During these uncertain times, we’ve been busy tracking news that’s relevant to frozen yogurt and looking for resources to help our members and community. While many industries have been affected by the spread of the coronavirus, the restaurant industry has been particularly hard hit. Many frozen yogurt shops have chosen to or been forced to close for the foreseeable future, in the US and also in other countries. Most have had to cut back hours and have seen a significant drop in revenues. Delivery and takeout volumes typically have not been enough to justify staying open. To make matters worse, some frozen yogurt shops just reopened after an extended winter break.
Owners are worried about rent, loans, taxes, and other expenses, while many employees have been laid off. Selling the shop in such uncertain times is going to be very difficult. Will concerns about cleanliness lead to a shift back to counter serve frozen yogurt? How much will consumer behavior change as a result of this outbreak? The answers to those questions won’t be known for awhile but we will amend our National Frozen Yogurt Survey to learn more about how the coronavirus outbreak has affected frozen yogurt shops and frozen yogurt consumers.
Reading all the shop closure announcements from around the world reminded us of how widely loved frozen yogurt is and how many of us are facing the same challenges. We were also surprised to see that some shops were not making any announcements on social media. They missed the opportunity to provide customers with information and reassurance.
The National Restaurant Association is providing updated information and resources about coronavirus and it also sent a letter to the Administration and Congress asking for relief and help recovering for restaurants. They also launched a grassroots campaign to urge Congress to take action quickly. In addition, the National Restaurant Association provides tips for how restaurants can try to deal with the current crisis.
Clarion Events, which produces the New York Restaurant Show, Western Food Expo and Florida Restaurant Show, among others, is offering free webinars, updated news, and educational content to help those in the foodservice industry deal with the impact of the coronavirus.
QSR Magazine provided tips on how to access additional capital during the pandemic. FSR Magazine put together a list of relief fund options for restaurants and restaurant employees. Yelp is currently offering a $25 million in relief in the form of waived advertising fees and free advertising, products, and services. Third party delivery services like DoorDash, Ubereats, and Postmates are suspending commissions or eliminating fees, as well as offering contactless delivery.
Grubhub’s CEO, Matt Maloney, predicted that 30% of restaurants could close permanently because of the pandemic. Larger restaurant concepts and fast food stand to gain once the pandemic is over while small, independent restaurants will likely suffer the most.
Restaurants Canada sent a survey to food industry businesses recently and found that over 90% of respondents are very worried about the next three months and many are considering closing down permanently. This is troubling because the restrictions had just been in place for less than a week when the survey was taken. The restrictions could last for months.
We will continue to monitor the situation and provide updates.
