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David Chang Speaks On The Restaurant Impact From COVID-19

David Chang Speaks On The Restaurant Impact From COVID-19

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Shane talks to chef David Chang and Marguerite Mariscal of-Momofuku about the collapse of the NY restaurant industry thanks-to COVID-19. Dominik: Nobody could foresee Corvid-19 (how exactly it happened) and what kind of impact it had. But for the food service business it hasn't been even the worst case scenario! This is due to the fact, that food intake isn't even a high-risk infection rate (other food-borne contaminants would be a far worse issue. The problem here is combination of the lack of government support for their citizens (medical pay, unemployment pay etc, the consistent development of the financial system to a more and more unsustainable model, but also overall the lack of quality-growth in restaurant and bars. -Government should take care of their citizens. This idiotic narrative of conservatives, which warn before big government lead to a total illusion - ghost threats were fought (war against terror etc) - just to divert the eye from the most important point: government is paid and elected by the people and should serve & protect the entirety of the people. -The financial system on the other hand didn't only stopped by multinational corporations and banks but also went into the restaurant business: It is not a criticism - but instead of growing very slow and fill up the safety-cushions, Momofuku (like most successful groups) opened more and more restaurants. And no - they also didn't reasonably ensured that their workers receive top salaries and top coverage (to build their own cushions)-But there is one more thing: The competition of restaurants and bars (one against the other, one category against the other category etc) kept the prices quite low. While cars with every new generation (5 to 10 years) become substantial more expensive (within the last decade cars became almost 30% more expensive - in average, dishes and drinks are not! That keeps restaurants, restaurant workers, restaurant owners (bars etc) most vulnerable, because rents, prices of produce, cost of living increases massively. --Unfortunately I also have to say, that the USA doesn't only start trends which are good, but especially also what is bad. Unification of restaurant workers is a mess, margins are low, monetary sustainability is decreasing etc. Yes - Leadership is needed - but maybe it is most important that people taking the initiative -in the industry-!
Date: 2020-05-17

Comments and reviews: 9


ghost kitchens are not a new thing. It was already there. Places needed to pivot to delivery. That is having a base of customers that they could contact and reach out to. Chang needed to NOT close a couple of his places. Put all the furniture against the wall and dive into takeout and delivery? I mean what is the problem here? The New York Times would have run an article on his delivery service and then it would have gone huge. I really don't understand. Why does chang look strung out like he just woke up after a bender. You have people/employees who can solve problems bring them in and let them do their jobs. I don't understand the knock against franchising. Isn't that what Chang does with his places? I mean it isn't the golden arches or an outback steakhouse but don't tell me he wouldn't want a Momofuku in every town paying him something every time they buy a bowl of ramen. And really I have a hard time listening to someone who is worth -60 million talking about how the government needs to swoop in and save the industry. -the industry? - it was ripe for widespread unionization. Most kitchen people I know work two jobs to make it to slave wage level. THis reminds me of Tom Wolfs the Right Stuff, when the Mercury seven start to believe that just because they have been chosen means that they are good at other stuff too. And the point is this, just because you were chosen doesn't mean you really belong where you are and/or you opinion matters. Come up with solutions, we all can see what is happening. People need solutions to pay their bills.
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David Chang it is quite simple. Two main segments to address: Staff sanitation: 1. Testing testing testing. Safe and near immediate reopening is possible and predicated upon this for this reason. Which seems to be impossible for this government. Some companies will invest in the testing of their employees to reopen in this way- ie antibody testing if appropriate, quarantine/isolate if RNA testing is positive. If negative on Ab testing, then a negative RNA test follows and has to be sufficient. There is no additional sanitation required - above and beyond theoretically intense restaurant sanitation measures -once the employees are evaluated in this way. Then it just comes down to 2) guests/customers - and vendors bringing in items - but food choices will need to potentially be reconsidered so that there are only heated or otherwise sanitized cooking methods used- eliminating salads or microgreens will have to be considered. So mainly it is guests- and for that it is dependent upon the government/locality's willingness to reimagine a truly safe and innovative new normal such as the dining on the streets closed off to cars as has been demonstrated in Europe. So the social animal maintains our need for social -gathering- in small groups while distanced and uses outdoor space in an innovative way while weather still permits. There si so much that we could do, it is a matter of the will
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Fascinating piece, but it doesn't even cover commercial real estate. How much commercial real estate do restaurants, bars, and hotels currently consume? The collapse of commercial real estate is what will drive the coming depression. Both David and Marguerite nail the future of restaurants: drive-in and cloud kitchens is where profit will be easiest to realize in the coming years. But they never focus on what that will do to commercial real estate. We were already teetering towards Great Recession numbers in March. By the end of May we could be looking at 25% of all hotels 40% of restaurants shuttered. Now toss in the retailers. Who is going to pay all that coin for no foot traffic, when all they need is a warehouse with a pickup window? Malls, done. Department stores, done. Stadiums, done. The Fed is about to own trillions and trillions and trillions of dollars of the best real estate in America.
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I don't know how these industries can be rescued. They completely rely on people like me, a middle-middle-middle-class person who historically spent a lot of money on things I didn't need, and couldn't really afford. I used to go to restaurants multiple times a week. Always going to happy hour and tipping everybody generously, going to upscale places for dinner, and heading to outdoor, waterfront places for Sunday brunch. It was fun, but it was a waste of my limited resources. How are we going to maintain this culture of excess, that the restaurant industry relies on, with unemployment sky-rocketing? Eventually, middle-income employers will start dumping workers too, and everybody is going to tighten up their belt. Now that I'm eating and drinking exclusively at home, I'm finding I have no need for bars and restaurants. I expect my personal expenditure on drinking and dining out to go down by 75% or more.
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Well with a lot of people impacted by COVID, if one was laid off, or hours slashed due to it, how do you expect someone to afford to eat out? The last thing someone will be thinking about is buying food at a restaurant, when they-re stressed out over how they-ll pay for rent/mortgage, bills, medicine, and other personal costs. - Also people now will tend to cook at home, in the long term it-s cheaper, healthier, and you know who is preparing your food, and what-s going in it. Not bashing restaurants as I-m sure most are hygienic. - I truly feel bad for restaurant owners now, often times they sunk in monstrous amounts of money to start their business, and now they have a strong likelihood of going under. Not to mention all the people, a restaurant employs. - Honestly with the massive economic impacts COVID is causing, it-s almost as if this country is heading towards a 2nd Great Depression.
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I appreciate the problems that this pandemic is putting forth and the safety net is more about taking care of the health of the American people and not the business of the American people. In a regular time frame restaurants especially in New York and larger cities constantly close and new ones open on a regular basis. There are statistics about this and there is no safety net for this because this seems to be the cutthroat nature of restaurants -- not all restaurants will succeed. If there was a recession this would still be a thing where restaurants would close and new ones would open but no one cares about that during a recession and even without a recession this still takes place. Why is that? It sucks but that is the reality over the long term so why are people avoiding talking about that outside the context of COVID-19?
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US is actually doing more than Canada so they are misinformed. -2000 Canadian dollars is -1400 USD first of all. So over 4 months, that's -5600 for Canadians whereas Americans got -1200 plus 600/week for four months (on top of their state's unemployment amount. So that's an additional -9600. Add that to the -1200 and that's -10, 800 in the US compared to -5, 600 for Canadians. In addition, a good majority of Americans received the -1200 (income-based) while Canadians get the -1400 USD if they're basically unemployed. Further, even kids in the US get -500. Moral of the story, US has a better program and don't listen to everyone who aren't experts or didn't do their research and just like to complain.
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Restaurants and food industry are the most stricken by the epidemic? More than hotel and travel industries. -You kidding me? Restaurants can still operate with deliveries. But hotels and travel businesses can't. -Restaurants will be able to operate from the moment the lockdown will be left up. Travel business and hotels won't. -Restaurants don't need to refund for unserved food. Hotels and travel business have to refund clients. -You would have done your homework, you would know that. -You manipulate the informations according to your own interests Shane. You started to do this with Vice for now several years. --You are the rich shadow of who you were 10 years ago. -Shame.
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Fast-food chains that offer the most practical choices given the circumstance will survive this ordeal. I don't see how people are gonna look to spend hundreds of dollars on fine dining experiences and more specialized food options. That's the sad reality of the food business. --What people don't realize is that the culinary scene for most of these chefs does not rake in a ton of cash. It's more of a day in day out survival set up that is dependent on cash flow and once you cut that off, it is unlikely you'll survive. This industry is fueled by passion mostly, not money, and its sad that some of them might have to look elsewhere or put their dreams on hold for now.
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