Businessweek Extra - Tom Colicchio

but really the future of food. Right and Jason, he completely closed his restaurants in New York and l a shut them down, laid off his workers temporarily. He's been in the business what forty years. He said it was the hardest decision he has faced during those forty years, just really gut wrenching. So we talked with him about the shutdown and then what life is like after the virus. Yeah,

this has been devastating, um, and not only for me. Um. I co founded the Independent Restaurant Coalition and so I am in constant contact with UH many hundreds of restaurants, turns and chefs, across the country pretty much a daily basis, and you know, we're we're struggling out there, and you know, p P KE we thought was really going to help,

and it doesn't UM because we're not open. I think PPP and structure for for businesses and maybe are somewhat depressed and they can hire their staff back, but there's still a revenue moving through their system. Right now. Restaurants are closed. UM. Some are starting to open up in some states, but they're they're opening up into a really really depressed market and so p P P UM it doesn't really help us. And so we are asking for a restaurant stabilization package. UM. We're uh. We we sent

our our letter to Congress yesterday. We're asking for a hundred and twenty billion dollars to stabilize our industry. So the eleven million employees that in a restaurant UM employee UM have a job to come back to, and not only a job to come back to when we can finally get open, but we're going to be depressed for

until we find the vaccine. So we're talking about another year almost And what we don't want to do is have a situation where people start coming back to work and then we're closing right, you know, two months down the road and everybody's back on unemployment to get or out of the job. And so Tom, I want to talk about what it looks like on the other side

of all this. But help us understand in in the short term, what are you hearing as you I know you just sent the letter yesterday, but and you're talking to people all the time in the government and other advocates. What's the response been, What's what feedback are you getting in terms of what's feasible in order to help the industry.

You know, I think they're hearing us. I mean, I've spoken to many members of Congress over the last you know, three or four weeks, and so has There's so many members of our coalition, and um, they hear us, um, and they're they're trying to help us to try to figure out and and you know, obviously um uh they're hearing from a lot of different sectors and are looking

for for uh uh for for help. Um. We just feel that we're uniquely positioned because so many people are employed by independent restaurants, and then if you factor in all the farmers and fishermen and winemakers and cheesemakers and other various services that we are purchasing. Keep in minds and every dollar that we take into a restaurant goes

out the door. And so not only are you helping our business stay afloat and and providing those jobs and media jobs and workers, but also all the other people that were indirectly employ and these are these are small farmers. We're not talking about big, mega farms. We're talking about small farmers. Uh. Fishermen who are you know fishing, you know, dabot fishermen, small teethemakers and so um. You know, there's

there's a desperation here. And again it's it's not just the restaurants that we're concerned that you know, uh Dijs Beer Foundations did uh um. You know, I have has data right now that maybe twenty percent of the restaurants won't open up. I'm hearing it's gonna be bigger than that, you know, We're we're hearing from from from the industry that maybe the restaurants might open up. If that happens, think about the supply chain that is going to actually

end as well. So it's not just the eleven million jobs. It's it's probably jobs and a lot of people loblihoods. Well, And I was gonna say, Jason, we've talked you know, and Tom. We've talked to UM wineries out in the West Coast. We've talked to UM some suppliers that UM you know, you know, supply food and other items to the industry. And you're right, the supply chain is vast. So it's not just you know, the front and center workers you see at restaurants. It's it's much wider than that.

I am curious. You do, say, Washington's listening, so what's the likelihood that they do something in terms of a stimulus. And you're right, it's not just now, but it's what happens on the other side of this, because this is not a quick bounce back in our economic recovery. No, I mean something. I think we'll bounce that quicker than others. I think the restaurant industry when we open up and we're hearing you know that we have to cut half our tables out, and then the question really isn't when

we're going to open up. I mean, there's this idea that George is gonna open up and texts are gonna open up and people are gonna go. No, it's it's not when we open up, it's when do people feel comfortable conjure getting a place that is busy. When you walk into your restaurant, the bartenders wearing a face mask and a waiter comes up to you and greet you with a face mask, you are not going to be

comfortable eating in that restaurant. Dodger, did someone coughs when they're you know, even even with social distancing, I just don't see how that works out. So we're we're we're in there for the long haul. Um. And when I think Congress they're listening, Uh, they're they're listening. I don't I don't know if there's going to be action, and

that's what we're hoping for. Yeah, they're hearing us. Um, we have you know, representatives, you know who are making sure that that our our needs are are are being heard. The question is whether or not Congress will act on this. And so Tom, what has this laid there or how much has this laid there about the state of the industry going into this In a place like New York, it's a place that Carol and I all home, You know, we work in Manhattan. We have been each patrons at

many of your restaurants over the years. You know this business so well, you know the industry. What does it tell us about the fragility of it? And obviously none of this was foreseen, but what is it laid bare in your estimation? No, I think that you know, restaurants, uh, for the last you know, you know, ten years or so, there's been a definitely a uh, it's been a a little more difficult, especially in New York City with rerents as high as they are. Labor markets are tight, and

you know, we're fine paying people more money. Um, but it's definitely eaten into our bottom line and so we're nowhere nearest resilience as as we were. UM. We we we certainly are a viable business. Our margins are just definitely uh smaller than they used to be. But you hit on something, UM, that's you know, really I think it's it's really important here. UM. Thank you for for

page rising. Uh. The restaurants and my restaurants, and we want to be there for you when this is over, because you know, we can look at the economics of it, and I can make an economic argument for why restaurants needs need help, and I think I've relaid that out. But also when we're through this, the cultural institution, that's what restaurants have become. They need to be there because

people are gonna want to get back to normal. And what is not normal if it's not for walking into your favorite bar or restaurant and seeing that bartrander that you know it's going to take care of you, seeing that your favorite waiter, knowing you're gonna get the dish that you are craving. I mean a lot of people are cooking at home now, and I think that's great, but sooner or later, you're gonna get tired of your

own food. I know I'm tired of my food. But you know you're gonna want to go to that restaurant. And you're gonna want to go if the song says you want to go where people know your name and and and these are the places where you celebrate anniversaries and birthdays and all those milestones. And I'm not only talking about my restaurants White Table, Cloughts Restaurant. I'm talking

about the mom and problem. You know, a recent immigrant who who pulled a you know, pulled all of their money and came to this country, opened up their you know, their American dream, and they were making it up until two months ago. And that's what we need to get over. We need to say that we need to save Main Street right now. We need to make sure that those restaurants are there, because without restaurants and without these small businesses, what are we going to have? Where are we going

to go? Where are we going to go to full normal again? Where we going to go to wrapper arms around each other and say we're safe, We're okay, we made it. So we need restaurants to be there for the long haul. I gotta say, Tom, We've had a couple of left overnights and I'm like, all right, really, can we just move on already? Um? The one thing I do want to ask you and Jason and I have been having this conversation. We've talked with UM Daniel Blue.

We've talked to a couple of different folks about the industry. I mean, individuals like yourself. We're what we consider the people who have done really, really well, and yet it's tough for you, As you said, of every dollar goes out the door at a restaurant, is there something within I don't know the financial infrastructure of the restaurant industry. UM. And I think about those workers, the immigrant workers, whether they're working in the kitchen or you know, doing dishes

or what have you. You know, the virus has laid bare the problems that we knew that we're out there, and that is a lack of safety net for a lot of workers and a lot of different industries hotels, um, certainly restaurants. Is there something we need to think bigger picture so that God forbid we're facing similar situations in the future, that these workers are better protected. Yeah, we we need resiliency, you know, through the entire system obviously

for workers. But um, even if you think of me, if you're you're hearing about all these meat processing plants right now and how they're closing and estimates could be up to our meat supply could be could be compromised. Um. But that's because there's been so much corporate concentration and you know, these these companies are just getting larger and larger,

eating up smaller companies. And so we need to do is actually have a more resilient system and the food system that is spreading it out, that is relying on small regional producers. So if if one part of the segment gets gets gets you know, hurt because of coronavirus, are even because of of you know, a climate disaster, that we're more resilient. I think we need a safety that that is more resilient. But you know, here's one

way to look at this. So prior, prior to COVID, thirty six million Americans were on snap our food stamps in this country. So, uh, numbers that I've just got out of Maryland recently was that there's a seventy increase in applications. So if you extrapolate that out throughout the country, that's another people. Okay, eventually those numbers are gonna come down once the economy starts to turn. It's gonna take a while. But what are what are we aspiring to

thirty six million Americans on food stamps? No, we can do better than that. And I'm not talking about a handout. I was talking about people who are working, who can afford nutritious food. So you said you talk about in equity, and so it's it's it's something you can just look at dollars in tents, but really we're in equity plays out is in health. If you do not have the money in this country, calaries are cheap. Nutritions expand if you don't have the money to buy nutritious foods, you

aren't as healthy. You have diabetes, you have issues around BC and hards these and those are the people who are dying in the hospital because of COVID and these are in minority communities that typically are not sort of getting a fair shake. And that's what we need to change. So we need we need all of the country to

be more resilient. We need to bring back manufacturing so we don't rely on other countries and we can keep that supplying here, but we need to make even even what we're doing here in this country much more resilient. Not only are our business practices but are human practice. So we need to start investing in the human capital.

And So, Tom, does that change or in any way alter what you do on on the other side of this, I mean, I do wonder if it starts you thinking about new concepts or new locations or what what do you think about on the other side, Yeah, I'm not something we've always been thinking about, you know. We we try to buy through small producers is as much as possible. UM. We uh, you know our our our our pay rate

is probably above clearly above average in the country. UM. UM. But yeah, we're thinking of what what does new business look like? You know, It's what everybody's trying to wrestling with right now. What what does it look like on the other on the other end, I mean, I'm this is the conversations I'm having to to with my senior staff right now, UM, because I think going forward if we open up, when we open up, it's going to have to be a combination of takeout c s A boxes,

which you know, think about this. I have my supply chain and it's mostly small farmers and small fishermen, cheesemakers, and so if I can actually still buy from them and then turn my restaurant into a distribution center, so I'm kind of processing food. That's another avenue of business to get through, you know, to the other end, UM, returning a part part of what we do into the community Feeding center UM again to put more food through

the system. UM. And then also trying to figure out the best way to to to UM take care of our staff and take care of patents coming in UM to keep them safe and healthy. And so yeah, there's there's uh, there's a lot of changes that they're going to have to be made, but I and I think that they're all going to be looked at through the length of how do we make all of these systems much more reslient to write not only something like COVID,

but also UM climate change. You know, so many people are are are one climate adapter ways for losing their job. And that was chef Tom Collichio Carrol, a conversation we were really looking forward to, and a reminder that you know, chef's restaurant owners. They're right in the center of this from so many perspectives, obviously as entrepreneurs, as owners, as employers, and really for those of us who are just diners, you know, they provide such a key service, such an

important part of life. So someone we definitely want to keep in touch with. Well, absolutely, And like you know, we've been talking since we've been in shutdown mode about the fifteen million restaurant jobs around the country, so many though in the major cities including New York Park and so when we talk about getting the economy back on track, taking care of workers, I mean This is an important sector that cannot be forgotten, and this industry is really

asking for more help from the federal government. So I'm so glad we got some time with Tom to weigh in on that. You've been listening to Bloomberg Business Week Extra and be sure to tune into Bloomberg Business Week Radio Live Monday through Friday, starting at two pm Wall Street Time on Bloomberg Radio. I'm Jason Kelly and I'm Carol Masser, and this is Bloomberg