The Impact Of COVID-19 On Upscale Restaurants
At the time I write this, every upscale restaurant in Lagos has shut down its in-restaurant service to prevent the spread of the coronavirus. The restriction on large gatherings has left them with few options to keep the business going. For some, like Tarragon and La Taverna, the business is going on an indefinite hiatus.
Chef and owner Cristian Duhalde says his Chilean restaurant, La Taverna, is on complete lockdown. “Everyone needs to close and not even delivery. We need to be very responsible in this matter", says Cristian. Chef Alex Oke, of XO Bakery, is also aligned in this thought. XO Bakery’s operations are closed indefinitely until the dust settles. “[…]we had staff members who were coming and going. They could’ve easily gone in public transportation and brought the virus in. And, once it's inside, we can then spread it everywhere with delivery”, says Chef Alex.
But for many restaurants, a complete shutdown is off the table. Sure, closing is the right thing to do, but it’s a difficult decision to make. For these restaurants, last-ditch pivots to takeout and delivery are all that’s left, but that doesn’t offer any security either. The typical burn rate of a restaurant means many will erode their reserves if the restrictions last any longer. There’s a fear among many owners that if this crisis extends deep into April, it might be the point of no return. It is a risk these restaurants are willing to take because temporarily laying off staff, which is what happens, with no money in this period could be just as harmful.
What we’re seeing is unlike anything we’ve experienced in Lagos. I’ve seen some compare it to elections and the Ebola crisis, but this is nothing like either. While elections force businesses to close shop, those closures are not seemingly indefinite. The Ebola crisis might have been more fatal, but Lagos contained that pretty well. No businesses had to close. Banks, probably the greediest of all, have had to turn to skeletal operations.
Atmosphere Rooftop is one restaurant that’s pivoting to delivery. For General Manager Adetoni Aladekomo, it’s a two-pronged decision. “It was a safety concern for our staff, our customers and Nigeria as a whole. [Also] If you can get the services you loved delivered to your doorstep then you wouldn't feel the need to come out”, says Adetoni. Atmosphere Rooftop is offering a delivery-specific menu during the period. According to Adetoni, “It's already depressing enough. Might as well give them options. Not every time, rice at home”
NOK, our 2017 Restaurant of the Year, is another restaurant turning to innovation in this trying period. Their recently launched #NOKOUT service features a streamlined version of the NOK menu designed for takeout. NOK isn’t the only upscale restaurant going this route. Shiro, also, is currently offering a delivery service powered by Jumia Food. Salma’s and Cactus have gone a step further by offering a 10% discount on delivered orders.
For 17 years, Talindo hasn’t shut its doors for a single day or offered a delivery service. All of this changed when the coronavirus hit Lagos. For Claudio Indovino, chef and owner of Talindo, something had to be done. “This is definitely an unprecedented situation and we are doing our best to keep our staff and customers safe […] we have been limiting the number of customers allowed in and sitting them as far apart as possible, but it's all getting a little ridiculous. So might as well resort to safer measures”, says Claudio.
For upscale restaurants built on the back of fully reserved dinners, the transition to takeout and delivery is going to be a challenge. They must not only contend with sales coming in trickles, they must adjust menus as not all finely plated dishes translate well in a to-go container. On adjusting his menu for delivery, Claudio says, “My brownie and Jack Daniel's steak are both off the menu as they can’t really be delivered and hope to retain the same temperature, flavour or presentation”.
It might be a crisis, but reputations are at stake too. Some menu items don’t travel well and this isn’t the time to take risks.
It’s not just menus getting streamlined, the staffing too. At Atmosphere Rooftop, after paying March salaries in full, Adetoni had to make the tough decision to streamline her staff. It’s not a layoff, she says, but only essential members of staff come in to run what has essentially become a cloud kitchen. “All the staff staying volunteered to stay. [I] actually wanted less staff but too many people wanted to stay so we just accepted them”, Adetoni added. The staff all stay in staff quarters across the street from the restaurant to eliminate the need for a tedious commute. The objective of this period isn’t to make profits, it’s to make enough money to keep the staff paid.