Union Square announces mass layoffs
Juliette Faraut
Special Projects @ LinkedIn News | Driving global editorial campaigns
Danny Meyer's Union Square Hospitality Group has laid off 2,000 employees — roughly 80% of its workforce — due to the coronavirus outbreak. With forced closures sweeping the nation, the restaurant industry faces a dramatic decline in business and an unknown future. An estimated 5 million to 7 million jobs will be lost over the next three months, according to the National Restaurant Association. How does an industry that relies on service and community adapt in a time of "social distancing?"
Here's what some businesses are doing:
- The casual-dining sector is convulsing, with companies such as Darden Restaurants seeking to retrofit restaurants for takeout service only. The No. 1 chain and owner of Olive Garden restaurants citied sales declines of as much as 60% in areas where in-person has been banned.
- Chef José Andrés is turning eight of his DC and New York restaurants into community kitchens to offer affordable or free to-go lunches for those who need it.
- A fine-dining establishment in Seattle has replaced its closed restaurant by opening three pop-up shops: a bagel shop, drive-thru burger joint, and a "family meal" delivery service.
- A beer hall in Washington, D.C., has transformed into a relief center to aid service industry workers. Nearby restaurants are bringing packaged, to-go meals to the facility.
- Sweetgreen announced it will deliver free salads to local hospital workers and medical personnel.
- Uber Eats is waiving the delivery fee for small businesses in some of its markets. Uber is also giving away 300,000 meals to healthcare workers and first responders.
- Grubhub suspended commission payments from independent restaurants.
- Grocery stores have introduced "elderly hours" to allow older shoppers in before opening.
- Many restaurants are turning to free delivery, delivery zone expansions and contactless delivery methods in an effort to retain customers.
Head Chef at DOM DEMARCO'S PIZZERIA & BAR
We are still hanging in there but hardly anyone is coming in. To-go has increase to close to 60% and rising everyday. We averaged about 25-30%to-go sales before all this happened. Getting supplies from our suppliers is starting to get tough. A lot of out of stock items. The Las Vegas Strip is pretty much a ghost town since MGM announced they are closing all their properties. We plan to stay open but we are already thinking about doing take-out only to help with labor cost. Us and the Las Vegas Pizza alliance will be donating food to three square for as long as we can to help out our community. #vegasstrong