Maker City KC
The ripple effect: area businesses suffer with dining room closures
It’s been a little over three weeks since the Kansas City metro shut down restaurant dining rooms in hopes of slowing the spread of the Covid-19 pandemic. Since then, many restaurants have closed as they wait for the ban on dining to be lifted, others are offering carry-out menus, and still others have transitioned into on-line markets selling food, grocery staples, and liquor. Regardless of whether a restaurant is closed or is following a new business model, there is pain and suffering, both emotional and financial. And the suffering goes well beyond the restaurant industry. Tens of thousands of people in our metro, and millions across the country, are impacted by the devastation in the restaurant business. There is a ripple effect that threatens to become a tsunami, and it may only be weeks away.
Examples of that can be found throughout the area’s beer, wine, and spirits industries. I reached out to Christopher Meyers, co-owner of Raytown’s Crane Brewing, for some insight into what Crane is going through. It is not pleasant. “With the restaurants and bars closed, our distributors have no one to sell to. Almost immediately, we got emails from our distributors cancelling all orders,” Meyers said. “We went from four states to nothing. We have no way to generate income other than beer sales at our tap room.” Meyers says if the dining and bar ban extends much past the end of April, they might have to shut everything down. “Neither Michael (Crane’s co-owner) nor I are getting paid. Our spouses work, but it’s a struggle. The toughest thing is our employees and the next steps we take. I don’t think anyone really knows what’s to come,” Meyers offered.
Data just released by the Brewers Association, a group dealing exclusively with independent craft beer breweries, echoes Meyers’ thoughts. According to polling information from the association, 2.5-percent of craft breweries nationwide plan to close, and nearly 13-percent of the breweries said they were four weeks or less away from shuttering. “Personally, I can’t say I was surprised. I’m really hoping this hits home for the general consumer,” Meyers shared.
Despite the tough times and uncertain future, Meyers maintains a positive outlook. “Our distributor is supposed to place an order very soon, so that will help. I know we’re going to get through this. We and other businesses will have to change some of the things we do, but one good aspect of all this is how aware people have become about buying and shopping locally. I hope they keep that in mind when this is all over,” Meyers said.
They’re certainly looking forward to this being over at J. Rieger and Company Distilling. Rieger was just eight months into its new distillery and visitors center when it was forced to dramatically scale back production and close the consumer side of the operation, putting some 60 jobs on the line. “We had just gotten into the restaurant and bar side of the business, so this had a very profound impact on us,” co-owner Ryan Maybee told me. Fortunately, Rieger was able to save many jobs by pivoting and focusing its production on hand sanitizer. “It was definitely a win-win. We were able to quickly transition to provide a product that is greatly needed, keep our people employed, and generate a lot of good will,” Maybee said.
Maybee says production of the hand sanitizer has changed the way the company views its business model and they’ll continue making it after Covid-19 is just a bad memory. Still, he can’t wait to get back to full production of their line of J. Rieger spirits where sales have been dramatically slashed. “It’s been significant. We’re distributed in about 23 states outside of Kansas and Missouri from New York to California. I would say 80 to 85 percent of business in those states is bars and restaurants and they are all closed,” Maybee shared. Maybee says Rieger was investing heavily in that side of the business and putting a stronger emphasis on national distribution, so losing that has been tough. But he says there have been lessons learned. “It makes us re-evaluate how we do business moving forward. We could and will be stronger in the retail side. I’ve certainly seen the value in that.”
I’ve known Kenny Barham of Barham Family Farms in Kearney for years. Barham, whose farm has been in his family for more than 100 years, takes the time and effort to humanely raise and care for his animals. I was worried his inability to sell his products to restaurants would have a huge impact on his business and his family. Barham says it’s been bad, but not as bad as it could have been. “We lost all of the restaurants, of course, but luckily, we had our store and our on-line sales for deliveries, which really helped,” Barham stated. “Last month, we were able to make up for the restaurant sales. We’re off some this month, but we’ve got the farmer’s markets coming up, which is another income source for us.” Of course, Barham doesn’t know how many people will show up at those markets. He sells his products at the Liberty market, which opens the first Saturday in May. At least, that’s the plan for now. The opening of the Overland Park farmer’s market has already been delayed. Liberty could follow suit. “I know we’re just gonna have two or three farmers on each side, and consumers will be directed to walk in one direction, so it should be easier to maintain social distancing,” Barham told me.
Even with the farmer’s markets, the store, and on-line sales, Barham says there will be some belt-tightening. “We won’t raise any ducks and the rabbits will go in the freezer because the restaurants were the only ones buying those products. But we’ll be okay. I’m more worried about the restaurants and their staffs. Will they be able to survive this and reopen?” Barham pondered. A poignant question that only time will answer.
They’ve had to shift gears quickly at the Kansas City Food Hub, a collection of 17 small and medium-sized farms that supply fresh products year-round. “In a normal year, Bon Appetit Management Company is our biggest customer. They’re in kitchens all over the metro preparing food for employees at companies like Cerner and American Century Investment,” Alicia Ellingsworth, Sales and Production Director for the Kansas City Food Hub, told me. “There are no employees in those offices now, so there’s no need for our produce.” The Food Hub also has a significant presence in area school districts, more business lost as schools closed. “Schools were important customers because they feed a lot of kids, obviously. But beyond that, our group has a vested interest in educating children about farming and farm practices. Feeding kids is important to us,” Ellingsworth said.
Fortunately, Ellingsworth says farmers are nimble and agile, and the Food Hub has switched its focus from businesses and schools to neighborhoods. “We’ve created neighborhood farm share boxes where we deliver boxes loaded with produce to neighborhoods across the metro. We have two neighborhoods on board right now with three more coming on next week along with six housing developments,” Ellingsworth stated. “People have been beautifully receptive and we’re getting to know our neighbors, which is a great benefit.”
The Kansas City Food Hub was just dealt another blow with the delayed opening of the Overland Park Farmer’s Market. Ellingsworth chooses not to dwell on the negative. “I think if I have a message to get out there it’s that we’ve been preparing for this for years. We know each other. We like each other. It’s time now to put that practice into action. To hold fear back, see opportunities, and reach out and grab those opportunities. We have the chance every day to operate in fear or to operate in hope. I chose the latter,” Ellingsworth said.
You can learn more about neighborhood farm share boxes, which will provide consumers fresh produce from dozens of farms, by visiting https://thekcfoodhub.com/farm-delivery-box/.