Elarroyo
Winstanley's restaurant El Arroyo in Austin | elarroyo.com

Austin restaurant owner posts sign to express frustration with government

Government

ORGANIZATIONS IN THIS STORY

Ellis Winstanley has been in the restaurant and bar business for more than two decades.

He has seen just about everything you can experience as a bartender, doorman, manager and owner. But Winstanley, 39, told Lone Star Standard he has never seen anything like what is happening now.

Winstanley owns three restaurants in and around Austin: El Arroyo, Abel’s on the Lake and Cain & Abel’s. El Arroyo has been open only for to-go orders, while Abel’s on the Lake and Cain & Abel’s have been closed for several weeks. They will reopen this weekend.


Austin Winstanley | Submitted

“We closed two of the restaurants early on and now we’re trying to get them reopened,” Winstanley said. “There’s not enough to-go business to go around for everyone. We’d love to reopen all three of them. We’re not sure when we will be able to return.”

That frustration caused him to make a comment on the El Arroyo signboard: “Dear Congress: This is not working. Sincerely, Every Restaurant in America.”

“We thought of it yesterday,” he said. “It’s a challenging situation.”

Winstanley said he appreciates Congress and President Trump's signing into law the $2 trillion Coronavirus Aid, Relief and Economic Security Act (CARES Act). The CARES Act provided $350 billion in forgivable loans through the Small Business Administration, with an additional $320 billion put into the Paycheck Protection Program (PPP).

Small businesses may apply for up to 2.5 times their monthly payroll with a $10 million cap.

“They are trying to help people,” Winstanley said. “The way they have it set up is not workable for people.”

He said he has talked with people who own and manage construction, embroidery and painting businesses. If they reopen, their sales might not be worth the expense — and they might be obligated to pay back relief money by December.

“Nobody’s got much confidence,” said Winstanley.

He had to lay off staff at the two closed restaurants but has since offered most of them jobs at El Arroyo. He is paying higher wages than before because tips have mostly vanished.

“This is Austin. They weren’t going to be able to survive on that,” Winstanley said. “We really try to take care of our employees.”

He said some business owners told him they are unable to hire enough workers.

“Lot of people making more money on unemployment,” he said.

While restaurant owners are interested in providing sit-down service, many customers are afraid to go out. Winstanley said in Georgia, the state has allowed businesses to reopen, but some restaurants have declined to do so.

“They don’t want to reopen to lose money,” he said. “And a significant portion of PPP money is not dischargeable.”

He started in the bar and restaurant business at 19, serving as a doorman and bartender. He and his twin brother Austin bought their first restaurant when they were 20.

Cain & Abel’s is a bar and grill. Abel’s at the Lake serves American food and has a large deck for events, such as weddings, corporate outings and private parties.

Offering a Tex-Mex menu,.El Arroyo has remained busy, but its costs are up as well with the additional employees, higher wages and increased packaging costs with the to-go orders.

Winstanley would love to return to business as he has known it for most of his life. But when will that happen?

“Nobody knows,” he said.

Winstanley was encouraged by Gov. Greg Abbott's announcement on Monday that restaurants, stores, malls and movie theaters may open Friday at 25 percent capacity. Other businesses will have to wait until mid-May. All three of Winstanley’s restaurants will reopen.

“I think anything that helps us reopen is good,” Winstanley said. “Hard to make progress with 25 percent revenue.”

ORGANIZATIONS IN THIS STORY

More News