As restaurants across the U.S. are managing through the COVID-19 crisis, the list below may offer some ideas to generate additional revenue and retain existing liquidity. A food and beverage accountant can also help you budget effectively during this crisis.
Check your state and local government for availability of disaster loans
Sell gift cards at a discount to generate cash
Consider scaling back the menu to “customer favorites” or creating a menu that allows for easier delivery and take-out
Consider modifying your service offerings to a grocery or market concept, offer daily food baskets with a variety of high-quality food items, offer the option to purchase prepared meals for 2 or 4 people
Reduce menu prices and/or offer discounts
Check your State for tax filing relief options - consider filing sales tax return without payment (noting that there is a risk that penalties could be assessed if state does not allow deferral)
Talk to landlords about reducing or eliminating the next 2 months of rent
Delay paying utility bills
Check your state to see if they have a liquor return or repurchase program
Debt covenant requirements - talk to your lenders to obtain an extension on audit or review requirements
Reach out to your insurance carriers to understand your coverage, discuss the impact of providing your own delivery services, closing restaurants, reductions in premiums and potential refunds due to less staffing, less claims, and less concerns with no dine-in.
Third-party delivery services - talk to third-party delivery companies about offering “no fee delivery” or reduced fees
Evaluate your prepaid accounts - are there certain things you can pay for monthly vs. multiple months at a time? Is it possible to get partial refund on some prepaid items and just make payments monthly?
Franchisees - discuss with your franchisor the delay of payment
As always, FAL is here to support you and your business in any way we can. Reach
out if you’d like to talk through any of the suggestions above or if you need the services of a food and beverage accountant.