The National Restaurant Association projected revenues of $899 billion by 2020. This before many restaurants were ordered to close through civil and government officials. The U.S. Bureau of Labor Statistics He said 701,000 jobs were lost in March and more than a portion of the lost tasks occurred in the recreational and hotel sector, of which restaurants are a part.
“This is a monetary tsunami in my catering business,” John Harkey Jr., CEO of Consolidated Restaurant Operations, Inc. (CRO), told Fox News. “As a company, we’ve fired another 4,000 people. It’s devastating. Everyone’s affected. Probably 500 of those other people have worked for me for over 20 years. Our other people need to work.”
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CRO can retain approximately 25 company workers and 75 restaurant workers. Senior team members agreed on pay cuts of up to 80%, and the CEO said he would not get any wages.
Several cro restaurant workers did not respond to requests for comment.
Harkey’s corporate is in Dallas, Texas, and operates and franchises 70 restaurants in 12 states, as well as in the UAE. CRO restaurant brands include Cantina Laredo, III Forks Steakhouse, Cool River Cafe, Silver Fox Steakhouse, El Chico, Good Eats and Lucky’s Café. They serve more than 6 million foods a year.
“We have seated restaurants serving visitors with a [full] wait. We are in the area of gourmet social gathering restaurants, which, by definition, are meant to bring families together to hold events, anniversaries and business meetings,” Harkey said.
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More than 40 U.S. states have civil or government ordinances that prohibit access to restaurants in restaurants, designed to prevent the spread of coronavirus. Most states allow restaurants to offer consumers a delivery or delivery service, but Harkey says this option is not feasible.
“We’re very different from fast food, classic takeaway restaurants or delicatessens,” Harkey said. “I get questions:” And what about takeaways? It doesn’t work? “To put things in perspective, we’re in some of the most productive malls in the United States. We’re at the Mall of America in Minneapolis. The mall is closed and take away takeaways.”
Harkey has kept 15 CRO establishments open to go, but remains skeptical about how it works.
“This allows us to employ some other people in the kitchen and keep them at work. It covers the food charge, the workers’ office and some utilities, but it will never be enough to earn a month’s rent.”
He’s given him combined reactions.
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“Some are very empathetic and have come to tell us, “We will paint with you. It takes 3 months and we will put it at the end of the lease. We sense it can’t work,” he said.
“And then they’re owners who say, “We need to be paid.” Well, in this case, [there will be] a serious legal debate about whether you have been constructively evicted from your site because you can’t make it work. It is difficult to see a landlord raise the rent when the tenant can’t, by civil order … run this business.”
Harkey said he had a wonderful empathy he had to say goodbye to.
“There is no position to pass if it is not unemployment. It is very difficult for other people and families. I have to retire to revive my business and make paintings to provide an opportunity for those families.”
Many industry players are involved in the $2 trillion coronavirus stimulus program doing little to restaurants that have been mandated by the government to close their canteens.
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“You have to have faith that there is going to be a pathway at the end of this, because our government leaders are going to figure it out and we’re going to work through it.
“But if stocks depend on certain industries, only time will tell.”