The Denver Post

Restaurant­s find new revenue source in feeding the hungry

- By Jane Black

Opening night is always stressful, even if you’re opening for only a few dozen socially distanced diners. But on a recent Friday, after a four-month closing, chef David Zamudio still had to wait until almost noon to begin prepping the Wagyu steak and seafood paella on his dinner menu.

All morning, the kitchen at Alma Cocina Latina, in Baltimore, was busy making food not for restaurant guests but for the community — 370 boxes of pasta Bolognese with cherry tomatoes, mushrooms and a green salad, to be delivered to local nonprofit organizati­ons.

Alma, such as many restaurant­s, started a charitable-feeding program at the start of the pandemic, largely as a survival measure — a way to keep at least some of its staff employed while feeding the swelling ranks of the needy. During the last year, the initiative has served more than 100,000 meals.

Today, even as many other restaurant­s have ended their relief programs, and the arrival of COVID-19 vaccines offers hope for a return to something like normal, Alma has no plans to phase out its feeding effort. Irena Stein, a co-owner, has pledged to make charitable work a pillar of her business. The move will not only help fill a gap in Baltimore, where last November nearly 1 in 3 residents received food stamps, but it will also bolster the bottom line of Alma, an upscale restaurant hit hard by the pandemic.

“We started with a grand, generous idea,” Stein said, “and it has come back as a real business opportunit­y.”

Since March, restaurate­urs across the country have scrambled to find new revenue streams to prop up what many say was already a broken business model: inconsiste­nt income and slim margins that often translated into low wages and no benefits for workers. Some have begun to offer virtual cooking classes; others sell meal kits or monthly subscripti­ons.

But Stein is betting that feeding the food-insecure is a viable way to offset the high fixed costs of her restaurant — and she has company. Since April, Rethink Food, a New York nonprofit group, has invested more than $10 million in a program to pay 40 restaurant­s, most of them in New York City, to feed underserve­d communitie­s.

The organizati­on has also enlisted famous chefs, like Sean Brock in Nashville, Tenn., Stephanie Izard in Chicago, and Dominique Crenn in San Francisco, to produce meals at their own restaurant­s and serve as ambassador­s for the program, recruiting new chefs in their home cities.

Alma’s experiment began in March, when the city ordered all restaurant­s to close. Stein and her friend Emily Lerman, an owner of a catering company, decided to join forces to feed the community and keep their staffs employed. In April, they partnered with chef José Andrés’ nonprofit food-relief organizati­on, World Central Kitchen, to cook as many as 1,500 meals a week. In August, they formally named their new business Alkimiah — Arabic for alchemy.

Government reimbursem­ent rates for charitable meals tend to hover around $3 per meal. In contrast, World Central Kitchen pays $10. The higher rate, Stein said, was key to her program’s success: It allowed Alkimiah to serve food that was a sharp upgrade from the typical fare at community and senior centers.

Its meals generally follow the strict “EAT-Lancet” guidelines for planetary health, which emphasize whole grains, fruits, vegetables and nuts, and limit meat and dairy. A typical lunch may be caramelize­d onion dal with rice and curried cauliflowe­r, or Cajun salmon and grits with tomato-coconut gravy and roasted broccoli. The higher reimbursem­ent rate also allows Alkimiah to pay its cooks $16 an hour, plus benefits.

“José Andrés saved us,” Stein said. “Without him, we wouldn’t have been able to stay open or solidify next steps to expand the initiative.”

Zamudio, Alma’s executive chef, has been working on the plans since September, when the restaurant moved from a waterfront neighborho­od, Canton, to a much larger space in a gentrifyin­g area near the city’s train station. The first step was to design a kitchen that would accommodat­e two distinct businesses: Alkimiah’s charity operation and a busy restaurant.

That meant, for example, sacrificin­g space in the 1,500-square-foot kitchen that would have been used to store dry goods to create additional prep area for Alkimiah cooks. All but a few pots and pans will be stored in the basement, requiring cooks to make extra trips up and down the stairs.

Still, with a baseline of hundreds of meals a day for Alkimiah, Zamudio can place larger orders with farmers and other suppliers, and obtain discounts that add up over time.

Even though Alkimiah is not intended to maximize profits, the revenue it brings in will help offset the restaurant’s fixed monthly costs: rent, water, gas and phone.

“If a portion of those costs can be paid for by community meals,” Stein said, “it alleviates the realities of a restaurant that has very little profit margin.”

Matt Jozwiak, a founder and the chief executive of Rethink Food, sees the same potential in its Certified program, which offers independen­t restaurant­s long-term contracts to feed the hungry.

Rethink made headlines early in the pandemic when it took over the kitchen at Eleven Madison Park, a three-Michelin-star restaurant in Manhattan, to turn out food for hospital workers and Citymeals on Wheels. But Jozwiak says his intention was always to expand the program to lesser-known establishm­ents.

Rethink pays restaurant­s about $5 per meal and offers many of them food donations as well. On average, its restaurant­s serve about 1,000 charitable meals per week. According to Rethink’s calculatio­ns, that can provide nearly $5,000 a month in profits or, in a neighborho­od with lower rents, about one-third of a restaurant’s fixed costs.

“The nonprofit food system is a mess, and the foran profit food system is a mess,” Jozwiak said. “They’re really good when they work together.”

The big question is whether nonprofit groups and philanthro­pists will continue to fund restaurant­s’ community work once the pandemic is over. To date, Rethink has raised $10 million for its Certified program.

Alkimiah has also raised private donations, and has enough to keep running at least through summer. It continues to apply for city grants, and hopes to sign a catering contract to further support its commitment to feeding Baltimore.

“We can’t continue the restaurant industry as it was before,” Stein said. “This works as part of a new, more sustainabl­e business model.”

 ?? Dave Cooper, © The New York Times Co. ?? David Zamudio, the executive chef at Alma Cocina Latina, now plans menus for two distinct businesses: a community meals program and a busy restaurant.
Dave Cooper, © The New York Times Co. David Zamudio, the executive chef at Alma Cocina Latina, now plans menus for two distinct businesses: a community meals program and a busy restaurant.

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