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Top Michelin restaurants go bankrupt, celebrity chefs: The industry is on the verge of collapse

"Our industry is on the verge of collapse." Marcus Wareing, the chef of Britain's top Michelin restaurant, lamented recently.

The COVID-19 epidemic has swept across the world and severely damaged the world's top Michelin restaurants.

British Michelin-starred chef Marcus Wareing pointed out to Sky News that the annual value created by his industry exceeds 100 billion pounds. If there is no further policy support, many restaurants will face difficulties. closure, unemployment will also worsen.

Marcus Wareing made a bleak prediction: "If the government doesn't take action, the service industry will be one of the hardest hit areas, and the service industry will continue to be bleak for many years. You will see restaurants closing. , employees are unemployed, this is not what I want to see.”

Celebrity chef: Our industry is hanging on by a thread now

Two of Denmark’s top Michelin restaurants cannot survive, so apply. Bankruptcy.

Compared with summer, restaurants have relatively insufficient cash flow in winter. The epidemic crisis struck when the restaurant funds were almost exhausted. The parent company of these two Danish Michelin restaurants Kadeau Restaurant, a group company, has now entered bankruptcy process.

Kadeau Restaurant is a leading Danish catering company. CEO Magnus Klein Kofoed said frankly: "Our cash flow has bottomed out."

Super celebrity chef Daniel Humm laid off all employees at his Michelin-starred restaurant Eleven Madison Park in New York, saying "our industry is hanging on by a thread."

On March 15, the Eleven Madison Park restaurant closed due to the epidemic. The restaurant was still full the day before it closed.

Daniel Humm made a decision to transform his boutique restaurant into a community kitchen.

“I would love to reopen the restaurant as soon as possible, but the world is changing rapidly. I don’t know if we can get back to the status quo after the epidemic. I don’t know what a boutique restaurant means. I don’t know what luxury means. Our Restaurants rely on customers from all over the world, and I don’t even know if global travel will resume in half a year,” said Daniel Humm.

The well-known Hampton Manor Hotel in the UK has also felt the economic pressure brought by the epidemic. "If we do nothing, we will lose money in a month." £150,000," said James Hill, the hotel's general manager.

"People stole toilet paper from my restaurant bathroom, and it's hard to explain how things fell off a cliff in a split second," Michelin-starred chef Alex Stupak described 3 The apocalyptic scene when the store closed on March 13, "I watched people coming out of the high-rise building, holding boxes with their computers and monitors in them. I knew then that the business would never come back."

Popular Michelin-starred restaurants may not have much profit margin

A Bloomberg article pointed out that Michelin-starred restaurants that are among the most influential and popular in reservations may not have much profit margin, especially in international cities like London and New York. In big cities, operating costs are high, and no one is more anxious than these restaurant owners.

"Restaurant operating costs are very high. When we restart, we have no clue about consumer confidence and social distancing rules." Michelin-starred restaurant Core in Notting Hill, London Owner chef Clare Smyth said, “Our initial investment is huge and labor costs are very high. Before the epidemic hit, the service industry was actually in a tight state. The initial investment including furniture and decoration is up to one million pounds. You need to do quite a lot. Only by working hard can we ensure a balance of payments."

Switch to takeout to save yourself

Rasmus Munk, the chef of another Michelin-starred restaurant in Denmark, the Alchemist, simply picked up his philanthropic ideals many years ago and started to contribute to the cause. Meals are provided to homeless and vulnerable people in Copenhagen.

This can be regarded as a reflection of the light of humanity in the Michelin world during the epidemic.

However, feelings cannot be eaten as food, and practical problems still exist. Even a Michelin chef must make a living.

The Michelin chefs thought of an emergency plan and took advantage of the local atmosphere to make takeaways.

Even the New York Times lamented that during the epidemic, even Michelin chefs had to do takeout.

The Michelin-starred restaurant Liath in Dublin, Ireland, was forced to close during the epidemic. Chef Damien Gray temporarily suspended the restaurant staff. One person plays the role of N and the other is busy in the kitchen. Each person serves an affordable takeaway set meal of 19 euros. .

As a result, this takeout package became extremely popular, and it was almost as difficult to book a table as usual.

Despite the overwhelming demand for takeaway orders, the frustrated chef complained excitedly, "This is all for survival, screw survival."

Hampton Manor has tried many self-help measures. First, it "borrowed" money from partners and "transitioned" some employees to the German supermarket chain Aldi.

During the epidemic, Aldi supermarket's demand for employees increased, and Hampton Manor directly transferred some employees to Aldi supermarket for temporary "takeover".

Peel's, the Michelin-starred restaurant at Hampton Manor Hotel, quickly adjusted its business strategy and used the "buy one, get one free" model to create a new takeaway business.

It also does takeout, but the special thing is that for every "customized" meal sold by Peel's restaurant, it will be donated free of charge to the elderly or vulnerable groups in isolation. Another meal.

It not only adapts to the requirements of maintaining social distance during the epidemic, but also ensures the operation of the corporate team. At the same time, it also conveys the concept that people can give back to the community by spending money in the restaurant.

“We promote it as a buy one, get one free, but in fact we may donate more meals than we sell. We hope that through this Encouraging people to give back to the community by spending money with us," said general manager James Hill.

"But I think when we get out of the epidemic, this experience will help me understand what the new world will be like. This is a scary era, people are facing death, But I think we will definitely learn something from it."

Celebrity chef Daniel Humm said, "Catering is a wonderful industry because the core of the business is service and giving. After the restaurant closed, I was like, what can I give in a time like this? I have a super clean kitchen, I have connections with a lot of food vendors, and I'm able to prepare meals."

There is an answer to these self-questions. Daniel Humm has now transformed a boutique restaurant into a community kitchen, and the customers he serves have changed from global tourists to front-line anti-epidemic personnel, such as doctors, nurses, Police wait.

This initiative links farmers, food suppliers and other people from different industries, and drives related industries to overcome the current difficulties together.

Celebrity chef Alex Stupak chose the online sales and contactless delivery model to continue his cooking career. However, “This is not to make a profit, but to save money and pay wages. It is equivalent to oiling a bicycle chain while still being able to Let the whole car move."

There is a strong call for resumption of work, but it is impossible to imagine wearing masks

"We hope to restart as soon as possible," celebrity chef Clare Smyth revealed her and her colleagues. Voice, "At the same time, we don't want to put anyone at risk. I'm waiting for the government to issue guidelines. For example, will waiters be required to wear masks to provide services? If this is the case, what is the point? People go out to eat or drink, They want to enjoy the atmosphere and don’t want to eat in a soulless place.”

Marcus Wareing, the chef of Michelin restaurant Marcus, also said: “Our industry is eager to resume work, and we can do this. , but there must be a guide. ”

Cafes, restaurants, bars, clubs, etc. in the UK have been closed since March 20.

On May 10, British Prime Minister Boris stated that the British service industry may be restarted as early as July.

Marcus Wareing believes that the British Prime Minister's Office might have made more efforts on a macro level, but it did not. If the government could provide more favorable policies to the catering industry, it would be better when the lockdown was lifted. This is a good opportunity. The catering industry has a hard time chewing, and the government may wish to consider giving some meat on its bones.

"I feel very anxious about the future. I have no idea how to maintain social distance in the kitchen, or in the service industry as a whole." Marcus Wareing said.

The fragmented information on the British government's guidance has made it more difficult for the catering industry to resume operations.

"For me, for my colleagues, and for the entire restaurant industry, we all need guidance, and it’s very urgent. We can’t sit at home and expect some Fragmented information can tell us what to do in the future. "

Marcus Wareing said: "We are the first to close and will be the last. I am worried about the health of myself, my colleagues and the customers. The whole team works in the same kitchen, touches each other, tastes the food, and then the waiters bring the dishes to the customers. Maintaining social distance is not feasible in the entire service industry.”

Resuming work while maintaining social distance may result in losses

British food best-selling celebrity chef Yotam Ottolenghi also expressed his opinion on the resumption of work in the British restaurant industry. Subsequent operations have raised concerns that if social distance is required, the restaurant may not be able to operate at full capacity for a long time. If it loses 10%, a restaurant may go bankrupt; if it loses 20% or even 30%, a restaurant will inevitably Bankruptcy.

Marcus Wareing has a similar point of view: If restaurants have to operate at less than 50% of full capacity in order to ensure social distance, those restaurants with low profit margins are likely to be unable to make ends meet.

"You will find that labor costs, rent costs, water and electricity and other costs add up to make you unable to make ends meet." Marcus Wareing said, he called on the British government to set up a catering industry advisory group, Listen to the opinions of the industry and discuss the future development direction of the industry together.

Celebrity chefs look forward to government support - this is indispensable

Marcus Wareing believes that the government's commercial department also needs to further penetrate into the catering industry. In addition, financial support is also a necessary means, " We also need more help from the Finance Minister."

Marcus Wareing said that many business leaders in the service industry have come up with some "excellent" ideas, but to transform the concepts into reality, there are many things that need to be done by the government. Helping hand.

Whether in London or New York, celebrity chefs are eyeing the government for more support.

However, New York celebrity chef owner Dan Kluger said the U.S. Paycheck Protection Program, which was intended to provide business loans to small businesses, failed To help tide over the epidemic, however, the program ran out of money in the first round because it provided financing to some listed companies, and some small businesses did not receive financial support at all.

Has the situation of restaurants that received PPP financial support from the US government improved?

Not necessarily. Simon Kim, owner of a high-end Korean barbecue restaurant in Manhattan, said: "If you get PPP funding, you have to invite all employees back. If you don't bring them back within 8 weeks, Please bring everyone back and you will be screwed. We received PPP funding, but it did not play a practical role in solving the problem. Bringing people back within 8 weeks? You allow us to reopen within 8 weeks. ”

Will Michelin’s operations change after the lockdown is lifted?

How will Michelin restaurants operate in the post-lockdown era? Chefs have their own opinions.

Tom Sellers, chef of the Michelin-starred restaurant Story on the South Bank of the Thames, said: "I'm not sure what big changes are going to be made. What it was like before we closed will remain the same when we reopen. As it is, it’s important to give consumers the same experience before and after the epidemic.”

Jackson Boxer, the owner of two Michelin-starred restaurants in London, believes: “We will do it again. A city reopens with a different mood. Those who thought they could continue the pre-closure pattern soon learned the lesson. After the economic contraction, people ate out more often, but their budgets were reduced. They want bigger meals. They're spending less on quality wine and more on cocktails. We just know that we need to read the public mood carefully. . Assuming we reopen in six months, after the recession and spending cuts, I think the trend in food and beverage consumption will be around big portions, big tables, and richness. ”

Koya, London. Winter noodle shop owner John Devitt said: "Fine-end restaurants are used to high profile, but the entire industry will need to change. More and more people are working from home and don't want to sit in crowded restaurants. We will need to embrace every opportunity, takeout, online sales , distribution opportunities. Our precious brand has to evolve in a commercial direction, and we have no choice.

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Breaking out of the framework of the Michelin restaurant industry, Ratnesh Bagdai, head of RNB Accountants Ltd., pointed out that Michelin restaurants are now facing hard-core digital issues.

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RNB Accountants Ltd. Accounting firm has provided consulting services to many top restaurants in the United Kingdom and the United States. Ratnesh Bagdai, the person in charge, said, "It is important for a restaurant to have a good concept, but now we are talking about financial strength, personnel and basic cash flow. The rules of the game have changed. Fiscal discipline and business strategy will be key over the next nine months.

After the lockdown is lifted, will you eat Michelin?