GRAND RAPIDS, Mich. — Michigan's restaurant industry was hit hard during the COVID-19 pandemic last year, and this fall and winter season is concerning industry experts.
Cold weather and the Delta variant may freeze any chance of a rebound.
All In Hospitality Group owns Royals and three other restaurants in the uptown neighborhood on Wealthy Street.
"Last year was difficult for the entire service industry and one thing that made it more difficult was everything was really 'fly by the seat of your pants,'" said Chris Funaro, Director of Operations for All In Hospitality.
Restaurants had to adjust to indoor dining restrictions so they found creative ways to keep customers warm. Royals set up outdoor igloos that will be returning this year.
"That'll add at least 65 seats at a majority of our restaurants," Funaro said.
Funaro said having time to plan for the cold weather months this year is a game changer.
"The opportunity to have a better plan in place will allow the execution of outdoor dining to be better," he said.
The Michigan Restaurant & Lodging Association released data from a nationwide survey earlier this month where 131 Michigan operators were questioned.
- 12% say their restaurant is more profitable now than it was three months ago.
- 87% say their restaurant currently does not have enough employees to support its existing customer demand.
- 58% say their restaurant experienced a decline in demand for indoor dining in recent weeks as a result of the Delta variant.
- 90% of operators say their total food costs are higher than they were prior to the COVID-19 outbreak.
- 17% of operators think it will be seven to 12 months before business conditions return to normal for their restaurant, while 55% think it will be more than a year.
Even with this concerning outlook, Funaro said he's more hopeful this year than last, especially with vaccinations.
"We know that there's no light at the end of the tunnel yet so again we're just trying to focus on what we can," Funaro said. "Trying to be positive and grateful for the staff we have and guests that choose to dine with us and make an impact any way we can."
Related video:
►Make it easy to keep up to date with more stories like this. Download the 13 ON YOUR SIDE app now.
Have a news tip? Email news@13onyourside.com, visit our Facebook page or Twitter. Subscribe to our YouTube channel.