Restaurant owners struggle to stay afloat during shutdown
MILWAUKEE — It’s Saturday night at Odd Duck, a popular restaurant in Milwaukee’s trendy Bay View neighborhood.
The kitchen is packed with chefs and managers preparing carryout orders. But the dining room has been empty since the state ordered all Wisconsin restaurants and bars closed on March 17 to help prevent the spread of the new coronavirus.
Wisconsin Gov. Tony Evers and the state Department of Health Services says these measures are working. But for many, COVID-19 is having more of an effect on their financial well-being than their health.
One in four Americans have lost their job or income due to the pandemic. And perhaps no industry has been hit harder than restaurants and bars.
The Wisconsin Restaurant Association says at least half the state’s establishments have shut their doors completely during the pandemic. Others began offering carryout services.
Melissa Bucholz, the owner of Odd Duck, said making the transition was hard because the restaurant had never offered it before.
“We literally didn’t have bags or to-go boxes, we had to rewrite the whole menu for something that would work for carryout,” Bucholz told Wisconsin Public Radio.
Business at Odd Duck is down 70%, but they’re holding on. The restaurant normally has 36 employees. Now, they’ve got 14. They self-isolate, to stay healthy and keep the restaurant running.
Odd Duck has created a pantry to feed its workers. And tips the working employees are given are donated to those who have been laid off from the restaurant.
Bucholz considers herself lucky. The restaurant has been in business for eight years. It is established, has good cash flow and is out of debt.
“If this had happened in year two of business, we would not be standing at this point,” she said.
Kristine Hillmer, president and CEO of the Wisconsin Restaurant Association, said even restaurants that are open for carryout have seen a reduction in revenue from 50% to 70%. And when the pandemic ends, as many as half the state’s restaurants could permanently close.
“Some have just decided to close their doors right now, and focus on reopening,” Hillmer said. “The longer this goes, the less likely that is going to be.”
Some restaurants tried to convert to carryout but stopped after a few weeks. That’s what happened at Bounce Milwaukee, a restaurant and inflatable sports arena.
Owner Becky Cooper Clancy said March is usually the restaurant’s busiest month. This year, sales were down 80%.
“We had to make decisions where we were deciding basically what’s good for the business or what’s good for the employee. And it’s really needed to prioritize taking care of our employees,” Clancy said.
Most employees have been furloughed, given severance packages and promised jobs when the economy is better.
Tony Marquez, owner of La Estacion in Waukesha, says he doesn’t know how he’s going to pay for the restaurant or his personal bills. He’s keeping his restaurant open for carryout in an attempt to survive.
“We didn’t create this,” Marquez said. “We were working, running our business. Next thing we know the carpet is moved from our feet and we are left out to sea. If you can swim, swim. If you can’t, you can’t.”
In April, small businesses could begin applying for loans and grants contained in the $2 trillion federal stimulus package known as the CARES Act.
But the restaurant association’s Hillmer said there are still a lot of unknowns and likely many restaurants won’t be open in time to take advantage of the federal programs.
Bucholz said owners need clear guidance, bridge loans and financial support for their staff.
“We are really busy trying to save our businesses,” Bucholz said. “We don’t have time to slog through millions of miles of paperwork and websites.”