Allow Takeaways at alert level 4 - Hospitality businesses, Is it Safe?

Summary

• With Auckland returning to Alert Level 3, Takeaways allowed at Alert Level 3, but businesses have to follow strict health and safety guidelines.
• Fast food companies are scaling up their hygiene methods and delivery services with new alert levels restrictions imposed.
• The Restaurant Association is urging the Government to allow services at Alert Level 4.
• The Industry associations are disappointed post New Zealand Government announced a relief package for the businesses as no specific support or funding from the Government's COVID-19 Response and Recovery relief fund had been released for the hospitality industry.

Prime Minister Jacinda Ardern earlier announced Auckland returning to Alert Level 3 with rest of the country at Alert Level 2.

The statement came after four cases of community transmission, with a total of 14 new cases in Auckland had been confirmed. The Auckland Super City that is from Wellsford in the north to Pukekohe in the south area covered by Alert Level 3.

Cafes, bars, restaurants and other food-related services will be closed, but contactless delivery and pick-up are allowed. Hospitality business falling under Level 2 criteria will follow three 'S's – dinners will be seated, separated and served by a single server. The guest limit is 100 as of now.

Also read: Hospitality Businesses Faces Liquidity Issues due to COVID-19

Hospitality Industry concerned with high alert level announced

However, according to Hospitality New Zealand Chief Executive, Julie White, the Government needs to pay more focus and provide more measures to the hospitality sectors as Level 3 alert is a damper for restaurant business as many operators will close down, hurting several small businesses.

The Restaurant Association have put forward the guidelines for businesses to follow. To keep the workers' safe, companies must take health measures - the physical distance between workers is must as well as maintaining the record of workers working together. Interaction between groups of workers is restricted. Businesses have to disinfect surfaces and maintain high hygiene standards continually.

As contactless delivery and pick-up, including drive-through of pre-prepared food and beverages is allowed, but customers are not allowed to enter premises.

The Restaurant Association have appealed for the restaurant industry to remain open for contactless delivery at all alert levels.

Post the Government announcing extension on economic support, Industry association Hospitality New Zealand was disappointed as no specific support, or further funding had been released from Government's NZ$14 billion COVID-19 Response and Recovery relief fund.

Earlier in the month of August, Statistics NZ revealed that the sector has been seeing buoyant growth as retail card spending in the hospitality sector hit NZ$62 million, a jump of 5.9% compared to at the same time last year. This is the strongest level for a July month since data was recorded.

Also read: Re-surging demand in NZ after Alert Level 3

What Quick restaurant Service providers are saying?

According to Media Reports, Simon Kenny, McDonald's New Zealand spokesman, states that at alert level 3, outlets in Auckland outlets would go back to drive-through and delivery and will follow any new guidance from the Government. Branches of McDonald's located at malls, Auckland International Airport, and outlets without a drive-through would get closed at noon in Auckland.

Kenny further said that outside the Auckland region, the restaurants would operate as per alert level 2 guidelines that will allow limited numbers of customers inside the restaurant and will usage of government contact tracing app and closing play lands at place.

Similarly, Burger King stated that the outlets will continue to provide contactless pick-up and would deliver food via Delivereasy and Uber Eats. They will also serve customers through drive-through in Auckland. Burger King is following physical distancing with dine-in open in the rest of the country with raised safety measures to keep team and customers safe.

A Domino's spokeswoman notified that they are improving hygiene and social distancing steps within staff with the pizza chain again implementing zero-contact delivery and takeaway across the country.

Also read: Technology meets Hospitality Businesses – HospoConnect under the spotlight.

Impact and Safety at Alert Level 4

In March during Alert Level 4, a blanket ban was imposed on hospitality operations. 98% of Restaurant Association member businesses could not generate revenue, impacting the overall industry significantly. The association is now encouraging the Government to continue to allow the contactless delivery operations even during level 4.

Restaurant Association CEO Marisa Bidois said the industry saw unmitigated success with contactless food delivery as the businesses followed the Alert Level 3 operation guidelines. The association is also trying to persuade the Government to deliver additional fiscal relief package they are asking since May. Among the Restaurant Association members, more than 50 businesses had to close the shop, which is around 1000 job losses.

Association members conducted an urgent survey on 13th August which indicated that more than 50% members support the Government if they make this change for the hospitality industry at Alert Level 4. 14% members said they need more information before making a final decision.

It released a statement saying delivery option should be available for hospitality businesses as well as online retail and supermarkets as the hospitality industry has proven to operate safely, providing contactless services at level 3. The association see no reason to shut the services at level 4.

But the question remains if it is safe to keep the contactless delivery option open at Alert Level 4.

Also read: Restaurant Brands Sales Impacted By COVID-19 During Q2