By Mike Sunnucks | Rose Law Group Reporter
Craig DeMarco is on the front lines of economic and business fallout from the Coronavirus. He also expects the pandemic to usher in changes in business operations and consumer behaviors.
“It’s going to be a different normal. We are going to have to address that,” said DeMarco, a partner with Upward Projects. The restaurant company is known for its Postino, Joyride Tacos and Federal Pizza brands. He has also been involved in some real estate developments.
So, DeMarco is seeing COVID-19’s impact on restaurants and real estate. Both industries have felt the brunt of business closures and ‘shelter in place’ orders and behaviors.
DeMarco was on the panel of Rose Law Group’s New Virtual Power Lunch Friday. He said the immediate focus for restaurants is surviving the pandemic’s impacts and “keeping as many people employed as possible”.
He also said the Coronavirus is prompting restaurants and other businesses to look at their operations.
“We are learning a lot of about your company right now. Great sales hide a lot of inefficiencies,” DeMarco said.
DeMarco said the key is for restaurants and other tenants to communicate with landlords and vendors.
“Everyone is in the same position,” DeMarco said during the virtual round table hosted by Rose Law Group.
He said a logical path for restaurant tenants may be to put off April rent payments to landlords. “We just want to defer it,” DeMarco said.
Rose Law Group Managing Partner Jordan Rose said restaurants and other small businesses can apply for U.S. Small Business Administration loans and assistance via the $2 trillion stimulus program. Rose said some of the SBA assistance programs hinge on employers not laying off workers or cutting jobs so business owners should talk to informed advisers about how to proceed.
DeMarco said the industry is coming together to help impacted workers as well as smaller operators.
He also expects to see the curbside pickups and take outs to be a growing segment of the restaurant business after the current situation. He is also already seeing upgrades and innovations in how food is handled and as well as touch points. That includes not having customer sign receipts with pens and having wait staff go through more extensive hand washing regiments.
He also pointed to the last downturn when new local restaurant concepts and creative locations were born out of the real estate crash. He expects to see that after the unprecedented impact of COVID-19.
“I think you are going to see a lot of that as we ramp back up,” DeMarco said.
