With cooler days and winter weather just around the corner, metro Detroit restaurants that enjoyed a reprieve from pandemic-induced losses during warmer months are bracing for the loss of their patio space and changes in customer behavior.
The hospitality sector is among the hardest hit by the COVID-19 crisis. According to a report released by the Michigan Restaurant & Lodging Association earlier this month, 23 percent of Michigan restaurant operators say it's unlikely they will be open in six months, and 74 percent don't expect a return to pre-pandemic sales within that time frame. One in six restaurants have closed nationwide, according to data from the National Restaurant Association.
Warmer weather and the opportunity to claim outdoor space to compensate for the 50 percent capacity restriction imposed under Gov. Gretchen Whitmer's executive order brought relief for many operators, who expanded outdoor dining on their properties and took advantage of local permit programs to allow for seating in public rights of way.
With the addition of an awning, picnic tables and planters, chef-owner James Rigato of Mabel Gray in Hazel Park was able to create a new seating area to compensate for nearly all of the venue's indoor capacity loss under the order. In May, Rigato invested in electrical work, outdoor heaters and secured a permanent outdoor liquor license.
"None of this felt temporary," Rigato said.
Enclosed outdoor spaces, including tents, canopies and coverings are considered "indoors" under the executive order. They are subject to the same restrictions on capacity and gathering size as spaces inside buildings.
Detroit Fleat in Ferndale is increasing the number of outdoor igloos it will operate this year from four to six; it also plans to reduce the number of patrons allowed per igloo from eight to six. The restaurant will invest about $15,000-$20,000 in igloos and additional safety measures for inside dining this winter, said Brooke Zadorsky, marketing manager with Detroit Fleat.
"We're trying to figure out what is the best way to sanitize and clean the igloo between parties and how we can make this as safe as possible," Zadorsky said. "We're also talking through what our procedure is going to be to make sure that air has been circulated to the igloo."
Godwin Ihentuge, who owns YumVillage in the Milwaukee Junction neighborhood in Detroit, hopes to apply for a city permit for a heated outdoor space this winter, possibly involving the closure of Milwaukee Avenue.
The city is working on renewing its Open Detroit program for outdoor restaurant seating in public rights of way that expires in November.
"We are trying to come up with a safe program that might be used through the winter months," Caitlin Malloy-Marcon, deputy director for Detroit's Complete Streets, said in a recent online conversation hosted by Detroit City Council President Brenda Jones. A new program would need to be approved by Council and comply with state guidelines.
Ihentuge had just secured a liquor license in February but had to pivot quickly when the pandemic hit, moving from a sit-down model to online transactions and curbside pickup. He's now in the process of converting much of his existing indoor dining space into a marketplace.
"As we are still uncertain with what will happen if there is going to be a second wave, we plan to just focus on converting our dining room into a boutique-style Afro Caribbean shopping experience," Ihentuge said.
Owners looking to winterize outdoor spaces have been greeted with tent and heater shortages and skyrocketing prices. Detroit Shipping Co. co-founder John Hartzell found that quotes for the same enclosed tent he installed last year for $45,000 are coming closer to $80,000 this year.
Detroit Shipping Co. has been operating solely with open-air outdoor seating over the summer months at a capacity of about 220. Even with a tent, Hartzell anticipates capacity declining to 100 seats come winter. He's also planning to convert to a full app ordering system, with staff running food and drink to tables so customers don't have to stand in lines.
Not every owner believes winterizing outdoor patio space is worth the cost or trouble.
"This is not a 'go to Home Depot, kind of fix this up myself' thing. We're talking many thousands of dollars," said Norma G's owner Lester Gouvia. "I have to be concerned that if that space isn't heated well enough, that food is going to go cold very quickly, and that's not the experience I want for our customer, and I don't think a customer wants to pay for that experience."
Instead, Gouvia is focused on making the interior experience as comfortable and safe as possible for guests. He said patrons were slow to return when the restaurant first reopened in July, but he's seen an uptick in recent weeks as customers' comfort level increased.
"As time went by, I think people got more comfortable when they saw what we're doing to create separation with plexiglass shields on the tables, as well as demanding you wear the mask," Gouvia said.
Kristin Jonna, owner of Vinotecca in Birmingham and Vinology in Ann Arbor, is also not keen on the concept of winterizing patio space. "Once you tent a space and then bring heaters in, you're basically creating a COVID incubator," Jonna said. "It's an issue of public safety. I think it's a very poor idea because there's no ventilation in a tent like that. I just can't do that in good faith."
Jonna has noticed a clear difference in clientele between her Birmingham and Ann Arbor locations, noting that Birmingham clients are "just a little looser. They dine in groups. They eat frequently at the restaurants, and they're not afraid to come inside" while Ann Arbor patrons have been a bit more reticent to dine indoors.
Bob Roberts, president of the Corktown Business Association and owner of McShane's Irish Pub, is exploring a novel concept. He's working with the Detroit Hispanic Development Corp. to convert large warehouse space on Trumbull Avenue into a sort of communal food hall where diners can go to order and consume food from Corktown restaurants, possibly serviced by a shared delivery system. He's still exploring the idea but believes it's feasible under current regulations and may be one way for area restaurants to survive what will undoubtedly be a challenging winter.
"With the social distancing and the 50 percent capacity, some of our restaurants can only fit 10 or 12 people, and it's really not worth them to be open for regular dine-in service, in particular, if we lose the outdoors areas also," Roberts said.
Ihentuge remains optimistic that YumVillage will survive through the winter, but he knows it won't be easy.
"It's very stressful," he said. "It's definitely not the same industry that I grew up wanting to be a part of. But at the end of the day, I think there's like a Drake song lyric where he says, 'I still love it, but I used to love it more.'"
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A plan for all seasons: Restaurants prepare for days when outdoor dining isn't so fresco - Crain's Detroit Business
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