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In it Together: OpenTable’s weekly webinar series to create community and share advice with restaurateurs

In the face of enormous challenges, a sense of community brings the restaurant industry together. There’s never been a better time for hospitality leaders to come together and share their advice far and wide with other restaurateurs. That’s the goal of OpenTable’s new weekly webinar series, In it Together, hosted by our very own COO Andrea Johnston.

The In it Together series is a platform to lift the voices of Will Guidara, Anthony Rudolf, Renee Erickson, Bill Chait, and many more industry vets we’re honored to host. Anyone interested can register for free for the webinars on Wednesdays at 11 a.m. PDT. The recordings will be accessible after the webinars here. Our first live webinar on April 15, “Hospitality First,” covered a range of COVID-19 advice from Guidara and Rudolf. Read on for a few of the best takeaways, and see the schedule for upcoming webinars below:

Wednesday, April 22: The COVID Pivot with Bill Chait & Renee Erickson
Wednesday, April 29: Redefining Your P&L with Dan Simons & Brad Mendelson
Wednesday, May 6: Taking Care of the Industry with Edward Lee & Jessica Koslow
Wednesday, May 13: Industry Advocacy with Clare Reichenbach & Chef Kwame Onwuachi

Use this time to reflect and strategize as much as you can

Restaurant life is fast-paced to say the least. Guidara recommended planning during this unusual time with more stillness. He said, “So much of what we do is reactive, and those one or two strategic planning days of the year are the brief moments when we can pause to think, dream, and plan. Now, in this terrible time in what will hopefully be a once-in-a-lifetime thing, we actually have an opportunity to spend however long actually thinking about what we want to be, not just trying to keep up with who we already are. Let’s give ourselves the grace to plan, dream, and strategize. If this is the only opportunity that we’ll ever have to do that in such a deep way, what a terrible thing it would be to waste.”

Rudolf added, “Even if it’s 20 minutes a day, write down all the things you didn’t like about the last day or week of your service. When you reopen, don’t do those; you don’t have to. Challenge all of those things. The location of a table. The things that just felt way too much to deal with—deal with them all. So that when you reopen you are fully in love with the job and the business. The world’s going to need us to be in love with what we’re doing.”

Take care of yourself

While this is easier said than done in the face of financial, mental, and physical hardship, both Guidara and Rudolf emphasized the importance of taking care of yourself. Rudolf advised, “The health of your business when you reopen is going to be based on the health of yourself. I’ve never had therapy before [this], but my big takeaway is I’m a big control freak and I need to let it go. Whatever you’re holding on to so tightly right now, let it go. The world is going to need us healthier than they are going to need us stressed and worried.”

Trust your gut in the absence of a playbook

Turn your entrepreneurial instincts into overdrive, and don’t worry about finding the “perfect” answer for everything. Guidara said, “Operating in the absence of a playbook is a struggle. We’re used to rules that help guide decisions and now we’re all out in the woods. My dad has said, ‘Whatever the case is, just ask yourself what right looks like and do that.’ There’s a need for people to trust their guts right now more than ever before because there’s not one right answer to any of the questions that are being posed.”

Register for future In it Together webinars, and visit our preparedness resource center for additional COVID-19 information.

Practical financial tips from restaurateurs during the COVID-19 crisis

Our best wishes go out to all who are dealing with this challenging situation. As COVID-19 continues to upend the hospitality industry, our community matters more than ever. In the coming weeks, we’ll highlight restaurants that are continuing to feed their communities, how diners are supporting their local restaurants, and what we’re doing to support the industry. Head here for OpenTable’s preparedness resource center.

Many restaurateurs are thinking about how to deal with the current financial hit, as well as how to cut costs now and in the future. These financial considerations are separate from the fundraisers many restaurants are running to support their staff and operations, and many of them require negotiating.

There’s a lot to sort through when margins are thinner than ever, so we tapped restaurateurs in our network as well as OpenTable employees with restaurant experience. Read on for their practical financial advice, and see which tips could be applicable for you.

Reevaluate your P&L

Take a comprehensive look at your cash reserve and your forecasted expenses, and create a new P&L if necessary.

“Create a miniature P&L around takeout and a declining checkbook (utilities, salaries, insurance, supplies etc.). What does it cost to operate and what are we taking in? Does it make sense?”
— Ted Swigert, owner of Drake and Washington Dining & Cocktails in Bend, OR

“Create a comprehensive plan of your essential expenses, and your restaurant’s cash, savings, emergency funds, et cetera. From here, you can forecast what you’ll need to keep the lights on.”
— Sarah Chen, OpenTable marketing coordinator with a family of restaurateurs

Prioritize insurance bills

Insurance policies can be tricky, and you don’t want to run into added stress because of fine print you were unaware of.

“You can negotiate with your landlord on rent and your purveyors on terms, etc., but the first bill you pay should be anything related to insurance. Many policies have clauses that can cancel or reduce coverage around lack of payment, and now is not the time to let protection lapse and then have something happen, making an already bad situation worse because you aren’t properly covered.”
— Kelly Carroll Harbison, OpenTable Restaurant Services Manager, NY

Audit your automatic payments

Take a moment to gather all of your automatic payments and subscriptions, and decide which ones are nonessential.

“Scrub past credit card bills for any recurring charges so you can pause or cancel subscriptions you don’t need. It’d be extra frustrating right now to get hit on your credit card bill for some quarterly recurring charge.”
— Dan Simons, co-owner of Farmers Restaurant Group, home to upscale American cuisine in DC

“If you’re not staying open for delivery, turn off all delivery platforms.”
— Kevin Boehm, co-owner of Boka Restaurant Group, a chef-driven restaurant group in Chicago

Negotiate rent

You can talk to your landlord about the possibility of restructuring your monthly rent payments or working out a rent payment plan that makes sense for both of you.

“With your landlord, use the phone, not email. If the landlord is a big company, human-to-human is the way to establish a framework for the kind of relief and support that you need. For the moment, you don’t have to push for a comprehensive solution or long-term answer. Just get an agreement that rent is not due for the next 60 days, and that the landlord will not take any punitive steps, and agree to discuss the whole topic again in 45 days.”
— Dan Simons

Communicate with vendors

Similarly, you may want to reevaluate any relationships with vendors that are currently unnecessary, or negotiate new options. Keep in mind that purveyors are also facing challenges and need support, so be open and honest in your communication. For example, Ted Swigert contacted all of his purveyors to work out payment plans.

“Pause all nonessential spends and communicate with vendors the reasoning and timeline for when you’ll be able to start these back up. If you have unpaid balances, consider speaking with them about a payment plan or deferring payment.”
— Sarah Chen

“Cash is king. Only pay for product you need to buy that you can actively sell. Every other Accounts Payable line should be frozen and evaluated case by case. But, along the way, be an excellent communicator with every person and company on that AP list. We have to remember that lots of our vendors and suppliers are just as hurt as we are. While we don’t always have money, we always have character and communication, so lead with that.”
— Dan Simons

“For wholesale vendors including food, wine, and liquor, negotiate payment terms.”
— Irene Wu, OpenTable Restaurant Services Manager, NY and CT

Keep your employees in the loop

“Speak to staff in a formal email outlining what you are hoping to do regarding pay, and over-communicate your intention—do the right thing. Keep your staff paid wherever you can.”
— Lucy Taylor, OpenTable Sales Director

“Continually communicate your plans with your staff so they are informed— you don’t want to leave them in the dark! Determine the number of positions essential to running takeout/delivery, and schedule on a rotation basis for those roles so you can run operations and provide hours for each of your staff.”
— Sarah Chen

Trust your entrepreneurial instincts

If any inspiration strikes, now’s the time to get creative with business models.

“Remember that entrepreneurship and fire in your mind that inspired you to get into this crazy business in the first place? Tap back into that. Put on your futurist goggles, find a need, and fill it. People need your hospitality, your heart, your commitment to community, your ability to fill their bellies with food and drink—repackage all those passions, skills, and abilities. There is no industry with grittier people than our industry. The banks and landlords will give us a runway—we need to build new models and figure out how to use that runway to launch.”
— Dan Simons

For additional COVID-19 information, visit our preparedness resource center and learn more about the CARES Act.

How restaurants can support themselves and their staff with fundraising

Restaurants across the U.S. are using sites including Facebook, Fundly, and GoFundMe to keep the lights on and support their staff. While new financial aid resources and relief, including the CARES Act, continue to be introduced for the industry at large, it’s helpful to have a dedicated place to collect money for your restaurant and employees.

If you’re already incorporating revenue strategies such as selling takeout, gift cards, groceries, or even your priciest bottles of wine, but you would like to learn more about other fundraising options, read on for inspiration and best practices from restaurants turning to the fundraising model.

Set up a public fundraising page online

Countless restaurants have set up online fundraisers leveraging a variety of platforms. The key here is to add a description of your fundraiser and who will benefit from the funds. Many are using GoFundMe, including Boka Restaurant Group, State Bird Provisions, and Foreign Cinema. Other funding platforms restaurants are using include Spotfund, where New York’s Seamore’s has an ongoing support fund; Fundly, where Off the Grid is providing meals for grocery workers; and GiveSmart, where Make It Nice restaurant group is allowing donations as well as bids on a variety of items and classes for diners to enjoy. Note that platforms’ fees may vary.

Get creative with types of fundraisers

It’s helpful for contributors to know exactly where their funds are going. Tartine is taking a different approach by collecting money for CSA (Community Supported Agriculture) produce boxes. The goal is to provide weekly boxes to employees, whether laid off or currently working, while simultaneously helping local farmers and growers stay in business. Tartine’s current fundraising goal is $125,000.

Chicago Tex-Mex restaurant D.S. Tequila has set up a “virtual tip jar” through Venmo. All contributions will be split among staff, and the restaurant plans to reopen with a benefit party—donors will get VIP entry. Similarly, Tipsy ATL is a site for people to give tips to restaurant and bar staff all over Atlanta. If you’ve been let go, you can submit your information to be added to the directory.

San Francisco Michelin-starred restaurant Mister Jiu’s is raising money specifically for furloughed employees’ health insurance, and funds raised after that initial $20,000 go toward operating capital to have once the restaurant opens back up.

Give back to healthcare workers

Feed the Line started in the Bay Area to “feed a hospital worker, save a restaurant.” It allows donors to contribute any amount of money to the restaurant of their choice, which then delivers meals to healthcare workers on the front lines. Active restaurants include Causwells, Dumpling Kitchen, and Nopalito.

Help Feed the Frontline LA is a similar community effort in Los Angeles in partnership with local restaurants and chef José Andrés’s nonprofit organization World Central Kitchen. It’s worth researching any organizations in your area that provide win-win opportunities for both restaurants and healthcare professionals.

Get the word out about your fundraising efforts

Once you’ve set up a fundraiser, the next best step is to share it far and wide. Many restaurants are adding the link to their Instagram bios and sharing frequently across their social channels and email marketing. Reach out to your regulars if you can; many of them might be eager to show support. NYC pasta restaurant Porsena raised over $15,000 from people on its mailing list alone.

Additionally, restaurants on the OpenTable network can add their fundraising link to their OpenTable profile at no cost. Restaurants can drive awareness of their fundraising efforts by adding a fundraising page link to their restaurant profile, and OpenTable will promote those fundraisers across its app, marketing, and social media beginning Monday, April 6. We hope our extensive diner network will help contribute to the financial health of as many restaurants as possible.

How restaurants are getting creative with grocery offerings

Many restaurants are getting creative while handling coronavirus-related curveballs, and adapting by selling groceries, ready meals, and pantry kits. As diners look for ways to support their favorite local establishments and restaurateurs do everything they can to stay afloat, the restaurant-turned-market model is shaping up to be a potential solution.

Here are a few tips and best practices from restaurants that have implemented a market model:

Sell grocery bundles and staples

Berkeley’s Donato & Co. has set up a grocery-specific menu outlining all of its offerings, from housemade tagliatelle to potato chips, preserved tuna, arborio rice, and half-off wine. The restaurant is also bundling its pastas, sauces, and cheese into meal kits for guests to cook at home. San Francisco Italian restaurant Prairie is operating as a full-blown general store stocked with pantry essentials, toilet paper, and fresh meat.

“I sort of just ran with it, wanting to keep the lights on and keep some people working,” Prairie chef/owner Anthony Strong told SFGate. “I didn’t put together a P&L for it. I didn’t do a sales projection for it. I’m just starting to wrap my head around it. I figure if we can ride this thing out rather than completely boarding up, it will allow us to already be open when it’s time to drop it back into restaurant mode,” he said.

Offer take-and-bake items

Tartine Manufactory is offering some ready-to-cook items in addition to takeout and delivery menus. “We’re doing frozen cookie dough, scones that people can bake at home, and seasoned, uncooked short ribs, among other things,” said Suzanne Roberts, general manager of Tartine Manufactory. “We were toying with the idea of doing paper towels and toilet paper, but we’re sticking to food and beverage. Coffee beans are something we always sell, and we have bone broth, soups, juices, and cooked beans by the quart.”

Establish a plan for social distancing

As restaurants and grocery stores limit the number of people inside at a given time and encourage six feet between people in line, they’re finding new ways to implement these guidelines. While there are over 65,000 grocery stores in the U.S. and the top 25 of U.S. grocery chains generate 80% of sales, according to market research firm Chain Store Guide, people are increasingly turning to small groceries and restaurants with pantry items during these times.

To help shoppers save a spot and stop the spread, restaurants and grocery stores are offering to reserve a shopping time to pick up groceries or join a real-time waitlist on OpenTable. Restaurants can also choose to set reserved hours for seniors, medical staff, or other groups. Businesses on the platform can customize their profile by letting shoppers know what steps they’re taking to foster a safe shopping environment and adding up-to-date inventory information.

Support local vendors and farmers

In Austin, Emmer & Rye is selling groceries such as dried pastas, fresh-baked breads, preserved local citrus, housemade butter, and items from its larder with online ordering and curbside pickup available. San Francisco’s Nopa is offering $32 grocery bundles with fresh produce, dried housemade pasta, half a dozen farm eggs, Rancho Gordo dried beans, fresh mozzarella, and half a pound of smoked bacon. LA’s Republique is continuing to support local farmers while offering $40 produce boxes full of kale, celery, fennel, herbs, and more, available for pickup. The list goes on.

Stay organized and over-communicate with customers

While takeout, delivery, and grocery operations present their own set of challenges to many restaurants navigating uncharted territory, staying as organized as possible helps. Tartine’s Roberts advises, “We put together a standard operating procedure: There’s signage up for where the delivery drivers can come in. We separated that from the normal guest entrance, and as a smaller space, we’re only allowing five guests in at one time.” The Bay Area has officially implemented such rules for grocery stores and restaurants, and other locations will likely follow suit.

To learn more about how to set up reserved shopping times with OpenTable, visit this page. For additional COVID-19 information, visit our preparedness resource center.

6 essential ingredients for crowdfunding a restaurant

Restaurants are some of the most capital-intensive businesses to start. Build-out and equipment costs, starting inventory, licenses, fees and working capital can easily add up to hundreds of thousands of dollars. To make matters worse, banks won’t lend to new businesses and not everyone has a rich uncle. So where do up-and-coming entrepreneurs turn for much-needed capital to fuel their dreams? Crowdfunding!

Crowdfunding is a financing mechanism popularized by Kickstarter and Indiegogo, where an entrepreneur pitches their ideas online and receives pledges from backers in exchange for rewards and gifts.

Crowdfunding is not easy money. We learned the hard way by doing it ourselves. The love comes from the labor you put into to it. Here are six essential ingredients to crowdfunding a restaurant project based on our extensive experience in the field.

[Read more…]