by Marion Nestle

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Apr 28 2020

Coronavirus: effects on the restaurant industry

Recall that Americans spend about half our food dollars on food consumed outside the home.   Therefore, the virus-induced closure of restaurants affects food supply chains, but it also affects restaurant workers, owners, operators, and patrons.

Restaurant workers

A survey by the New York State Restaurant Association says 80 percent of state restaurant workers have been laid off since the outbreak started—more than 527,000 people.

In a letter to Congress, the National Restaurant Association says 8 million restaurant employees have already been furloughed or laid off, or two-thirds of the entire workforce.

The New York Times reports that restaurants account for about 40 percent of COVID-19 related layoffs, the most of any industry.  This statistic is based on New York State Department of Labor data.

Restaurant owners

To get an idea of what this is like for small restaurant owners, read Gabrielle Hamilton’s account in the New York Times Sunday Magazine: My Restaurant Was My Life for 20 Years. Does the World Need It Anymore?  Hamilton is the award-winning chef-owner of Prune, a small restaurant in Manhattan’s East Village.

The Wall Street Journal reports that restaurant chains cannot adequately source masks and gloves for their employees.

Restaurant patrons

Tom Sietsema, the restaurant critic for the Washington Post, writes about what it feels like to not be able to go to restaurants.

Gee, do I miss the good old days. And boy, am I trying hard to summon them from home. Honestly, though, my new acquaintances Caviar, Postmates and Uber Eats can never replace all the in-the-flesh servers and chefs who have made Washington a premier restaurant destination in recent years.

The bailouts

Restaurants are having special problems with the government’s forgivable loan program.  It turns out, the expansion of unemployment benefits authorized by the $2 trillion stimulus package sometimes pay workers twice their restaurant salary.

What?  Unemployment benefits pay MORE than restaurant work?  The shocking figures: unemployment benefits go to an average high of $970 per week, but this is nearly double average weekly pay within the food industry.

The $350 billion loan program quickly ran out of money when more than 46,000 loans were approved.   Food services firms got $30.5 billion.

Most of the money went to large restaurant firms: ‘The Big Guys Get Bailed Out’: Restaurants Vie for Relief Funds

The provision, in a section outlining which small businesses qualify for loans from the federal government, allowed big chains like Shake Shack, Potbelly and Ruth’s Chris Steak House to get tens of millions of dollars while many smaller restaurants walked away with nothing when the $349 billion fund was exhausted last week. On Monday, Congress and the White House were nearing a deal to replenish that fund with $300 billion in additional relief.  The inequity caused widespread outrage. Independent owners said it would create a post-pandemic landscape in which chains dominated and small, vibrant restaurants collapsed. Some lawmakers said the outcome had violated the spirit of the legislation.

Chains like Potbelly, Ruth’s Chris Steak House and Taco Cabana qualified to get the maximum $10 million in loans even though they employed thousands of workers.

Some of these companies had been making money but spent it to buy back their own stocks.  As the New York Times reported Some Companies Seeking Bailouts Had Piles of Cash, Then Spent It.” Those companies, includingd KFC, Wendy’s, and Papa John’s, among others, asked for $145 billion in relief.

These companies had been highly profitable in recent years, yet they were seeking help from the federal government. Where had all their money gone? Like much of corporate America, the restaurant chains had spent a large chunk on buying back their own stock, a practice aimed at bolstering its price. Some were even more vulnerable to the economic shock because they had previously increased their borrowing — including to fund buybacks or pay dividends — and strained their credit in the process.

Some companies, embarrassed by the uproar, returned the funds.  The first to do so was Shake Shack (see Danny Meyer’s statement) 

Now the restaurant industry wants its own targeted recovery fund, as it explained in a letter to Congress.

What will restaurants look like in the future?

For sure, they will be different.

The National Restaurant Association, which represents chain restaurants, issued new general guidelines.   These largely defer to government regulations, but leave most practices to owners’ discretion.

Independent restaurant groups are trying to develop more detailed protocols.  They refer to a set of guidelines  issued by the founder of Black Sheep Restaurants in Hong Kong.

I hope that the revelations about how badly restaurant workers are treated and paid will inspire legislative action.

To me, the most shocking revelation is how restaurant workers who rely on tips do not qualify for unemployment insurance in some states because their salaries are so low that they do not meet earning requirements.  That has to change.

Dec 27 2017

Planet Fat: The New York Times series on global obesity

Since September, the New York Times has been investigating how the food industry markets its products in the developing world, and how this marketing is encouraging a rising prevalence of obesity and its health consequences. The series is called Planet Fat.   This is the complete set to date, in reverse chronological order.

If you haven’t read them, this week is a good time to catch up.  Enjoy!

One Man’s Stand Against Junk Food as Diabetes Climbs Across India

India is “sitting on a volcano” of diabetes. A father’s effort to ban junk food sales in and near schools aims to change what children eat.

Dec. 26, 2017

 

Dec. 23, 2017

 

Dec. 11, 2017

 

Nov. 13, 2017

 

Oct. 2, 2017

 

Oct. 2, 2017

 

Sept. 16, 2017

 

Sept. 17, 2017

 

Jul 31 2017

Bakery and Snacks Special Edition: Grain-Free, Gluten-Free

BakeryandSnacks.com is another industry newsletter I subscribe to for keeping me up to date on what’s happening with baked goods and snacks.

Special Edition: Is grain-free the new gluten-free?

Grain-free may still be niche but it’s gaining traction among consumers who perceive it as the next step to better health. ‘Going completely grainless’ is becoming increasingly popular among consumers who are moving away from processed foods and incorporating natural ingredients, such as nuts, legumes and pulses, into their diets that boost their intake of proteins and minerals. The grain-free trend is an extension of the gluten-free trend, which is predicted to reach $4.35b by 2013 in the US, according to MicroMarketMonitor.

And just for fun, I’m adding this fascinating one from the B&S daily feed:

Feb 25 2016

Food Navigator-USA’s Special Edition on on Oils and fats

Is fat really good or bad and, one way or the other, is it really back?

Food Navigator-USA has an interest in fats from the perspective of companies that use them in food processing.  Here’s what it says:

Fats are often classed into good, bad and ugly categories. But do consumers know which are which, and how can manufacturers help increase consumption of the healthier variety (MUFAs and PUFAs) and reduce trans- and saturated fats (and that’s assuming that saturated fats really are the bogeyman many dietitians have made them out to be)?

Protein is hot, sugar is public enemy #1, and fat is back (so the trend-watchers say). But when it comes to good, bad and ugly fats, does everyone agree on which are which? Check out our gallery of insights from consumers, industry stakeholders, and the 2015 Dietary Guidelines Advisory Committee…

Cobram Estate will enter US to fill what it says is a void in high quality, extra virgin olive oilsAward winning Australian olive oil manufacturer Cobram Estate in February will extend its reach into the competitive US market, which it says suffers a dearth of high quality, extra virgin olive oils. .. Read

Solazyme to launch algae butter in early 2016: We’re offering a hard fat from a completely new sourceSolazyme is aiming to launch the latest addition to its micro-algae-based ingredients portfolio in early 2016 – an algae butter – which it says could replace hard fats such as palm oil or partially hydrogenated oils in a variety of applications spanning confectionery, bakery and spreads… Read

Do we need new labeling conventions around fully hydrogenated oils?Fully hydrogenated oils (FHOs) do not create harmful trans-fats, and could replace partially hydrogenated oils (PHOs) in many applications. However, manufacturers are reluctant to use them because the word ‘hydrogenated’ has become “demonized”, argues one expert, who says efforts are underway to find an alternative name for FHOs that will satisfy manufacturers, consumers, and regulators.  .. Read

Judge stays Gen Mills trans fat lawsuit, but FDA has left firms exposed to civil litigation, argue attorneysIn a ruling that will be read with interest by food manufacturers worried about being sued for using partially hydrogenated oils (PHOs), a judge in California has stayed a PHO-related class action vs General Mills until the FDA decides whether certain low-level uses should be permitted… Read

JM Smucker to settle lawsuit over ‘all natural’ claims on Crisco oils made with GMOsJM Smucker has agreed to settle a class action lawsuit accusing it of misleading shoppers by labeling selected Crisco cooking oil as ‘all natural’, according to court papers filed in New York… Read

Solazyme unveils Thrive, the first culinary algae oil in the market and its first consumer food brandMicroalgae specialist Solazyme has moved into the consumer packaged goods (CPG) arena with the launch of Thrive, a culinary oil from algae that will make its debut at upmarket grocer Gelson’s Markets in southern California this week… Read

Solazyme expands algae oil JV with Bunge to develop ‘breakthrough” products for food and animal nutritionSan Francisco-based microalgae pioneer Solazyme has expand its joint venture with oils expert Bunge to develop a “range of breakthrough oils for food and products for animal nutrition”… Read

Extra virgin olive oil exec: You wouldn’t buy rotten meat or stale bread, so why are you buying rotten olive oil?Claims that much of the extra virgin olive oil (EVOO) sold in US supermarket is not ‘extra virgin’ at all are hardly new. But the fact that many retail buyers are effectively turning a blind eye to such widespread fraud is immensely frustrating for companies that are playing by the rules, says one industry expert… Read

FDA revokes GRAS status of partially hydrogenated oils; allows food industry to file petition to permit specific usesAs widely expected, the FDA has finalized plans to revoke the GRAS (generally recognized as safe) status of partially hydrogenated oils (PHOs) in a bid to eradicate artificial trans fats from the US food supply. However, it says manufacturers may petition the agency to permit specific uses of PHOs… Read

Dec 19 2014

Farewell to the Colber(t) Repor(t). Alas.

Food Politics will mourn the passing of the Colbert Report.

What, you might ask, did the Colbert Report have to do with Food Politics?

Plenty.

For one thing, I was lucky (well, nonplussed) to appear on the show in August 2009.

The topic?  Sugar trade policy.

Oh.  Of course.

Screenshot 2014-12-19 09.01.08

I explained what this was about in a blog post.

Better, Colbert did occasional pieces: Thought for Food.

Eater has collected them all in one place (thanks to Eleanor Talbot West for sending).

Or, if you want to watch them separately…

It was great while it lasted.  I will miss the brilliant satire.

Addition: A reader just sent this link to Colbert’s in-character testimony to Congress on agricultural labor issues (from the expressions on the faces of the people sitting behind him, they must have been taking him seriously).

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Mar 14 2014

Weekend reading: Balancing on a Planet

David A. Cleveland.  Balancing on a Planet: The Future of Food and Agriculture.  University of California Press, 2014.

Here’s my blurb for this one:

In Balancing on a Planet, David Cleveland sets forth the evidence for this plea: if our world is to have a future, we must engage in serious critical thinking about the practices and consequences of our current food system and find immediate ways to transform it to one that is more sustainable.

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Feb 14 2014

President’s Day Weekend Reading: The Diet Fix

Yoni Freedhoff.  The Diet Fix: Why Diets Fail and How to Make Yours Work.  Harmony Books, 2014.

Ordinarily I don’t pay much attention to diet books but this one comes from the Canadian obesity physician, Dr. Yoni Freedhoff, whose Weighty Matters blog is fun to read and well worth following.

The key to healthy dieting, he says, is to avoid dieting’s seven deadly sins: hunger, sacrifice, willpower, restriction, sweat, perfectionism, and denial.

This sounds hopeful.

Instead, you are to reset your relationship with food forever, starting with a 10-day preliminary experiment in which you get ready, keep a diary, banish hunger, cook, think, exercise, indulge, eat out, and set goals.  Then you move forward, one day at a time.

“You absolutely CAN do this,” he says.

This is a seriously mindful weight-loss program that works well for his patients.  It ought to.

Give it a try?

The book even comes with recipes.

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Oct 8 2013

Midweek reading: “Disease-Proof”

Katz D, Colino S.  Disease-Proof: The Remarkable Truth About What Makes Us Well.  Hudson Street Press, 2013.

Here’s the blurb I did for this one:

Disease-Proof is not only about knowing what to do to stay healthy; it’s also about developing the skills to apply that knowledge.  Katz and Colino make the skills look easy.   I especially appreciate how they encourage readers to take responsibility for the health of others as well as themselves, and work toward creating a healthy society for all.

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