Market Watch, December 2020

DECEMBER 2020 MARKETWATCHMAG COM MARKET WATCH 79BAR TALKTrying To Beat The ChillVenues relying on outdoor seating to survive Covid 19 get creative in winter weatherFrom mandated shutdowns to indoor occupancy limits and social distancing restrictions restaurants and bars have had to rethink every facet of their operations during Covid 19 The expansion of outdoor dining during the summer and fall months helped many companies claw back precious revenue and keep staff employed but as winter settles in across much of the country those opportunities are dwindling Were fortunate that we have spacious outdoor sidewalk cafés at each of our restaurants says Doug Dunlay a co owner of Chicago based 4 Star Restaurant Group which operates seven concepts in the Windy City The outdoor dining option is the only thing thats kept us in business and allowed us to keep most of our staff employed When the weather puts a stop to our outdoor set up we anticipate a revenue drop of 60 70 Dunlay adds that even as Chicago reopened indoor dining in limited capacity many restaurant and bar patrons in the city said they felt more comfortable outside which is concerning for the winter months His 4 Star Restaurant Group has already spent money on tents greenhouse like domes and outdoor heating units to extend patio dining as much as possible but he admits this is a temporary solution and wont be viable throughout all of the winter months In addition city regulations on heaters and tents are limiting the companys options Keeping tents open on the sides renders them useless when the temperature drops below 60 degrees Dunlay says And just about every heater currently available is fueled by propane Were trying to extend our outdoor dining as much as possible but all of these efforts come with an additional cost thats difficult to justify Boston also has long cold winters and outdoor dining will be difficult to maintain there too Ran Duan founder and owner of Blossom Bar and Baldwin Bar applied for winter occupancy extensions for his patio spaces in an effort to keep outdoor business going as long as possible Duan received a patio heater permit and purchased 20 heaters for his venues though he notes that the warming units were more expensive than expected because of a supply shortage Despite our efforts to provide eat in and takeout options through the winter we anticipate having the slowest winter in our history Duan says Well lose 50 occupancy if we have to close the patio which will translate to an equivalent loss of business Were planning to increase marketing and adapt more takeout kits and to go cocktails to make up for low revenue I worry most about my staff and providing jobs If the numbers dont work out our last resort will be to hibernate for winter until patio season starts again To help guests stay warm Duan is also looking at warm cocktails to set the mood outside One of his more popular options is the Hot Buttered Banana Rum 14 made with Santa Teresa 1796 Solera and Plan tation OFTD rums Lustau Solera Reserva brandy house made brown butter banana paste and hot water topped with passion fruit foam Warm drinks are also at the forefront for New York Citys Kimoto Rooftop in Brooklyn The venue added several new offerings this winter including a St Germain and Jameson Irish whiskey based Hot Toddy 14 a Noilly Prat based Mulled Vermouth 14 and the Spiced Apple Tea 14 which blends Bombay Sapphire gin Martini Bianco lemon juice and Eager Cloudy Pressed apple juice thats been simmered with orange blossom honey green apple slices cinnamon clove cardamom and black tea Since were a rooftop lounge outdoor dining has always been one of the key factors that attract guests to our space says Kimoto founder and owner Andy Lee When New York City started to allow outdoor dining during Covid 19 we took the opportunity to reformat our seating to provide guests with a more private and intimate atmosphere by installing partitions Our roof is covered so weve been open year round prior to Covid 19 but recent restrictions create additional complexities Lee says his bar has used outdoor heating lamps in years past and plans to do so again though he worries about how all the uncertainties will play out as winter takes hold The ever changing landscape makes operating during the winter more difficult Lee adds We anticipate business will be slower as its historically been for most lounges and restau rants in this city but we strive to provide our guests with the same elevated experience year round mwLaura PelnerIn Chicago 4 Star Restaurant group is using tents Perch restaurant pictured and outdoor heaters to keep its outdoor dining season going as colder weather sets in