Restaurants can be more profitable after coronavirus


Landry’s CEO and Chairman Tilman Fertitta told CNBC on Tuesday that restaurants that manage to survive the coronavirus pandemic should be able to apply valuable lessons that could make their businesses more profitable. The billionaire restaurant and casino owner said 2022 “could be a spectacular year.” 

“I’ve never been one to always look out 15 months, but that’s what we have to do today,” Fertitta said on “Power Lunch.” “Because if we can get back, all companies, flat to negative 10% in same-store sales, I think these companies are going to have 10% better profits than they were going to have before this pandemic even started, because we’ve all learned to operate so much more efficiently.”

The coronavirus pandemic has had a devastating economic toll, and the restaurant and hospitality industries have faced the burden of government restrictions designed to slow the spread of Covid-19. Following forced closures of indoor dining in many states, restaurants have had to operate at lower capacity or make other safety modifications, adding to the operating challenges in an already low-margin industry.

In early March, when the U.S. had only about 260 confirmed coronavirus cases and before the outbreak was officially declared a pandemic, Fertitta sounded the alarm about the increasing financial difficulties being created by the coronavirus. He told CNBC his restaurant empire of over 600 locations worldwide, which before the coronavirus outbreak had about $12 million in sales per day, was losing an average of $1 million per day.

Big restaurant chains appear to be recovering faster than their smaller peers, according to a Bank of America study from July. For Fertitta’s company, he said Tuesday that “business is picking up” lately across the United States. Landry’s brands include Bubba Gump Shrimp Co. and Morton’s The Steakhouse. 

He pointed to the upcoming resumption of indoor dining in New York City, despite being limited to 25% capacity, as another good sign for the industry. Casinos also recently were allowed to reopen in New York state. 

However, Fertitta warned of a challenging few months ahead as the weather turns cold in many parts of the U.S. and the coronavirus coincides with seasonal influenza. 

“This could be a very rocky winter. But what I’m excited about is if we can get through the winter and see everything start improving, companies, including restaurants and hospitality and casinos, we’ve all learned to operate differently,” Fertitta said.

“What I’m trying to do is be positive. We’re going to get through this flu season, and everything is going to be OK, and we have some type of a vaccine [for Covid-19] or we’re going to continue to know how to treat this disease better,” he added. 



Source link

Discover

Sponsor

Latest

Stock futures flat as Wall Street set to enter last week of 2020

Traders work on the floor of the New York Stock Exchange.NYSEStock futures held steady in overnight trading on Sunday ahead of the final...

‘Black Panther’ star Chadwick Boseman dies of cancer at 43

Actor Chadwick Boseman, who played Black icons Jackie Robinson and James Brown with searing intensity before finding fame as the regal Black Panther...

Indian drugmakers will be ‘essential’ in Covid-19 therapy production

SINGAPORE — India's generic drugmakers will have an "essential" role to play in rolling out Covid-19 therapeutics to low- and middle-income countries, a...

Most of Netflix’s 2021 slate of TV, film won’t be hurt by coronavirus

Netflix's 'The Witcher'.Source: NetflixNetflix co-CEO Ted Sarandos said he's confident that the company's slate of films and television shows planned for release in...

Joe Biden to visit Kenosha, Wisconsin, on Thursday

U.S. Democratic presidential nominee and former Vice President Joe Biden speaks about safety in America during a campaign appearance in Pittsburgh, Pennsylvania, August...