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Would ‘Back to Normal’ Be Good Enough for Restaurants? Will the Coronavirus Make Restaurants Like Mine Extinct?
(about 4 hours later)
Last week, I laid off all 30 of my employees and closed the restaurant I’ve run for over a decade, Dirt Candy. I’ve worked shoulder to shoulder with many of these people every night for years.Last week, I laid off all 30 of my employees and closed the restaurant I’ve run for over a decade, Dirt Candy. I’ve worked shoulder to shoulder with many of these people every night for years.
I’ve lost a family. They’ve lost their jobs.I’ve lost a family. They’ve lost their jobs.
If I knew the coronavirus lockdown would last two or three weeks I would have kept them on the payroll, but we have no idea how long this will last. A month? Two? Six? After three weeks of issuing payroll checks while earning no income, I would have an empty bank account. And if that happens, I’ll never reopen.If I knew the coronavirus lockdown would last two or three weeks I would have kept them on the payroll, but we have no idea how long this will last. A month? Two? Six? After three weeks of issuing payroll checks while earning no income, I would have an empty bank account. And if that happens, I’ll never reopen.
During the shutdown, I’m still expected to pay my rent, my insurance and my utility bills. Even if some of those bills can be deferred, that just means when I reopen I’d be carrying a load of debt I wouldn’t be able to pay down.During the shutdown, I’m still expected to pay my rent, my insurance and my utility bills. Even if some of those bills can be deferred, that just means when I reopen I’d be carrying a load of debt I wouldn’t be able to pay down.
Some restaurants are offering deliveries, but the money that business would bring in wouldn’t equal what my staff could receive in unemployment benefits, which, because Dirt Candy had a no-tipping policy and paid a higher hourly wage instead, will be near the top of the scale.Some restaurants are offering deliveries, but the money that business would bring in wouldn’t equal what my staff could receive in unemployment benefits, which, because Dirt Candy had a no-tipping policy and paid a higher hourly wage instead, will be near the top of the scale.
Now we’re in limbo. I can be prepared to reopen, but when? How much debt will I be carrying? Will there be a relief fund for restaurants? Debt forgiveness? Bailout money? And who decides how it gets apportioned? Nothing is certain.Now we’re in limbo. I can be prepared to reopen, but when? How much debt will I be carrying? Will there be a relief fund for restaurants? Debt forgiveness? Bailout money? And who decides how it gets apportioned? Nothing is certain.
The national chains have lobbying power, and the restaurant groups have big voices, but what happens to owner-operated restaurants? Who’s going to make sure we don’t disappear?The national chains have lobbying power, and the restaurant groups have big voices, but what happens to owner-operated restaurants? Who’s going to make sure we don’t disappear?
There are thousands of owner-operated restaurants in New York City, like mine, and they help give this city its character. They’re that place on the corner where they know your favorite drink, that place you went to on your anniversary because you were exhausted from staying up all night with the baby, and they served you pasta that brought you back to life. They’re the places that employ 10, 20, 30 people, not 200. And they — we — are facing extinction.There are thousands of owner-operated restaurants in New York City, like mine, and they help give this city its character. They’re that place on the corner where they know your favorite drink, that place you went to on your anniversary because you were exhausted from staying up all night with the baby, and they served you pasta that brought you back to life. They’re the places that employ 10, 20, 30 people, not 200. And they — we — are facing extinction.
But then again, fine dining and owner-operated restaurants were already struggling in New York City. Our business model was looking less and less viable. Chefs I’ve spoken to say profit margins have shrunk to about 2 percent from around 8 percent over the past decade.But then again, fine dining and owner-operated restaurants were already struggling in New York City. Our business model was looking less and less viable. Chefs I’ve spoken to say profit margins have shrunk to about 2 percent from around 8 percent over the past decade.
Customers are willing to pay only so much for food, yet rent, utilities, insurances, taxes and food costs keep going up. We’ve survived by cutting our labor costs to the bone, but that has left us in the industry still on the edge, while cooks, porters, servers, dishwashers,and bartenders have no significant savings, health care or a safety net. Lots of restaurants have started relief funds for their staffs and that’s great, but if our workers need charity so badly now, maybe owners weren’t doing this right in the first place?Customers are willing to pay only so much for food, yet rent, utilities, insurances, taxes and food costs keep going up. We’ve survived by cutting our labor costs to the bone, but that has left us in the industry still on the edge, while cooks, porters, servers, dishwashers,and bartenders have no significant savings, health care or a safety net. Lots of restaurants have started relief funds for their staffs and that’s great, but if our workers need charity so badly now, maybe owners weren’t doing this right in the first place?
After this shutdown, we’ll have to rebuild the city’s restaurant business from scratch. A few restaurants with deep pockets can probably return to business as usual, but the bulk of places in this city would reopen with enormous debt. We’ll be welcoming back workers whose bank accounts have been drained, who will bear significant health care costs, who will more clearly feel the need for child care and sick days.After this shutdown, we’ll have to rebuild the city’s restaurant business from scratch. A few restaurants with deep pockets can probably return to business as usual, but the bulk of places in this city would reopen with enormous debt. We’ll be welcoming back workers whose bank accounts have been drained, who will bear significant health care costs, who will more clearly feel the need for child care and sick days.
This shutdown has shown us that the only moral choice is for the industry to provide a better safety net for our workers. But right now I can’t see that happening because I don’t think customers, many of them also feeling more financially precarious, would be willing to pay the cost. They’ll buy gift cards and give to charity, for which I am grateful, but will they pay more for their mussels, night after night?This shutdown has shown us that the only moral choice is for the industry to provide a better safety net for our workers. But right now I can’t see that happening because I don’t think customers, many of them also feeling more financially precarious, would be willing to pay the cost. They’ll buy gift cards and give to charity, for which I am grateful, but will they pay more for their mussels, night after night?
Restaurants are our meeting places, they’re where we mark our birthdays and anniversaries, and for years we’ve shown that we’re comfortable celebrating our plenty while those who wait on us go without.Restaurants are our meeting places, they’re where we mark our birthdays and anniversaries, and for years we’ve shown that we’re comfortable celebrating our plenty while those who wait on us go without.
New Yorkers need to ask themselves if they would they be willing to pay $8 for a latte instead of $5 if it means their barista has health care. Will they pay $100 instead of $75 for a couple of burgers and a few beers if it means the person serving them doesn’t have to rattle the cup the next time there’s a disaster?New Yorkers need to ask themselves if they would they be willing to pay $8 for a latte instead of $5 if it means their barista has health care. Will they pay $100 instead of $75 for a couple of burgers and a few beers if it means the person serving them doesn’t have to rattle the cup the next time there’s a disaster?
New York has about 26,000 restaurants. What does the city look like with 20,000? With 15,000? Will we be a happier city with fewer restaurants that charge more but pay better wages and provide health care? Will we be the same city?New York has about 26,000 restaurants. What does the city look like with 20,000? With 15,000? Will we be a happier city with fewer restaurants that charge more but pay better wages and provide health care? Will we be the same city?
When this pandemic ends, will customers really crowd back into restaurants? Or will they be more cautious with their social distancing and their money? Will we be ready to make sacrifices to build a better future for the people who pour our coffees and mix our drinks? Or will we turtle up with a vengeance and focus on our own comfort until the next disaster?When this pandemic ends, will customers really crowd back into restaurants? Or will they be more cautious with their social distancing and their money? Will we be ready to make sacrifices to build a better future for the people who pour our coffees and mix our drinks? Or will we turtle up with a vengeance and focus on our own comfort until the next disaster?
All I know for sure is that right now, the people who made up my work family are scattered to the winds. I don’t know when I’ll see them again, and I don’t know how to get them back. I took care of them as best as I could but I worked in a system that meant my best wasn’t good enough.All I know for sure is that right now, the people who made up my work family are scattered to the winds. I don’t know when I’ll see them again, and I don’t know how to get them back. I took care of them as best as I could but I worked in a system that meant my best wasn’t good enough.
When the seas were smooth, we could all scrape by. But now we know what a storm looks like. And we have to decide if scraping by is good enough.When the seas were smooth, we could all scrape by. But now we know what a storm looks like. And we have to decide if scraping by is good enough.
Amanda Cohen is the chef and owner of Dirt Candy.Amanda Cohen is the chef and owner of Dirt Candy.
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