Sysco’s Exclusive€¦ · Reopening your restaurant may be a phased in approach, that requires significant adjustments to your dining room layout, hosting and guest welcome process,

Sysco’s Exclusive

Info Session

NAVIGATING COVID 19CUSTOMER WEBINAR

3

Arnie Mascali | PresidentProcor Solutions + Consulting

Howard Berkower | Partner McCarter & English, LLP

Sheri Pastor | ChairInsurance Recovery, Litigation

& Counseling Practice

Pamela Moore |Partner, Labor & Employment Law

McCarter & English, LLP

Agenda

• Employment concerns in the post pandemic workplace

• Reimagining Your Restaurant

• Potentially Responsive Policies

• PPE - Should You Keep The Money

Foodie.Sysco.com/snapback

https://foodie.sysco.com/snapback/

EMPLOYMENT CONCERNS IN THE POST PANDEMIC

WORKPLACEPamela Moore |

Partner, Labor & Employment LawMcCarter & English, LLP



DISCRIMINATION

• Decisions to rehire/reinstate must be based on legitimate business reasons unrelated to protected characteristics• Cannot for example favor younger employees over older

employees out of fear that older employees may be more susceptible to the virus

• Cannot discriminate against people because they are in a higher risk group, e.g., minorities or those with disabilities





DISCRIMINATION

• Accommodations may be required• Employees with underlying health issues, e.g., diabetes, heart

conditions or pulmonary issues may seek accommodations

• Reasonableness of Accommodation• Bar may have been reset on such things as remote work





DISCRIMINATION• Limitations on Testing

• Taking temperatures or obtaining other health information• Requiring testing for Covid 19 and/or anti-body testing• Requiring employees to have seasonal flu vaccine• Requiring employees to have Covid 19 vaccine if and when it

becomes available

• Restricting employees from work based on above





WAGE AND HOUR ISSUES

• Paying employees for time spent preliminary to work shift

• Paying employees if they report and you send them home

• Paying employees if they are precluded from working by your policy• Potential paid sick leave, disability and unemployment concerns





FAMILY AND MEDICAL LEAVE ACT

• Covid 19 related absences may be covered “serious health conditions” even if the illness is temporary.

• Payments provided to employees for perfect attendance, hazard pay, etc. may run afoul of FMLA requirements

• Must check policies to be sure they permit employees to substitute PTO in appropriate situations, e.g., when state or federal law mandate it





WORKERS COMPENSATION• Is a Covid 19 infection covered by workers compensation

insurance?• Most states typically cover infectious diseases if they are

contracted through exposure at work• Some states are creating presumption for coverage

• Benefits to providing coverage• Exclusivity provision (maybe)• No tort liability (in most cases)

• Workers compensation is state specific





TORT LIABILITY

• Likely limited by workers compensation

• Based on a duty or standard of care not being satisfied and causation being proven

• Be careful about compensation policies • Smithfield Foods

• Liability may be limited by federal or state law





OSHA• OSHA

• General Duty Clause—Employer must provide employment and a place of employment which are free from recognized hazards that are causing or are likely to cause death or serious physical harm to employees. (Sec. 5(a)(1) of the OSH Act)

• Additional Specific Standards

• Personal Protective Equipment (1910.132)

• Eye and Face Protection (1910.133)

• Respiratory Protection (1910.134)

• Sanitation (1910.141)

• Accident Prevention, Signs and Tags (1910.1020)

• Recording and Reporting

• OSHA GuidancePamela Moore |




OSHA

• INTERIM ENFORCEMENT RESPONSE PLAN FOR COVID-19• OSHA paying “heightened attention” to risks posed by COVID-10• Enforcement of obligations under General Duty Clause

• Assumptions: Transmission occurs during close contact (within 6 feet) primarily from respiratory droplets when the person sneezes or coughs.

• “Prudent infection control practices” must be exercised





OSHA• OSHA should investigate complaints, referrals and employer-related fatalities and

hospitalizations to identify hazards and ensure that employers take “prompt actions to mitigate hazards.”

• “Current CDC guidance should be consulted in assessing potential workplace hazards and in evaluating the adequacy of the employer’s protective measures for workers.”

• Priority given the high risk facilities. Medium to low risk will likely not be subjected to on-site inspection

• Employers must report fatalities within 8 hours of the death and within 30 days from of the work related incident; and hospitalizations within 24 hours





OSHA, THE CDC AND THE FDA• Agencies are working together to structure guidance for limiting

transmission of Covid 19

• Must be familiar with all

• State and local governments may also have restrictions and guidancee.g., https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/Safe-Workplace-Rules-for-Essential-Employers

• Violation of restrictions or failing to promote safety of employees may result in penalties and lawsuits





OSHA• Preventing Employee Exposure to Coronavirus (OSHA

Publication 3989) www.osha.gov/Publications/OSHA3989.pdf

• Guidance on Preparing for COVID-19 (OSHA Publication 3990) www.osha.gov/Publications/OSHA 3990.pdf

• CDC Guidance www.cdc.gov/coronavirus/2019-ncov/community/organizations/businesses-employers.html





FDA GUIDELINES/FOOD SAFETY

• https://www.fda.gov/food/food-safety-during-emergencies/food-safety-and-coronavirus-disease-2019-covid-19

• Best Practices for Retail Food Stores, Restaurants, and Food Pick-Up/Delivery Services During the COVID-19 Pandemic.





Planning for Reopening

• Purchase sufficient PPE (masks, gloves)

• Plan for increased cleaning and sanitizing requirements

• Consider high touch areas• Menus• Check processing and credit card machines

• Consider high contact areas • Hostess or receptionist positions

• Consider high risk areas (where employees cannot maintain distance of 6 feet from each other)

• Plan for training, monitoring and enforcement

• Social Distancing will likely still be the normPamela Moore |




Dawn Fitzgerald | Sysco Corporation

Stay InformedReimagination of your restaurant requires you to know your local, state and federal laws. Things change daily, arming yourself with knowledge before embarking on any big decisions is critical.

• Center for Disease Control

• FDA

• OSHA

• Local State Restaurant Association Sites

• Foodie.Sysco.com



Health, Safety, & SanitationWith the onset of COVID – it has necessitated us to elevate our traditional sanitation

standards. With guidance on new regulatory requirements, some permanent and others

temporary, it's mandating that we change our processes to ensure the safety and health

of our community.

For both staff and guests:• Wellness checks:

• Consider implementing a zero-tolerance policy prohibiting staff from working when sick• Temperature checks for staff

• Social distancing

• C-19 training for staff

• Serv Safe training

• Possible job description changes

• Checklist changes

• Protective wear for all staff (mask/gloves)

• Station modifications

• Increased sanitation procedures

• New equipment, technology, and supplies may be required with the changes

• Add signage for staff and customers



Your Commitment to Your Guests

The restaurant industry has an outstanding track record of protecting our employees and guests. To ensure everyone’s safety as we welcome you back into our dining rooms, we ask that we make the following promises to each other:

OUR COMMITMENT TO YOU

• We will continue to be a leader in safe sanitation practices with all team members certified in safe food handling and a certified manager on every shift.

• All employees will pass a health check or complete a health survey prior to each shift.• All indoor and outdoor seating options will comply with the appropriate social distancing guidelines.• Hand sanitizer or hand washing stations will be available to all customers and employees.• We will clean and sanitize common areas and surfaces regularly.• We will clean and sanitize each dining area after every use.• Place settings, utensils, menus, and condiments will either be single-use or will be cleaned and

sanitized after every use.

• We post at our entrances so everyone understands the steps we must all take to keep our communities safe.

• YOUR PROMISE/COMMITMENT TO US

• If you have been exposed to COVID-19 recently or have symptoms of COVID-19 (including a fever, cough, or shortness of breath), please help us keep everyone safe by using our contactless delivery options.

• If you have underlying health conditions or are otherwise concerned about contracting COVID-19, please feel free to use our contactless delivery options.

• You agree to follow the social distancing and sanitary guidelines that have been put in place to protect you and our other customers and employees.

• If you have any questions about the our commitment/promise to you, please ask for a manager who will be happy to assist you.



Reimagining the Dining Room

Front of House & Service

❑ Remove/rearrange tables and chairs to allow for social

distancing according to your local guidelines (6ft

distance)

❑ Create outdoor seating, if possible

❑ Consider Plexi-glass between adjoining areas (booths)

❑ Consider implementing reservations to control capacity

and limit crowding

❑ Reserve time between table turns for sanitation

❑ Consider seating limitations – 1.5 hour

❑ Create visible sanitizer stations for your wait staff

❑ Consider taking condiments off the tables and bring

portioned condiments with order

❑ Consider using plate covers when serving

❑ Consider using wrapped silverware and straws

❑ Promote safety and sanitation practices with

signage and social media posts

Social Distancing

❑ Service Staff - Determine processes on how you will keep them 6ft. apart

Restrooms:

❑ May require an attendant to monitor one guest in at a time as well as, sanitizing after each use

❑ Consider handsfree towels/air dryers, soap etc.

❑ Hands free door opener, or have attendant open

❑ Post signage on hand washing procedures and your sanitation practices

Other

❑ Consider “frictionless/contactless” means for excepting payment, such as Venmo, PayPal

❑ Waitlist management

❑ Utilize signage throughout with your sanitation practices (Posters, table tents, etc.)

❑ If you have a counter service establishment, utilize

social distancing markers throughout

❑ Repurpose Salad Bars or Self-Service stations

❑ Consider counter services versus waitstaff where applicable

❑ Setup sanitations stations throughout the restaurant

❑ Eliminating self-service condiment, soda stations etc.

Reopening your restaurant may be a phased in approach, that requires significant adjustments to

your dining room layout, hosting and guest welcome process, waitlist handling and service

procedures in order to provide your customers with a level of trust and a sense of safety.

Restaurants will need to convey they are going above and beyond to provide a safe andsanitary environment without the fear of being infected.



Contactless & Disposable Menus will be on the rise



Reimagining Your Menu

❑Consider streamlining your menu and reducing offerings to those items that are profitable, popular, easy to prepare and portable

❑ Determine those items you can utilize across multiple dishes

❑ This will also help with your inventory and lower your overall food cost

❑Review current item costs and make pricing adjustments based on current market conditions

❑Consider changing format to single sheet, disposable paper menu or viewing online

for best safety and sanitation practices

❑Continue to offer carry-out, delivery, and other enhanced services, such as meal kits, family packs, value meals, take & bake options and specialty items

❑ Introduce or enhance online ordering capabilities for the dine-in guest at the table

❑ Single use menus, synthetic, or QR Code to pull up menu on guest's phone/tablet for

contactless ordering

❑Create or continue with your on-site pop up shops or virtual "marketplace" to sell your signature items and other essentials

As you reopen your business and dine-in services, you will need to most likely

reimagine and re-engineer your menu to meet the new expectations of your

customers. Single-use, easily sanitized, digital display or contactless menus are

recommended (or in some cases required) and serve as a clear indication of your

commitment to safety and sanitation.



New Expectations



Reimagining to the New Guest Experience

Lasting impressions/experiences is objective for restaurants after all this is what makes your

guests return. The guest experience is influenced by your concept, execution, quality, the

overall experience, and more. Whether it's dine-in, takeout, curbside service or delivery, the

experience for your guest will vary. Given the different experiences, it is critical to

incorporate safe, sanitary practices to ensure the experience you deliver is memorable and

brings your customers back.

❑Sanitation, Sanitation, Sanitation❑Personal sanitizer with your logo on it or to go cleansing wipes

❑ Let your customers see you sanitizing your hands

❑ Touchless hand sanitizers stations❑Chairs/tables sanitized after each seating

❑ Things to open the door without hands

❑Auto door openers

❑ Employ a cleanliness attendant for the dining room

❑Plate Covers

❑Restrooms:

❑May require an attendant to monitor one guest in at a time as well as, sanitizing after each use

❑Consider handsfree towels/air dryers, soap etc.

❑Hands free door opener, or have attendant open

❑Post signage on hand washing procedures and your sanitation practices

❑Paperless transactions❑Menus: Digital leveraging QR Codes, Technology or Disposable



Marketing to the

New Norm

Staying connected with your guests has never been more critical than it is now. Traditional ways of communicating with your guest that dine in have changed overnight and are no longer effective.

• Inform your customers of the safety standards and sanitation protocol you have implemented to reassure them

that their safety is your number one priority

• Communicate frequently and authentically with your customers via your website and social media. Create

EXCITEMENT!

• Utilize banners and posters for interior and exterior signage to clearly convey your message

Social Media

• Post often (We Missed You, Welcome Back, Thank You for Supporting Us, Safety Practices, Live Videos)

• Be responsive

Website• Online orders• Menu• Takeout, delivery, and curbside offerings



Marketing to the

New Norm

Pop-Up Shop – speak to it, advertise, include in online ordering, etc.

Provide special incentives:

• Loyalty cards for every guest

• Discounts to those in-dining guests for a food purchase of $x amount

• Offer daily meal deals – guests will be looking for value

• Provide incentive for curbside pickup saving your guest the fees plus saving you the 3rd party fee

• Offer gift cards if you are not currently

• Email your customers often



Other Potential Considerations

• Evaluate your budget line items, determine what is essential and where you may be able to trim costs. In addition, you will need to look at your profit margins, they will need to be higher, due to the volume of business, and costs of goods

• Subscription/lease payments maybe offering waived fees

• Recalculating monthly worker’s comp payments due to lower payroll

• Negotiate your fees

• Reduced frequency of trash pickup

• Reduce 3rd party uses (music, linen, mat rentals, uniforms, etc.)

• Consider changing your hours to save on costs

• Focus on cross utilization of inventory in order to minimize excess stock

and maximize usage of versatile items

• If economics fit, consider how you can do your own delivery

Know Fixed & Variable Expenses

Understand your Food, Beverage &

Labor Costs



Sysco is here to help•Marketing Associates and local OpCo resources

•Marketing Services Concierge

•To enlist our help: call 1-800-380-6348 or

email [email protected]

• Stay Connected With Us

• Foodie.Sysco.com: Resources available: Serv

Safe, Ecolab, Snapback Toolkit, etc.

• Instagram: @syscofoodie

• Facebook: @SyscoFoodie

• Sysco Studio – Self-Service Restaurant Marketing

Tool

• iCare Partners


mailto:[email protected]


Sheri PastorMcCarter & English, LLP

[email protected]

973-639-2070

Chair, Insurance Recovery, Litigation & Counseling Practice



Potentially Responsive Policies

• Employment Liability

• General Liability

• Workers Compensation

• Directors & Officers Liability

34

©2020, McCarter & English, LLPwww.mccarter.com

Sherilyn Pastor


[email protected]

973-639-2070

Chair, Insurance Recovery,

Litigation & Counseling Practice



Key Considerations

• Claim vs. Circumstance

• Bodily Injury vs. Economic loss

• Occurrence

• Personal and advertising injury• Wrongful eviction

• Expected Or Intended

• Exclusions• Pollution

• Fungi or Bacteria

• Communicable Disease

• Insured vs. Additional Insured status

34


Sherilyn Pastor


[email protected]

973-639-2070





Tips

• Carefully review policies

• Give timely notice of claims and/or circumstances

• Document (e.g., confirm conversations in writing)

• Demand coverage positions and explanations

• Challenge denials

• Consider time limits (e.g., service of suit provisions)

• Consider Grace Periods and extensions of them for premium payments


Sherilyn Pastor


[email protected]

973-639-2070



Howard [email protected]

212-609-6824

Partner, Corporate Practice



Should You Keep The MoneyThe Paycheck Protection Program (PPP) is a massive program that was very quickly rolled out with minimal supervision and review of the loan applications, as a primary objective of the program was to inject a large amount of money into the economy quickly.

Scope: SBA Ordinary Course PPP

• Loans Made $25 billion 14x $350 billion

• Time Period 52 weeks 26x 2 weeks

• Chaos

This presentation is for informational purposes only and is not offered as legal advice regarding any particular matter. No viewer should act on the basis of this presentation without seeking appropriate

professional advice. The views expressed in this program are not those of any involved presenter, company, firm or entity, or any clients.

Howard Berkower


[email protected]

212-609-6824




Should You Keep The Money (cont’d)• Section 1102 of the CARES Act provides that “In evaluating the eligibility of a borrower for a PPP loan, a

lender shall consider whether the borrower - (a) was in operation on February 15, 2020; and (b) had employees for whom the borrower paid salaries and payroll taxes, or paid independent contractors, as reported on a Form 1099-MISC.”

• In implementing the PPP, the SBA has issued an Interim Final Rule setting forth PPP loan responsibilities and procedures for borrowers and lenders. The SBA has been clear that to provide relief as quickly as possible, it will limit lender due diligence requirements.

• For PPP loan purposes, lenders can rely on borrowers’ certifications to determine program eligibility and borrowers’ documentation in determining loan amount and loan forgiveness eligibility.

Howard Berkower


[email protected]

212-609-6824




Should You Keep The Money (cont’d)

• Section 1102 of the CARES Act requires an applicant for a PPP loan to “make a good faith certification--I. That the uncertainty of current economic conditions makes necessary the loan request to support the

ongoing operations of the [applicant] (“Necessity Certification”); and

II. Acknowledging the funds will be used to retain workers and maintain payroll or make mortgage payments, lease payments, and utility payments.”

• Media reports revealed that massive amounts of PPP loans went to publicly traded corporations, such as AutoNation over $75 million, Shake Shack $10 million and Ruth's Chris Steak House $20 million and other large privately-held companies, such as the Los Angeles Lakers received $4.6 million.

Howard Berkower


[email protected]

212-609-6824





• On April 23, 2020, the SBA issued guidance on the PPP by supplementing its Frequently Asked Questions (“FAQ”). The FAQ addressed whether businesses owned by large companies with adequate sources of liquidity to support the business’s ongoing operations qualify for a PPP loan.

• The FAQ instructs that in connection with the submitting a PPP loan application, an applicant should review carefully the Necessity Certification that “current economic uncertainty makes this loan request necessary to support the ongoing operations of the applicant.”

• Furthermore, an applicant must make this certification in good faith, taking into account its current business activity and its ability to assess “other sources of liquidity sufficient to support its ongoing operations in a manner that is not significantly detrimental to the business.”

Howard Berkower


[email protected]

212-609-6824





• The FAQ further states that public companies with the ability to access public markets will be challenged in making a Necessity Certification in good faith.

• Finally the FAQ establishes a “no fault” return policy for any borrower that applied for a PPP loan prior April 23 and repays the loan in full by May 7, 2020.

• The Treasury and the SBA issued a press release on April 28 announcing that the SBA will review all loans in excess of $2 million, in addition to other loans as appropriate, following the lender’s submission of the borrower’s loan forgiveness application.

Howard Berkower


[email protected]

212-609-6824




Should You Keep The Money (cont’d)Observations:

I. Facts and circumstances are extremely important.

II. The FAQ presents no quantitative framework to evaluate whether another source of liquidity would be significantly detrimental to the business.”

III. There are many public-traded companies that have limited sources of liquidity to support its ongoing operations.

IV. The cases reported in the media were particularly egregious:▪ AutoNation had $1.4 billion borrowing capacity under its $1.8 billion bank facility.

▪ ShakeShack earlier this month successfully completed a $130 million underwritten public offering of additional shares of its common stock and also had significant borrowing capacity under its bank revolver.

Howard Berkower


[email protected]

212-609-6824




Should You Keep The Money (cont’d)Actions:

I. Review and Document the Process by which an applicant determined to apply for a PPP loan.

II. Consider general financial condition of the applicant and trends of the underlying business.

III. Evaluate the extent to which the current economic conditions impacts forecasting visibility.

IV. Detail analysis of actual or projected revenue, expenses and cash flow from February through September and compare to budget to assess effect of pandemic on business operations and performance.

V. Detail analysis of other liquidity needs of the business such as capital expenditures and whether those liquidity needs can be satisfied.

VI. Consider the effect of the pandemic on the work force of the applicant.

VII. Consider availability, terms and conditions of sources of liquidity other than a PPP loan.

VIII. Public relations and tolerance for reputational risk.

Howard Berkower


[email protected]

212-609-6824




Sysco Cares Act Support Center

To support you as our valued customer during this

unprecedented time, Sysco has established a

CARES Act Support Center.

This Support Center will help you with questions about

the CARES Act and the application process to ensure a

fast and accurate submission. We have a team of experts

standing by.

Call: 1-334-45-i-Care +1 334-454-2273



Concierge Service

Our Concierge Service available to any customer

• Crisis Menus, Pop Up Shop/Marketplace, Social Media, Thank you cards and other restaurant marketing materials to ensure continuity

• Provide guidance on what you could be doing to promote your business

• Provide guidance and facilitate our iCare Partnerships available to our customers

• Websites to facilitate Online ordering

• Delivery

• Gift cards, etc.

For Marketing Services Help:

• Call: -1-800-380-6348 or

• Email: [email protected]



Documents

Sysco’s Exclusive€¦ · Reopening your restaurant may be a phased in approach, that requires significant adjustments to your dining room layout, hosting and guest welcome process,