How Can Restaurants and Bars Save Cash and Cut Costs In Light of Recent Restrictions
This article was originally published in May 2020. Given the current circumstances, we think it is important that local bars and restaurants revisit the key questions and opportunities addressed in this article.
Everyone can agree that our local restaurants and bars are taking it on the chin right now. Restrictions preventing normal operations are starving these important local businesses of cash flow while financial obligations stack up.
How do local restaurants and bars navigate these strange and uncertain times? There are many areas of consideration that could reduce costs and increase cash flow. By asking the following key questions, you may identify opportunities to immediately relieve financial pressures:
- Does insurance exist to mitigate accruing losses?
- Does your commercial lease provide a means to abate rent or exit the lease?
- Can or should rent payments be stopped?
- Should you negotiate with your landlord to resolve a brewing crisis?
- Does your commercial contract provide a means to suspend or terminate performance obligations?
- Might your commercial loan agreement obligations be suspended during the COVID-19 outbreak?
- What are your options regarding your workforce
- Are government loans available (e.g., loans made available under new federal legislation)?