Ohio 2020 Econo Ohio 2020 Economic mic Reco ecover ery T y Task ask F For orce ce April 14, 2020 John Barker, President & CEO 1
Ohio Restaurant and Foodservice Industry 2019 • 23,000+ locations • $25.6 billion in sales • 585,000 jobs 10% of Ohio’s workforce Owners, operators, managers, chefs, cooks, servers, hosts, entry-level 2
COVID-19 Impact Incredibly Challenging 5 Weeks Restaurant Sales are Plummeting • Life altering for all humans worldwide Same-store change from YE 2019 through April 1 • Crisis mode for every business • Unprecedented carnage to economy Fine Dining • Restaurant / Foodservice: Crushed first & deepest Casual Dining Fast Casual QSR Delivery -90% -70% -45% -35% 0 +50% New York Times COVID-19 Pandemic was rapidly escalating worldwide and across USA hotspots in early to mid-March Ohio Governor announced closing restaurants on March 15 3
COVID-19 Impact Restaurant & Foodservice Industry • ORA and NRA Surveys Confirmed: 51% of locations closed across Ohio (latest ORA survey) Quick-Service Restaurants sales down -20% to - 40% … surviving on drive thru, carryout + delivery Dine-in sales down - 50% to 90% … many offering carryout 16.8 million Americans have filed for unemployment, huge portion from our industry … hundreds of thousands in Ohio Second quarter economic forecasts: JPMorgan -40% and Goldman Sachs - 32% … stock market wildly volatile • Government Response: For Individuals : Generous Unemployment, Sick Leave-2 weeks For Businesses : CARES Act I, II and III … Trillions of dollars in stimulus/relief including Paycheck Protection Program (PPP) o SBA and Banks overwhelmed o Program does not work for our industry o Crisis is worsening for restaurants 4
Restaurant Industry WE APPRECIATE INITIAL RECOMMENDATIONS 1. Restaurants want to be a pivotal part of reviving Ohio’s economy and Federal - CARES Act, PPP and EIDL we pledge to work with you. State - Deferral of tax filings, BWC premiums 2. We will be prepared for when Gov. DeWine declares businesses may and license renewals; ability to sell liquor reopen. ORA is drafting language that can be used as rules/guidelines for reopening and operating restaurants safely. We will coordinate on this with the (2 ounces cups with lids) Governor’s office, the Ohio Department of Health, local health departments, and the Ohio Environmental Health Association. But Federal programs don’t work for Restaurants 3. From a regulatory perspective , we request the tax, BWC and license deferrals • High fixed costs, small margins, tight cash flows extend long enough for businesses to recover. We would also appreciate actions such as beer, wine and liquor being approved for carryout and third-party delivery being • Significant capital to reopen for inventory, hiring, made permanent, as consumers certainly want this option and it supports sales and training, marketing profits. • Business expected to come back at 50% for dine-in 4. After reopening restaurants, we will partner with ODH and the Division • Owners worried about survival of Liquor Control to help businesses thrive. We need agencies to support businesses meeting compliance requirements rather than overly strict enforcement. 5. As we discuss rules and guidelines , it is important to avoid requirements that ORA focused on priorities: are not crucial to public health or can’t be met with appropriate supplies by 1. Amendments to CARES Act-PPP restaurants , such as thermometers for temperature checking and masks for all employees. We will certainly work with our industry vendors to secure supply lines, 2. Phase IV Requests but this will not happen overnight. 3. Business Interruption Insurance, federal backstop 6. As federal dollars become available to the state , we would appreciate 4. Reopening for Business - restaurant guidelines funding for support such as block grants be made available to restaurant and small 5 business owners, who will desperately need capital to survive.
Ohio 2020 Econo Ohio 2020 Economic mic Reco ecover ery T y Task ask F For orce ce April 14, 2020 John Barker, President & CEO 6
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