Seattle’s battered dining industry doing all it can to survive.
By Jordan Pickett
Faced with an economic depression and record-low customer flow, Seattle’s dining industry is on the precipice of complete collapse. The few businesses that remain operable have innovated in a bid to keep themselves and their industry afloat.
While all of his businesses closed quickly after the stay at home order began, James Beard award-winning chef and Seattle household name Tom Douglas hasn’t turned off every grill and flattop he owns. In fact, he did what some may consider unexpected during a pandemic and economic collapse: he opened a new location.
By Jordan Pickett
Faced with an economic depression and record-low customer flow, Seattle’s dining industry is on the precipice of complete collapse. The few businesses that remain operable have innovated in a bid to keep themselves and their industry afloat.
While all of his businesses closed quickly after the stay at home order began, James Beard award-winning chef and Seattle household name Tom Douglas hasn’t turned off every grill and flattop he owns. In fact, he did what some may consider unexpected during a pandemic and economic collapse: he opened a new location.
Serious TakeOut opened April 8 and operates out of Douglas’ warehouse in Ballard. “We already had a large catering kitchen and necessary licenses in place,” Douglas explained, “so opening up Serious TakeOut was an easy, inexpensive trial with a $15,000 pizza oven being the highest expense so far.”
In the first week of operations, Serious TakeOut pledged that $1 would be donated for each order placed. Douglas donated $1,000 to Food Lifeline after his first week of opening.
In the first week of operations, Serious TakeOut pledged that $1 would be donated for each order placed. Douglas donated $1,000 to Food Lifeline after his first week of opening.
While many restaurants around Seattle have introduced a contactless or to-go only business model similar to Serious TakeOut, a select handful of independent start-ups have opened in the midst of the stay at home order.
Chen Dien and his wife Trang Cao faced a difficult decision early this March. After months of building their storefront and business, they would either have to open during a quarantine or close up shop and wait it out.
Dien and Cao had searched fruitlessly since coming to Seattle for an authentic cup of Vietnamese style coffee. The couple finally made the decision that they would open their own coffeehouse and bring the Robusta coffee bean and traditional pour-over style method to Seattle.
Their business, Coffeeholic House, opened in Columbia City on March 17, just six days before Gov. Inslee’s stay at home order went into place. It hasn’t been the easiest opening.
Chen Dien and his wife Trang Cao faced a difficult decision early this March. After months of building their storefront and business, they would either have to open during a quarantine or close up shop and wait it out.
Dien and Cao had searched fruitlessly since coming to Seattle for an authentic cup of Vietnamese style coffee. The couple finally made the decision that they would open their own coffeehouse and bring the Robusta coffee bean and traditional pour-over style method to Seattle.
Their business, Coffeeholic House, opened in Columbia City on March 17, just six days before Gov. Inslee’s stay at home order went into place. It hasn’t been the easiest opening.
The biggest challenge Coffeeholic House faces is keeping customers safe.
But social distancing and sanitation aren’t the only worries right now; a lack of customers and revenue has plagued businesses across the city. The Small Business Administration’s Payroll Protection Program has recently made headlines as a potential savior for small businesses across the country struggling to keep their staff paid.
The PPP, established as part of the $2 trillion CARES act, is a “...loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis,” according to the Small Business Administration website.
Dien and Cao’s coffeehouse is a unique case that falls through the cracks of the PPP’s safety net. Because their business is so new, they don’t have the month-to-month reports required by the PPP to prove how COVID-19 has damaged their finances; they’re unable to receive funds from the PPP.
Even when a business is able to apply, the funding isn’t guaranteed. Seattle chef Eduardo Jordan is all too familiar with the concept. Jordan was among thousands of small business applicants who were informed on April 16 that just two weeks after the program’s launch, that the fund had run dry and they would receive no aid.
“My dreams are now shattered as I find myself personally faced with an uphill battle again, with no assurances,” Jordan said. “How is it that a person like myself -- who is extremely diligent, determined, and business savvy -- still misses the mark?”
Jordan’s goes on to express the general sentiment of many small restaurant owners across the country that the PPP loans “...have not been sufficient and are poorly executed.”
In the meantime, Jordan has been doing his part to keep the community nourished. His Ravenna neighborhood restaurant, Salare, is now operating as a relief and commissary kitchen as part of the Restaurant Workers Relief Program. The program is spearheaded by The LEE Initiative with Maker’s Mark as their primary corporate sponsor.
The relief program is specifically focused within the restaurant industry; the meals are free to any restaurant worker who is currently out of work. Jordan posts a public instagram story each day with an image of that day’s offering and sponsors, typically a hot meal with several snacks and essentials like rolls of toilet paper.
The LEE Initiative made an Instagram post on May 1, celebrating over 140,000 meals served across 19 cities as part of the Restaurant Workers Relief Program.
These charitable efforts have even extended beyond solely the restaurant industry. Dien and Cao recently opened their shop space to a local flower farm, Cha New Life Gardens, based out of Bellevue, “We let other farmers sell their bouquets at our space with no fee, no commission,” Dien explained. “We do it because we want to help other small businesses who are struggling too.”
Dien and Cao also took advantage of a temporary closure of their business at the end of March for some more direct philanthropy. During the closure they and their staff took part in a fundraising effort and brought donations of 60 fresh coffees and 40 pastries to the frontline medical staff of a local Virginia Mason hospital.
Throughout all of these stories of small businesses banding together, one question always loomed.
“How long can we keep this going?”
It’s clear that every business has taken a heavy hit financially.
But social distancing and sanitation aren’t the only worries right now; a lack of customers and revenue has plagued businesses across the city. The Small Business Administration’s Payroll Protection Program has recently made headlines as a potential savior for small businesses across the country struggling to keep their staff paid.
The PPP, established as part of the $2 trillion CARES act, is a “...loan that helps businesses keep their workforce employed during the Coronavirus (COVID-19) crisis,” according to the Small Business Administration website.
Dien and Cao’s coffeehouse is a unique case that falls through the cracks of the PPP’s safety net. Because their business is so new, they don’t have the month-to-month reports required by the PPP to prove how COVID-19 has damaged their finances; they’re unable to receive funds from the PPP.
Even when a business is able to apply, the funding isn’t guaranteed. Seattle chef Eduardo Jordan is all too familiar with the concept. Jordan was among thousands of small business applicants who were informed on April 16 that just two weeks after the program’s launch, that the fund had run dry and they would receive no aid.
“My dreams are now shattered as I find myself personally faced with an uphill battle again, with no assurances,” Jordan said. “How is it that a person like myself -- who is extremely diligent, determined, and business savvy -- still misses the mark?”
Jordan’s goes on to express the general sentiment of many small restaurant owners across the country that the PPP loans “...have not been sufficient and are poorly executed.”
In the meantime, Jordan has been doing his part to keep the community nourished. His Ravenna neighborhood restaurant, Salare, is now operating as a relief and commissary kitchen as part of the Restaurant Workers Relief Program. The program is spearheaded by The LEE Initiative with Maker’s Mark as their primary corporate sponsor.
The relief program is specifically focused within the restaurant industry; the meals are free to any restaurant worker who is currently out of work. Jordan posts a public instagram story each day with an image of that day’s offering and sponsors, typically a hot meal with several snacks and essentials like rolls of toilet paper.
The LEE Initiative made an Instagram post on May 1, celebrating over 140,000 meals served across 19 cities as part of the Restaurant Workers Relief Program.
These charitable efforts have even extended beyond solely the restaurant industry. Dien and Cao recently opened their shop space to a local flower farm, Cha New Life Gardens, based out of Bellevue, “We let other farmers sell their bouquets at our space with no fee, no commission,” Dien explained. “We do it because we want to help other small businesses who are struggling too.”
Dien and Cao also took advantage of a temporary closure of their business at the end of March for some more direct philanthropy. During the closure they and their staff took part in a fundraising effort and brought donations of 60 fresh coffees and 40 pastries to the frontline medical staff of a local Virginia Mason hospital.
Throughout all of these stories of small businesses banding together, one question always loomed.
“How long can we keep this going?”
It’s clear that every business has taken a heavy hit financially.
“The various liabilities added up quickly,” Douglas said in reference to his own financials. “In business ... you are constantly on vendor floats. When your business revenue completely evaporates, the vendor credits still exist.”
These credits can include things like 14 and 30 days-to-pay accounts with suppliers, sales tax, property tax, rent, and utilities. Those weren’t the only causes of sticker shock when Douglas went through his bills after closing shop. “We also had to pay out employee vacation pay upon
These credits can include things like 14 and 30 days-to-pay accounts with suppliers, sales tax, property tax, rent, and utilities. Those weren’t the only causes of sticker shock when Douglas went through his bills after closing shop. “We also had to pay out employee vacation pay upon
termination, which was about $400,000.”
Tom Douglas Seattle Kitchen terminated 840 out of 850 employees. As Douglas more directly puts it, “...we literally don’t have any businesses … we are starting from scratch.”
According to a survey by the National Restaurant Association, 3% of restaurants are already permanently closed, with another 11% at risk of permanent closure in the next 30 days. An 11% closure could mean upwards of 300 restaurants shuttered just in the Seattle city limits.
In an April 1 virtual town hall event with Seattle City Club, Douglas suggested that only 50% of his businesses would have a chance of reopening.
Tom Douglas Seattle Kitchen terminated 840 out of 850 employees. As Douglas more directly puts it, “...we literally don’t have any businesses … we are starting from scratch.”
According to a survey by the National Restaurant Association, 3% of restaurants are already permanently closed, with another 11% at risk of permanent closure in the next 30 days. An 11% closure could mean upwards of 300 restaurants shuttered just in the Seattle city limits.
In an April 1 virtual town hall event with Seattle City Club, Douglas suggested that only 50% of his businesses would have a chance of reopening.
”It takes a lot of money to inventory, to hire and train, to get systems up and running, to get dumpsters picked up again,” Douglas explained. “With our locations being in downtown, it’s even more of a struggle.”
The problems extend beyond simply having the cash to keep the lights on and the stoves hot.
The problems extend beyond simply having the cash to keep the lights on and the stoves hot.
“If you eliminate cruise lines, sporting events, theatre and live music performances, and hotel stays, you have effectively eliminated 75% of our traditional dining customer who was coming downtown to eat,” Douglas said.
Gov. Inslee’s four phase plan to reopen the state doesn’t allow for large gatherings like sporting events and concerts until phase four; a minimum of 12 weeks from May 1 according to the Governor’s own estimates.
Gov. Inslee’s four phase plan to reopen the state doesn’t allow for large gatherings like sporting events and concerts until phase four; a minimum of 12 weeks from May 1 according to the Governor’s own estimates.
Phase two of the plan would arrive sooner and potentially provide some relief as it allows restaurants to reopen with about 50% capacity and table sizes under 5 people. The issue remains, according to Douglas, that with a capacity restraint in place, the partial loosening of restrictions will not put restaurants in the black.
The phased plan does not allow bars to operate until phase three and even then, only at about 25% capacity. The bar, Douglas explained, “... is the most profitable piece of a restaurant business.”
Even in the face of such difficult circumstances, Douglas has found some solace.
Douglas explained that the 10 employees remaining in his company comprised what he calls a “Pilot Light Team”, a group whose talents would be the catalysts as he completely redevelops his business.
“It has been super rewarding to be working side by side with these people for the last few weeks,” he said. “It has also reminded me of all the things I love about working in restaurants.”
