For Restaurants, 2021 Budgeting Will Require a Three-Tiered Approach 

The high levels of uncertainty surrounding the future of the COVID-19 pandemic highlight the importance for restaurants to rethink their approach to budgeting for 2021.  Historically, food service businesses formulated a single year-long budget tailored to labor needs, food costs, average daily revenues, capacity levels and customer trends – all of which were in relation to historical results and relatively stable. Budgets were thoroughly reviewed, signed off on and then periodically updated every 30, 60, or 90 days. It was an approach that proved to be effective in the past, but it’s simply not suitable for the instability of a global health crisis. 

An approved COVID-19 vaccine ready for mass distribution has not surpassed Phase 3 trials as of October 2020. In reality, while there does remain some question of when the vaccine will be approved –  when that day does come, it will a be matter of how long it takes to have it ready for mass distribution and the percent of the…