Reco ecover ery T y Task ask F For orce ce April 14, 2020 - - PowerPoint PPT Presentation

Ohio 2020 Econo Ohio 2020 Economic mic Reco ecover ery T y Task ask F For

• rce

ce

April 14, 2020

1

John Barker, President & CEO

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

• Life altering for all humans worldwide
• Crisis mode for every business
• Unprecedented carnage to economy
• Restaurant / Foodservice: Crushed first & deepest

Ohio Governor announced closing restaurants on March 15 COVID-19 Pandemic was rapidly escalating worldwide and across USA hotspots in early to mid-March

3

Restaurant Sales are Plummeting

Same-store change from YE 2019 through April 1

Fine Dining Casual Dining Fast Casual QSR Delivery

• 90% -70% -45% -35% 0 +50%

New York Times

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)

• SBA and Banks overwhelmed
• Program does not work for our industry
• Crisis is worsening for restaurants

4

Restaurant Industry

WE APPRECIATE

• Federal - CARES Act, PPP and EIDL
• State - Deferral of tax filings, BWC premiums

and license renewals; ability to sell liquor (2 ounces cups with lids)

• But Federal programs don’t work for Restaurants
• High fixed costs, small margins, tight cash flows
• Significant capital to reopen for inventory, hiring,

training, marketing

• Business expected to come back at 50% for dine-in
• Owners worried about survival
• ORA focused on priorities:
• 1. Amendments to CARES Act-PPP
• 2. Phase IV Requests
• 3. Business Interruption Insurance, federal backstop
• 4. Reopening for Business - restaurant guidelines

5

INITIAL RECOMMENDATIONS

1. Restaurants want to be a pivotal part of reviving Ohio’s economy and we pledge to work with you. 2. We will be prepared for when Gov. DeWine declares businesses may

• 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 Governor’s office, the Ohio Department of Health, local health departments, and the Ohio Environmental Health Association.

3. From a regulatory perspective, we request the tax, BWC and license deferrals

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 made permanent, as consumers certainly want this option and it supports sales and profits.

4. After reopening restaurants, we will partner with ODH and the Division

• f 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

are not crucial to public health or can’t be met with appropriate supplies by restaurants, such as thermometers for temperature checking and masks for all

• employees. We will certainly work with our industry vendors to secure supply lines,

but this will not happen overnight.

6. As federal dollars become available to the state, we would appreciate

funding for support such as block grants be made available to restaurant and small 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

• rce

ce

April 14, 2020

6

John Barker, President & CEO