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US restaurants vs coronavirus: The very real things US brands can do now

No, the coronavirus is not a major health threat in the U.S. at this time. But the fact is, that could quickly change, and there are some very real preparations brands can make now in the event the situation changes to the serious circumstances that China is currently facing.

Photo: iStock

February 6, 2020 by S.A. Whitehead — Food Editor, Net World Media Group

The toll the coronavirus can take on restaurant brands is being seen this week in the Q4 financial results released by Yum China, which operates in that sprawling nation, where the illness was first documented in Wuhan, China. As the company's initial financial results were released (see story here), trading late Wednesday in New York showed Yum China's stock value dropped 3.7% in New York, despite a particularly rosy 2019 when its value soared 43%. In a release this morning around those result, Yum China said it has closed about 30% of its stores there and reduced hours at others in response to the virus.

Stateside, fewer than 20 coronavirus cases have been confirmed. Given that relatively small number, at this time authorities say seasonal flu — which has claimed 25,000 lives this season — remains the bigger threat right now. Still, the effects on business in China has U.S. restaurateurs worried, and they're turning to experts in food safety and health for some pointers on what can be done to prepare for workforce and business effects of the coronavirus, should it become more rampant stateside.

"It is vitally important to operate on facts related to this outbreak. Incorrect information could draw attention and resources away from where they are truly needed."

-Paula Herald, Steritech

That's the word from the experts at both food safety-directed companies, like Steritech, and foodservice organizations generally, including the nation's largest, the National Restaurant Association. At the NRA, Director of Food Safety and Industry Relations William Weichelt said in an interview with this website that most of their efforts thus far have been around monitoring the situation in case it worsens.

Earlier this week, the association made a single-sheet digest of coronavirus-related information as it pertains to restaurateurs, available to help brand leaders know what actions they need to ensure they're taking even while the virus is a relatively minor factor here. Included information covers a description of the virus, how it's spread and symptoms, as well as individual prevention measures, like staying alert for signs of any type of illness in an employee.

"On something like this (coronavirus outbreak), where it is fluid situation, we're just keeping an eye on what's going on and understanding it. …" Weichert said in the interview.

"The CDC (U.S. Centers for Disease Control and Prevention) is still trying to figure out, on their own end, what is actually going on. … Once things get a little bit clearer, that's when we will have broader conversations with them, in terms of impact on the industry. So at this point in time, we're like everybody else and just keeping an eye on things and letting them work through the process that they need to."

At food safety consulting and solution provider, Steritech, technical consultant Paula Herald said they've heard from many brand leaders who are seeking prevention measures they can take while the overall health picture related to coronavirus in the U.S. appears to be less problematic.

Restaurant brands ask, 'What can we do now?'

"In general, our clients recognize that there is no cause for alarm in the U.S. at this time, but they are asking basic questions about preparation," Herald said in an interview with this website. "They want to know what to do to be prepared in case coronavirus becomes a bigger issue in the U.S.

"We advise them to take this opportunity to reinforce their standards to all employees around practicing good personal hygiene and not working while ill. And we encourage them to keep up to date on how the outbreak is progressing. … The effect in the U.S. has been very small so far, though that could change.

"Currently there are fewer than 20 people who have tested positive (in the U.S. as of Wednesday) and no evidence that it is spreading among communities here. There is no indication that anything other than the usual precautions are needed at this time."

Those include frequent hand-washing, avoidance the face with soiled hands, covering the mouth when coughing or sneezing, and maybe most of all, not circulating among others when you're sick, which tends to be a problem for many frontline restaurant workers who often are not paid when they miss work.

On that note, Weichert said, local health regulations should be any operator's guide in advising employees.

"Restaurants need to follow local health department regulations. …" he said. "The process of excluding employees that are showing symptoms is something that should already be part of their requirements from the health department. At this point, I would suggest continuing to follow those."

Another viral threat: Misinformation

Though Herald said coronavirus has not been documented as spreading within the U.S., seasonal flu is, underscoring restaurant operators' need to reinforce the importance of disinfecting all touchable surfaces from touchscreens and POS interfaces to freezer, door and cabinet handles and countertops.

In fact, Herald's view of the situation at the moment is that things are more likely to become problematic if misinformation and disinformation take a viral hold online or in person.

"It is vitally important to operate on facts related to this outbreak," she said. "Incorrect information could draw attention and resources away from where they are truly needed.

"China has several thousand confirmed ill and several hundred deaths associated with this virus. But the U.S. has fewer than 20 confirmed cases. By comparison, the seasonal flu virus is of much greater concern in the U.S. at this time. The CDC estimates that just since October 2019, the flu virus in the U.S. has caused up to 26 million illnesses, at least 180,000 hospitalizations and 25,000 deaths."

"Have a contingency plan for preparing for and responding to a potential pandemic and resulting crises. … The coronavirus outbreak is not currently at a pandemic level and might never reach that level, but now is the time to plan. You don't want to be planning in the middle of a crisis."

-Paula Herald, Steritech

Those are the facts. But at Steritech, Herald said their fears now revolve around the spread of exaggerated risks from the virus that may force sweeping changes in consumer behavior that currently is totally unnecessary. That kind of "fake news," she said, holds the potential to do a lot of damage.

"They may avoid eating out and being in large groups of people or frequenting buffets that are shared with other customers," she said. "They may place more carryout or delivery orders, so restaurants without these options may experience a drop in business volume as customers shift to eating at home, while those offering delivery and carryout may experience higher volume. Parties and group dining may become less frequent.

"Customers may make unrealistic judgments of the health of foodservice and grocery store employees, questioning the safety of food served by anyone with a cough, sneezing, wearing a mask, etc."

To curb the probability that the wrong information gets in the hands of those who would spread it, Herald said restaurant brands should ensure the information they get is both constantly up-to-date and coming from reliable sources like the CDC or World Health Organization. Then businesses should proactively relay that in a clear, understandable fashion.

As far as top actions, she suggests restaurant brands "Have a contingency plan for preparing for and responding to a potential pandemic and resulting crises. … The coronavirus outbreak is not currently at a pandemic level and might never reach that level, but now is the time to plan. You don't want to be planning in the middle of a crisis."

Additionally, she said brands should:

• Secure food supplies and distribution agreements, particularly since food is often dependent on international suppliers who may be more adversely affected than those in the U.S.
• Create a food security plan on restaurant premises to protect from theft, should shortages occur.
• Review company sick leave policies with human resources and in- or out-of-house legal experts regarding barring ill employees from working.
• Create a plan for managing widespread absenteeism that experts say could range from 15% to 30% in a pandemic, including limits on public transportation for employees.
• Verify communication plans and back up employee contacts to relay expectations for presence at work.
• Cross-train employees so that well workers can fill in for those who are ill.

Additionally, it's essential brands have programs in place to maintain a healthful work environment, including providing information on public health threats, good workplace hygiene and ample supplies for the same, routine disinfecting protocols and a reminder that though there is no coronavirus vaccine, the flu vaccine is still available and effective for those strains.

Photos: iStock.

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.