Jim Cramer, restaurateur and host of the famed finance program Mad Money, said most restaurants would not survive because the Tennessee State’s strategy of reopening restaurants is not feasible for most restaurants.
Jim Cramer, the restaurateur, former hedge fund manager and host of Mad Money, the famous US finance program, said during the program that the strategies implemented by the state of Tennessee would prevent restaurants from making a profit and that many restaurants would not survive as a result. Tennessee Governor Bill Lee’s plan in April includes severe restrictions on the opening of restaurants. Some limitations were introduced, such as reducing the capacity of restaurants to 50%, placing dining tables six feet apart from one another, requiring employees and customers to pass through a coronavirus screening and measuring their fevers. In addition to these restrictions, the use of masks and gloves are mandatory, and bar seats and self-serve buffets are banned. Cramer said the lost revenue gap could be made up through carryout and delivery services, adding that these rules are not feasible for restaurants that cannot coordinate logistics. “13 million people work in the restaurant industry, or at least they did a few months ago. I have no idea how many will be left if we have to operate this way for an extended period of time, but I know it won’t be many” Cramer said in Mad Money. He said the decisions were great in terms of health and safety but that 30% of bars and restaurants would close because they were not viable for most restaurants. Cramer, “Once we get a vaccine, the big chains can take over the world,” explained after he said that companies like Darden, Olive Garden and Starbucks could adapt to these rules.