As Chris Viola called his staff to give them the bad news, he felt eerily like he’d traveled back to March — the height of coronavirus panic.
Because just like in early spring, his two popular Asbury Park restaurants Barrio Costero and Reyla announced Sunday they would end both indoor and outdoor dining, instead opting for takeout and delivery only. Most of the staff would again be laid off.
The difference now: There is no government mandate forcing Viola and his team to close their Mexican and Middle Eastern eateries. They made the heartbreaking decision on their own.
“At the end of the day financially, based on our numbers in October and early November, it just doesn’t make sense to try and do this for the next couple months,” Viola said.
Meanwhile, the New Jersey restaurant industry is holding its collective breath. With COVID-19 numbers continuing to surge and indoor dining shutting down in other states and cities — including neighboring Philadelphia — some Garden State restaurant owners believe Gov. Phil Murphy will eventually shut down indoor dining even as he has stated otherwise.
If he doesn’t, 25% capacity isn’t nearly enough for restaurants to survive as the viability of outdoor dining dwindles. Opting for no on-site dining may end up being more profitable. Smaller payroll, less overhead.
Culture Collective, which owns both restaurants, isn’t waiting for government guidance. Viola expects that many restaurants will follow suit.
“I think the writing is on the wall, whether the governor makes the decision or not,” Viola said. “Just as a business model, 25% doesn’t work for our business. That’s just not enough volume. And the guests just aren’t going out. So the combination of those two things? Yeah, it’s going to be a long dark winter in our industry.”
The decision was hastened for Barrio Costero and Reyla after a staff member tested positive for COVID-19 in early November, promoting a 48-hour shutdown of both restaurants. That experience forced the group to look more closely at its financial projections.
Renowned Morristown restaurant Jockey Hollow Bar & Kitchen last week shuttered for the rest of 2020, also citing the lack of appetite for indoor or outdoor dining.
“It’s not even like there’s a choice, it’s what’s happening,” Jockey Hollow owner Cannon said. “You see what’s going on in New Jersey, it’s getting worse and worse every week. It’s just a matter of time before they shut everything down anyway.”
Across the river in New York, Danny Meyer’s Union Square Hospitality Group announced last week it would stop all on-premises dining at its restaurants, a development seen by many in the industry as a harbinger for the winter.
Viola believes the two restaurants are better prepared to pivot to takeout and delivery, having spent months doing just that at the beginning of the pandemic. The two restaurants will once again combine to form one takeout operation, and virtual cocktail classes the group is offering will also help maintain some income.
It was an essential move, Viola says, to survive the second wave of the pandemic — and be there serving tacos and hummus at the end of it.
“Our goal since this whole thing started was to be here in June of 2021,” Viola said. “The only, the best way to be here for that is to make sure that we’re financially in position to get through this.”
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Jeremy Schneider may be reached at jschneider@njadvancemedia.com. Tell us your coronavirus story or send a tip here.
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2 more popular N.J. restaurants shut down in-person dining. Here’s why more will follow. - NJ.com
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