Governor Walz said today that he thought, in reference to the defiers, that it was a pretty small percentage and that he's happy to see so many Minnesotans doing what they can to help stop the spread, "We have to kill the virus if we want to save businesses." Winter pointed out that it's not easy to be in compliance when others aren't. He pointed to the neighboring Lakeville restaurant Alibi Drinkery, which was open today and packed to the gills with unmasked revelers. "It sucks for those of us that are following the law, for them all to just open."
In last week's chat with ReOpen Minnesota Coalition's Darius Teichroew, he stated that they had a two phase plan, with some restaurants and businesses (mostly outstate) opening today, and more metro spots to follow on Friday. The Wednesday list was published with names, county, and type of business. Teichroew sent me the Friday list, but told me that the businesses have opted to not include their name and only publish their open status on their own channels. There are over 100 restaurant/bar entries on that Friday list alone, which 20+ could be considered within the direct metro area.
One business within the metro that went public with their plans to be open is Nautical Bowls in Minnetonka and Eden Prairie. For them, they say it's not about money as they've been doing fine financially, but were inspired by the coalition, "We have watched businesses across the country make a stand, take risks, and show their support for small businesses and the incredible role they play in this country."
Nautical Bowls is basically a smoothie bowl bar, with a fast casual counter-service model, which was therefore never really ordered to close dining (other than by not allowing people to sit and eat after they ordered). They also quoted a restaurant coalition stance: "For those who want to say that these businesses are putting others at risk ... we challenge you to show us from any science and data that the risk of going to a bar, or working out at a gym, or bowling ten frames, or teaching a small dance class is any more dangerous than going to Walmart, walking through a crowded MOA, or spending two hours in a busy supermarket."
As this is a common drum beat by the defiers, comparing a full-service indoor restaurant dining experience with a retail experience, the state addressed this very thing during the press conference. They talked about the macro science that is understood by most of the world at this point, that it's not the business it's the environment that promotes spread: indoors, with an extended stay and close contact, when not masked.
Walz stated that he doesn't believe that the people who open up in defiance are bad people, he knows that these are desperate times. The aid from the relief package will not be tied to whether or not a restaurant opens up illegally.
Further, he said that he believes this is a much smaller percentage of people than the more than 15,000 who are doing it right. "Nobody's interested in arresting anyone, we'll have to take it on a case by case basis." Attorney General Ellison sent out a message asking the defiers to please reconsider: "Minnesota’s ICU and non-ICU hospital beds are 90% full. Right now, bars and restaurants reopening for on-premises indoor service is the wrong way to solve the economic crisis: it’s dangerous and puts neighbors, loved ones, and whole communities at risk." But he did add they they are prepared, through the courts, to enforce the rule of law. In fact, as I was writing this, the Nautical Bowls people updated their Instagram to alert their guests that they have reverted to takeout only, due to law enforcement's involvement.
For some restaurants, this means taking a pause on the next few weeks or more. Iron Tap in Waconia announced after the press conference, that they would close on Christmas Eve, "With the current closure and restrictions we simply can’t continue until the restrictions are lifted or our federal government comes in with some relief." Takeout is not a long-term option for them, and they hope to come back. They aren't the first to announce this and they certainly won't be the last.
For others who bought $14,000 worth of tenting, or new fire pits like Wayzata's Grocer's Table did, it's game on. They are offering reservations in two hour time slots for their outdoor fire pits through New Years. We'll see how the igloo set goes, but places like The Gnome have already been getting creative with outdoor holiday movies and drive-in dining. If anyone can get down with some winter patio action, it's us. Stay tuned to The FEED on Friday for all the lit action this weekend.
News on the federal front sounds like aid is coming, and yet it also sounds like it won't be enough.
I know that a lot of shutdown supporters are eyeing the list of shutdown defiers so that they might place on them on their NO GO list. I understand that response. I also understand the feeling of some of these defiers that this is their last ditch effort, and that being on someone's NO GO list won't matter if they've closed forever.
All I might say as we close down this unforgettable year with no easy answers, so dripping with emotion on all fronts, is aim your biggest fire towards supporting the restaurant people you love and appreciate. The outcome will be much more satisfying.
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December 17, 2020 at 08:12AM
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Restaurants at the Close of 2020 - Mpls.St.Paul Magazine
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