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In it Together: taking on the insurance industry with Naomi Pomeroy & Robert J. Nelson

OpenTable’s webinar series, In it Together, tackles key topics facing the industry during the COVID-19 crisis. What does hospitality look like in a time of emergency? How can we support our communities today, both financially and emotionally? Hosted by OpenTable’s leadership team, the platform brings together restaurant leaders and experts to foster conversation and share advice during uncertain times. Register for free for upcoming webinars.

After months of shutdowns due to the coronavirus pandemic, restaurants have looked to their insurance policies for financial help – only to be denied coverage for claims. In response, many operators are taking legal action to recoup what they feel they’re owed.

In this week’s In it Together discussion, OpenTable’s Jenna Swigert spoke with Naomi Pomeroy, the chef and restaurateur behind Portland’s Beast, and her San Francisco Bay Area-based attorney Robert J. Nelson, of Lieff Cabraser Heimann & Bernstein, LLP. In conversation, they delved into Pomeroy’s class action lawsuit and the steps she’s taken against her insurance company, as well as your rights as a restaurateur and what “business interruption” really means.

“I’ve been really thinking about the industry overall and wanting to make it a better industry in the future,” said Pomeroy. “The only way to do that is if we have an industry to make better, and that means holding insurance companies accountable. I’ve been paying into this [policy] for the 13 years I’ve been open – for me, it’s a matter of principle.”

Why restaurants are taking action

Naomi’s restaurants, Beast and Expatriate, are both tiny establishments, and Beast specializes in prix-fixe, communal dining. When the government ordered restaurants to shut down in March, she had to close both spots completely. After more than a decade of earning close to $1.5 million in revenue, suddenly her income was zero – “through no fault of my own,” she emphasized.

When her insurance company rejected her claim, a friend connected Pomeroy with Nelson and his team at Lieff Cabraser, who have spent the past 30 years suing large companies in industries like pharmaceuticals, oil, and tobacco. In the case of Pomeroy and other restaurateurs, Lieff Cabraser decided to get involved because they saw people being taken advantage of.

“Folks have been paying business interruption insurance for many years, and insurance companies are saying, ‘sorry, you’re not covered,’ no matter the policy,” Nelson explained. “We felt strongly that people had been paying these premiums, and finally an occasion had arisen that required them to close – they should be entitled to whatever their insurance policy provides.”

What they’ll argue

While attorneys’ arguments will vary between policies, companies, and clients, there are a couple of key points Nelson hopes to communicate.

The first is that COVID-19 is not necessarily the cause of restaurant closures – instead, it was civil authorities that ordered businesses to shut down. Thus, it’s the government’s action, not the pandemic itself, that led to business losses.

Another argument concerns the question of physical damage to property. Insurance companies insist that unless an operator had COVID-19 in their restaurant, they did not suffer physical damage. Nelson’s point of view is that the same operator did suffer loss of use of their property, since they were ordered to close. Since an overwhelming majority of policies address physical damage or loss of use, he believes the argument has the potential to succeed.

How to get involved – and what’s required

With restaurateurs pulled in a million different directions, time and money are precious. Pomeroy shared that joining the lawsuit required little of either: in total, she’s only spent a few hours talking to attorneys and sending over documents, and she pays nothing unless she wins the suit. “We don’t get paid unless Naomi gets paid,” Nelson said.

As a first step, Nelson recommends talking to an attorney, regardless of the policy you have. He’s working with some restaurants that have business interruption insurance and virus exclusions and others that don’t, so don’t worry that your policy or circumstance precludes you from taking action. An attorney can advise what makes your individual policy more or less favorable for a case.

From there, you’ll need to tender a claim under your policy, which the insurance company will deny. Once an attorney has the tender and denial letter, they have what they need to bring a lawsuit against the company.

It’s also important to know that a class-action lawsuit isn’t necessarily your best bet. A judge might not want to certify the class action, or maybe your insurance company is different from the ones currently being sued by a class. Again, an attorney can advise if it makes sense to bring your own case or join an existing one.

In general, Nelson said a class action is preferable “because it’s important to protect as many folks as we can.” Also, know that you don’t give up any potential gains by being part of a class. “Naomi is not going to get any less as a class representative – any settlement is based on her revenues and what she lost and what we can prove.”

What to expect

Right now, it’s still early days for insurance lawsuits, and it’s impossible to know what will happen. So far, two decisions have come down, neither of which are helpful for restaurants – but those are too few, early, and opaque to predict the future for these cases in court.

Nelson said his team is filing several insurance-related lawsuits each week, and while he can’t make any promises that they will prevail, he’s committed for the long haul. “I wouldn’t get into it if I didn’t think there was a reasonable chance of success,” he said. “I’m hopeful we’ll be able to provide relief to the many restaurateurs out there who are struggling through no fault of their own.”

Courts, like restaurants, have been affected by the pandemic. Lawyers are not holding jury trials, and courts are on hold throughout the country. When they do reopen, criminal cases have priority. Nelson would love to see results from these cases in 2021, but realistically he thinks decisions will come down in 2022.

For Pomeroy, the timing isn’t the point. “I paid for a service for the entirety of the time my business was open, and I haven’t received what I was promised,” she said. “I’m happy to wait it out and keep having these conversations. If a few people listening today join a class action or do an individual suit, our jobs have been done. We have to make a lot of noise.”

Learn more by downloading the guide to Justice for Restaurants by Lieff Cabraser Heimann & Bernstein.

In it Together: reinventing the industry with Andrew Zimmern & Rohini Dey

OpenTable’s webinar series, In it Together, tackles key topics facing the industry during the COVID-19 crisis. What does hospitality look like in a time of emergency? How can we support our communities today, both financially and emotionally? Hosted by our COO Andrea Johnston, the platform brings together restaurant leaders and experts to foster conversation and share advice during uncertain times. Register for free for upcoming webinars.

The only constant for restaurants during the coronavirus pandemic is change: closures, partial reopenings, new regulations and protocols, and (in some cases) re-closures. Operators have been forced to adapt at lightning speed, from food and beverage programs and business models to guest interactions.

That’s a tremendous burden on restaurants – but it may also present an opportunity. In this week’s In it Together discussion, OpenTable’s Andrea Johnston spoke with James Beard award-winning chef, TV host, and social justice advocate Andrew Zimmern and restaurateur, James Beard Foundation Trustee, and women’s advocate Rohini Dey, PhD. Together, they explored the future of the restaurant industry and shared ideas on how to take this moment to reflect and re-emerge stronger than before.

“Food people are the best people in the world,” said Zimmern. “Even when our own house is burning down, we’re still trying to think of ways to help the people who are in the building with us. Every month I see new reasons to be hopeful.”

Reinventing… the menu

Dey said she had always offered entrees grudgingly at her Chicago restaurant Vermilion, which melds Indian and Latin American cuisines, preferring formats that allow diners to taste a variety of flavors. After reopening this month following the COVID-19 closure, she’s finally offering a menu that suits her style: more small- and medium-sized plates, unbundled accompaniments, and less ceremony overall.

“Now it’s all about what the guest wants,” she said. “Not the chef model.”

Additionally, her young, diverse team has been actively involved in recent protests for racial justice. Together, they introduced Beyond Borders, a series spotlighting phenomenal cuisines that have historically been marginalized in the U.S.

Reinventing… the hospitality

Zimmern is involved in a number of restaurant businesses, and each has responded differently to the pandemic – one shutting down entirely and others focusing on contactless delivery, takeout, and patio dining. “We have to engage with the diner in a new way,” he said.

His five-step plan for the future? “Save the cash, pivot, pivot, pivot, pivot.” Instead of fixating on when things go “back to normal,” he advised thinking of this time as an opportunity to be creative in terms of operations.

As an example, Zimmern pointed to robotics. A couple of years ago, he was Twitter-shamed for profiling a restaurant that used robotics. Today, hundreds of robot-assisted restaurants are on the rise as a strategy to facilitate contactless food delivery. “Everything should be on the table to maximize dollars.”

Reinventing… the business model

With restaurant revenues slashed, the question of how to maximize dollars is top of mind for chefs and operators. Many have already renegotiated leases, reduced the size of their team, and moved to leaner, more efficient menus. What now?

Dey listed four ways restaurants can adapt their business models to thrive in the future: delivery and curbside service; off-site dining, including pop-ups and collaborations; retail products, such as grocery; and experiences, moving food service into unexpected spaces like art galleries.

Zimmern agreed that with more people cooking at home, grocery and retail present growth opportunities. “Everyone’s saying, ‘where do I get that rice, or that pot?’ The ready-to-eat space has a lot of promise.”

Reinventing… the supply chain

Not only chefs, but small farmers and purveyors are struggling to stay afloat during the pandemic. Zimmern noted that with the government banning some work visas, “there will be no one to pick tomatoes in Tennessee or crabs in Maryland or grapes in California.” He called for more protection for immigrant workers.

Additionally, many small farms raise specialty products (think Wagyu beef) that are not available in supermarkets but do go to restaurants. “We need to think about not only what we are raising but where we are serving it,” Zimmern said.

Take seafood, for example. According to Zimmern, 75 to 85 percent of seafood that’s harvested is sold in restaurants, not markets. “The seafood industry has basically gone dark,” he said. Maintaining a healthy supply chain throughout and beyond the coronavirus pandemic will require awareness, action, and resolve from the food industry.

Reinventing… the pay structure

Despite living in survival mode, social justice is still top of mind for restaurant owners and employees. Dey moved away from the tip credit model in her restaurant, aiming for more equity across the front and back of the house, and also plans to introduce a surcharge to invest in employee education. “We want to pay our employees better despite the higher cost,” she said.

Zimmern is encouraged, too. He predicted that in a few years, the pay structure and financial equity structure in restaurants will be radically different from the current reality.

The coffee trade makes a good case study. Zimmern explained that Starbucks was able to grow because of its fair trade policy, and customers got used to paying $4 for a cup instead of 50 cents. “We’re going to see the same thing in this country when it comes to food,” he said. “Gone are the days when we deflate the cost of a menu item. We’re going to have to pay farmers what it costs for a chicken and pass that onto the customer.”

Both Zimmern and Dey indicated that now is a time to be innovative and bold, not fearful. “The whole creative destruction right now gives us a degree of freedom,” said Dey. “I’m taking my chances.”

In it Together: reopening and the guest experience with Lynn Juang & Juan Correa

OpenTable’s webinar series, In it Together, tackles key topics facing the industry during the COVID-19 crisis. What does hospitality look like in a time of emergency? How can we support our communities today, both financially and emotionally? Hosted by our COO Andrea Johnston, the platform brings together restaurant leaders and experts to foster conversation and share advice during uncertain times. Register for free for upcoming webinars.

Across the globe, restaurants are slowly opening their doors to diners, whether through pickup and delivery services, partial-capacity dining rooms, or outdoor spaces. For many operators, that means adopting their business, brand, and concept to a new and constantly changing reality.

In this week’s In it Together discussion, OpenTable’s Andrea Johnston spoke with Lynn Juang, COO of hospitality creative agency Brand Bureau, and Juan Correa, the New York restaurateur behind Llama Inn and Llama San. Together, they dove into best practices for reopening – keeping brand and design top of mind.

“We are social beings – we crave connection and interaction,” said Juang. “Restaurants, bars, and cafes are here to stay in some way, shape, or form. Why do people go out to eat and drink? We have to identify those core drivers and start to think about more creative ways to answer [that need] in a new situation.”

Adapt your menu to new circumstances

“We don’t like the takeout business,” Correa laughed. “But it’s going to be part of the new normal. We’re going to have to live with that and get much better at it.”

When NYC restaurants were first ordered to shut down, Correa’s top concern was for his staff’s safety and financial well-being. A few weeks ago, he started takeout and delivery so that he could keep paying employees and keep the businesses afloat. That shift required considerable changes to his Peruvian menu, crafted by his chef and partner Erik Ramirez.

“Erik cooks in a specific manner, and traditionally our food hasn’t traveled very well,” he said. “We were nervous about customers receiving something that didn’t meet [our] standards.” They shortened their menus to highlight dishes that would travel well (think quinoa salad over ceviche) and reduce food waste. The updated menu also reflected a range of prices to accommodate a wide audience of guests.

Be as nimble and flexible as possible

Juang’s advice to clients has been to treat this period as one long friends and family preview – to test a concept, see what happens, and be ready to test something else. Gauge how guests are responding to new offerings, and how they’re interacting with your space, food, and packaging. Solicit feedback and react to it.

“Some clients want to dip their toes into takeout, or open their façade to the street,” she said. “It can’t be at a high cost, because in a couple of weeks the guidelines might be different, or there could be another lockdown. It’s a hard balance, and being patient and flexible is key.”

Because future regulations remain uncertain, Juang prefers light lifts over big ones. Her clients are layering in new sanitation stations and maximizing space between tables, and some are even experimenting with design solutions like modular partitions and screens. But since any solution may have to be temporary, now may not be the time for a full redesign.

Reconsider staff roles and processes

For Correa, reopening means learning new health guidelines, including increased sanitation of surfaces, social distancing, staff health checks, and more. It also means rethinking their employees’ functions and responsibilities.

At Llama Inn, it’s all hands on deck – everyone pitches in with all tasks. At Llama San, roles are more precise, with one staff member clearing tables and another running food. For Correa, the latter model feels more appropriate to this moment. “How do we craft roles so we can minimize the exposure a given guest has to our staff?” he asked. He is looking at ways for guests to interact with only one or two employees per visit.

With evolving roles comes new processes. For example, guests at Llama San and Llama Inn will receive a single disposable menu printed front and back, along with a digital menu option for those who prefer not to touch a menu. Instead of a massive wine list, guests will see an abbreviated wine list that’s updated weekly.

Ultimately, these changes come down to learning to be hospitable while also being efficient. “With more options in front of them, it’s harder for guests to make up their minds, and they have more questions for servers,” he added. “We want to provide all the hospitality, but we also want to limit the time of exposure.”

Tell your story through a new medium

In addition to being a standout chef, Ramirez has excellent taste, Correa said. His partner brought in bamboo packaging for their takeout orders to make sure the food is presented well, and also prints cards that explain each dish – the ingredients, components, and how to assemble or reheat it if it gets cold.

“Our food is Peruvian and has a lot of context – clients are not necessarily familiar,” Correa said. For example, Llama Inn’s Lomo Saltado features hanger steak, a scallion crepe, and toppings like avocado and rocoto crema and is intended to be assembled before eating. “We’re just starting, but we’re trying to learn and listen to what guests are telling us.”

Communicate safety measures with humanity

For many operators, balancing the sterility of sanitation procedures with warm hospitality poses a challenge. Juang recommends a messaging approach that blends transparency and honesty with vulnerability.

“This is all new for everyone,” she said. “It’s being honest about what we know and what we don’t know, and what we’re doing based on the information we have. That brings humanity to communications. And that’s what we’re looking to do – to rebuild trust with everyone walking through our doors and eating our food and drinking our drinks.”

Start with a tight, well thought-out operation, and layer on personality around that. Also, be clear that safety is a two-way street, and restaurants have expectations of guests, too. That doesn’t mean plastering signs on every wall reminding guests to wash their hands, it means straightforward, warm messaging emphasizing that we’re all in this together.

Women in food and beverage weigh in on a decade of change

Today marks International Women’s Day, a perfect time to celebrate the women pushing the food and beverage industry forward. Appropriately, this date also marks the last event in a special series that we at OpenTable have been proud to support: a 10-year anniversary celebration for Frances, Melissa Perello’s beloved San Francisco restaurant.

The series featured 10 dinners, all hosted by women chefs, winemakers, and sommeliers from across the nation. In the spirit of honoring the smart, creative, talented women who are shaping the future of the restaurant world, we asked the remarkable participants one question: What’s the biggest or most exciting change you’ve seen in the industry in the past decade?

Here’s what they had to say.

#MeToo

“The long-overdue #MeToo movement is the cause of a tectonic shift in the restaurant industry, not only shedding light on how women are treated but paving the way for cultural change within. We still have a long way to go, but awareness is the first step.”
– Anita Lo, chef and cookbook author

Lo is best known for her work at annisa, a Michelin-starred fine dining restaurant in New York she owned and operated for 17 years. She was the first female chef to collaborate for a state dinner at the White House under the Obama administration.

“It has been incredible to see the stance of zero tolerance that the restaurant industry has taken in regards to the #MeToo movement and finally holding people accountable. We can only go up from here, continuing to really listen to those that speak out and give a platform to those that don’t feel they are able to.”
– Traci des Jardins, chef/owner

Des Jardins has been a part of the San Francisco food scene for over 28 years, opening Jardinière in 1997 and Mijita Cocina Mexicana in 2004 as chef/owner (both closed in 2019). She is chef/partner of The Commissary, Arguello, Transit, Public House, and School Night. She is also the culinary advisor to Impossible Foods, which launched the Impossible Burger in 2016.

Diversity

“I am no longer alone. The only woman, the only woman of color, the only one who wanted to talk about the best lipsticks for working the floor as a sommelier. Early in my career, I was never able to find a woman mentor or role model to support me. Now there are many. Including me!”
– Belinda Chang, sommelier

A James Beard Award-winning sommelier, Chang ran the wine programs and often the whole front of house at Charlie Trotter’s, Fifth Floor, The Modern, and recently, Maple & Ash in Chicago.

“Diversity! While there is always room to keep opening the door to people of diverse backgrounds, it seems like the range of cultures represented in the overall restaurant landscape has grown. In the beverage world, there are more regions from more parts of the world represented in wine and spirits.”
– Morgan Calcote, general manager and wine director

Calcote started as a server at Charleston’s FIG and was promoted to GM in 2014. Four years later, under her management, FIG took home the James Beard Award for Outstanding Wine Program.

Variety

“An intentional move toward mission-driven restaurants and a rejection of the notion that creativity lives in fine dining.”
– Alex Raij, chef/owner

Raij is half of the husband-and-wife duo behind Txikito, El Quinto Pino, La Vara, and Saint Julivert, concepts that combine Basque traditions with the Jewish and Moorish influences in southern Spain. Read her take on being a mom in the industry in our interview.

“The variety of restaurants that have opened, and the new stories they bring to the table.”
– Kim Alter, chef/owner

Nightbird and Linden Room are Alter’s first solo projects in San Francisco’s Hayes Valley. (Here’s her story on opening the concepts.) She led the kitchens at Haven and Plum and Oakland also worked at Manresa, Ubuntu, and Acquerello.

“The acceptance of new (or previously hidden) varietals. Now you see single varietal bottles of Counoise, Mourvedre, Picpoul, and more! It’s so fun to have such a wide variety of wines, and often at great, affordable price points.”
– Jennifer Reichardt, owner/winemaker

Reichardt grew up in a family of duck farmers. She launched Raft Wines in 2016 using organic California grapes and now oversees all aspects of the business.

Wellness & Sustainability

“The amount of young people becoming a savvy, big consumer group. I’m constantly impressed by their awareness for the environment, knowledge of wines, knowing where their food comes from, and opting for healthier eating. It gives me hope that the planet will be in better hands with future generations.”
– Shelley Lindgren, owner and wine director

Lindgren opened A16 in San Francisco in 2004, showcasing Italian wine beyond Barolos and Brunellos. The restaurant received the 2015 James Beard Award for Outstanding Wine Program – learn how she did it in our interview.

“The leaning in on health and wellness, and how much this has been a driver for new restaurant ideas. The desire for work/life balance has created a shift in perspective, and I think has been felt the most in the kitchen.”
– Naomi Pomeroy, chef/owner

Pomeroy serves intimate tasting menus at her Portland, Oregon, restaurant Beast, which won her the James Beard Award for Best Chef: Northwest in 2014. She is also proprietor of the cocktail lounge Expatriate, and she and her husband own a floral design studio and plant shop.

“More people are recognizing and acknowledging the importance of sustainability.”
– Gabriela Cámara, chef/owner

Camara’s San Francisco restaurant Cala was Food & Wine’s Best New Restaurant in 2016, while Contramar continues to win accolades as one of the top restaurants in Mexico. Cámara is also a partner in Santa Monica’s Onda has been named among Fortune’s Most Innovative Women in Food & Drink.

Professionalism

“The overall push toward professionalism in the industry has been both big and exciting (and necessary, for this industry to continue). The job description of what it means to be a chef has really shifted. There’s been a move toward embracing the responsibility of leadership and mentorship in a way that didn’t exist before.”
– Ashley Christensen, chef/owner

Known for her Raleigh, NC restaurants Poole’s Diner, Beasley’s Chicken + Honey, Chuck’s, Fox Liquor Bar, Death & Taxes, Bridge Club, and Poole’side Pies, Christensen was named Best Chef: Southeast by the James Beard Foundation in 2014. She also been named Chef of the Year by Eater.com.

Stay up to date by following us at @OpenTableRestaurants.

How José Andrés’ nonprofit World Central Kitchen feeds the hungry, supports communities & changes the world

When disaster strikes, chefs are often on the frontlines of crisis, cooking and serving people in immediate need. Last year, World Central Kitchen, the disaster relief nonprofit founded by Chef José Andrés, activated in response to 13 disasters from the US-Mexico border to the beaches of Indonesia. The organization engages local chefs and producers to feed the hungry and provide ongoing support to help communities sustain themselves in the long term.

OpenTable is proud to have presented a “Feeding the World” dinner, hosted by Andrés and showcasing dishes from around the globe, at this month’s South Beach Wine and Food Festival. For every ticket purchased, we will make a $10 donation to World Central Kitchen.

Here, we invite you to get involved, too. Read our Q&A with the World Central Kitchen team to learn how they mobilize resources, nurture communities in need, and create connections and infrastructure for healthy food systems in the years to come. Learn about volunteer opportunities here.

First of all, tell us about the work you’re doing in Australia right now. What’s the most urgent need, and how is the team addressing it?

A WCK team has been on the ground in Australia since about January 4th, working with and within hard-hit communities to assess what people and local businesses really need. In many small communities in Victoria and New South Wales, the town’s economy of small cafes and restaurants, already really dependent on a very short, two-month tourist season, have collapsed. We’ve not only partnered with local restaurants to cook from their kitchens and deliver hot meals to firefighters and community members, but have also piloted a program called Feel Good Feeds that gives neighbors a punch card to use at their favorite local spots, for which World Central Kitchen foots the bill. Here are two stories about our ongoing work in Australia.
– Sam Bloch, Director of Field Operations

What responsibility or opportunity do chefs have to communities in need after a crisis? How would you encourage other chefs to help?

Chefs and the hospitality community usually see feeding and taking care of people as not just their work but as a huge part of their lives and personalities – if their community is in crisis, the first thing they think to do is to start cooking. When World Central Kitchen deploys to help a community in crisis, one of the very first things we do is connect with local chefs to assess need and available resources and make a plan to get people cooking and serving. Chefs have these answers and know their communities and how to marshal resources better than most anyone. World Central Kitchen has built a network of chefs around the world who stand ready to help their communities when needed. We’re also working on developing a curriculum in disaster-relief cooking that will hopefully be part of more and more chefs’ overall training, so every chef will have this very specific base of knowledge and readiness…just in case.
– Tim Kilcoyne, Director of Chef Operations

Food can be a source of both nourishment and comfort in a crisis, as you have said. What kinds of dishes do you try to serve to communities in need, and what are the logistics or challenges of getting fresh, locally sourced foods to those communities?

All the meals we serve will always be fresh and healthy, but we work closely with the local community to make sure we’re cooking food that people love, meals they may not be able to make or buy for themselves during the crisis. A good example of this recently was fire engine, a corned beef dish traditionally eaten on Sundays in The Bahamas. We mobilized our kitchens across all three islands to make it every Sunday! Logistically, we attack the problem of sourcing from the inside out and seek local vendors, grocers, and suppliers to augment and, if possible, take the place of large wholesale vendors so we can adhere to our mission of helping local economies always. If the disaster has done enough damage to close everything down, we will be sure to work with local providers to get them back online and purchase from them when they do.
– Josh Phelps, Relief Operations Manager [Read more…]