Can a Restaurant Operating at 25% Capacity Ever be Profitable?

Ricardo Molina stocked up on three weeks’ worth of fajita fillings before he reopened Molina’s Cantina last weekend in Houston. It’s an insurance policy against market fluctuations due to the novel coronavirus pandemic.
“If the food supply is going to get tight, those prices will start to creep up, and then we won’t be able to offer the same menu,” explains Molina. His grandfather opened Molina’s Cantina in 1941, and it’s served generations of Houstonians.
Molina is one of countless restaurateurs navigating a rapidly evolving landscape. Last week, Texas governor Greg Abbott rescinded shelter-in-place restrictions across the state. As of May 1, Texas restaurants can serve guests seated at least six feet from one another in dining rooms filled to 25% capacity (50% in certain rural counties).

Read on...