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Indianapolis restaurants got a much-needed boost during the Memorial Day weekend, as in-person dining services resumed for the first time in more than two months—at least on an outdoor basis.
A new report from dining reservation site OpenTable says seated-diner numbers at local restaurants on Memorial Day were only 22% of what they were on Memorial Day 2019. But that’s a marked improvement from zero sit-down diners the past two months, with the city limiting restaurant service to carryout, drive-up and delivery since mid-March in response to the pandemic.
When outdoor in-person service was allowed May 22, OpenTable found local restaurants attracted about 8% of the diners they did last year. That figure held through Saturday before ticking up to 11% on Sunday.
Indianapolis’ restaurant reopening timeline lags the rest of the state by more than three weeks—eateries in all but three counties were permitted to resume limited-capacity indoor and outdoor service starting May 11.
Overall, the state saw about 46% of the diners it did on Memorial Day 2019—its best showing since in-person dining resumed. The United States is operating at about 13% of normal dining levels, according to the OpenTable data.
The percentages are based on a sample of about 20,000 restaurants nationwide that provide OpenTable with information about their customer counts.
Cities comparable to Indianapolis—including those under similar restrictions—saw similar diner figures on Monday. Columbus, Ohio, was at about 20% of its 2019 levels. Austin, Texas, was around 22%, and Louisville came in around 24%.
Eddie Sahm, who owns several Indianapolis restaurants, including Big Lug Canteen, said revenue for his family of restaurants was down about 70% year-over-year for the weekend (the eateries were closed on Memorial Day).
“I think on our end, we weren’t full, but it was the most we could do,” he said. “In order for us to do more, we would have had to sacrifice some of our integrity, and that’s not really worth it.”
The restaurant group includes several eateries with large dining rooms that typically cater to large events. But Sahm said he’s not sure when he’ll be able to reopen those dining rooms.
“It really is restaurant to restaurant on our end,” he said. “We’re still not 100% comfortable with indoor dining. I’m glad to see that people are talking more about the subject. … I think the conversation has been good. But for us to say that we wanted a lift—I want a lift, but I want it to be under the right circumstances.”
Experts and local restaurateurs credited mostly decent weekend weather as “extremely beneficial” for outdoor service. But they also said revenue is still far below what most consider sustainable for the majority of establishments.
“Just having some good weather and having the opportunity to have some guests even sit outside is good,” said Patrick Tamm, president of the Indiana Restaurant & Lodging Association, a lobbying group. “But we need dining rooms to open June 1, even at 50%, just to give us a fighting chance.”
In a statement to IBJ, Deputy Mayor Taylor Schaffer said: “As [Mayor Joe Hogsett] and [Marion County Health Department Director Dr. Virginia Caine] have made clear multiple times over the last several weeks, June 1 is the target date for reopening restaurants with indoor seating.”
Hogsett is expected to announce plans Wednesday morning.
Tamm said he understands that health considerations are a critical part of the conversation, but he’s certain there will be “business failures” if the city waits too long to allow restaurants to reopen.
“People are hanging on for dear life right now,” he said. “And the financial stress will just be too great for many … even when bolstered by [government] dollars. Without customers, it’s pretty hard to sustain a business.”
Tamm said many local restaurateurs that have received money through the federal Paycheck Protection Program—which provides a forgivable loan for up to eight weeks of payroll—are nearing the end of that cycle.
Chris Evans, owner of Sangiovese Ristorante, said his federal loan will run out June 15, and he’s hoping restaurants will be permitted to reopen fully by then.
“Operating at 50% is certainly not ideal, but it does allow us to reenter the market and get reacquainted with people,” he said.
Evans, whose restaurant has locations in Indianapolis and Fishers, said he is running at about 70% of the revenue he normally brings in. This includes traditional dine-in service in Fishers—at about 50% capacity—and carryout in Indianapolis.
He said he chose not to pursue temporary outdoor dining in Indianapolis because of concerns over the weather unpredictability.
“It would have been great to have been open already,” Evans said. “I do not understand why [Indianapolis isn’t yet at 50%] while the rest of the state has opened up. We’ve opened up malls, there’s the Handlebar beer peddlers. It’s truly frustrating.”
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Since we’re “all in this together” why hasn’t Pothole furloughed any of his staff like most companies in the real world? Taylor and Virginia would be an excellent place to start.
Some staff provide vital support and knowledge, much unlike negative comments which offer no direction or assistance during a major pandemic not seen in 100 years. Name calling is unacceptable behavior as are mindless suggestions. Be constructive for the benefit of Indianapolis citizens and business. Most companies in the real work have sought measures to retain staff in safe environments. Recognizing that some public facing business have indeed been hard hit is clears, but leadership means implementing hard choices for the greater overall benefit rather than short-term appeasement of the uninformed.