Ogle County News

Local restaurateurs deal with COVID-19 shutdown

‘It’s six bars and six different sets of liabilities.’

When Illinois Governor J.B. Prtizker initially announced a two-week shutdown of restaurants and bars on March 16 to prevent the spread of COVID-19, Matt Pendergrass didn’t understand the severity.

He figured he and his wife, Jamie, would close and deep clean their six area bars and restaurants and open right back up on March 31.

Now, May 1 is the earliest the inside of their establishments can be opened.

The Pendergrasses announced on April 1 that The Cave in Byron, The Hunt Club in Oregon and Aero Ale House in Loves Park are now open for curbside pickup. They also own Aero Ale House in Byron, Rural on Tap in Rockford and Idle Hour in Mt. Morris. Those three remain closed completely.

“We reopened for two reasons,” Matt Pendergrass said. “The first was the employees. They weren’t working and couldn’t find work. The second was revenue. I have to at least cover these utilities and pre-existing liabilities.”

Curbside pickup is not a specialty at any of Pendergrass’s six restaurants. Matt said they’ve had to add a second cook and utilize two employees to run food out to cars. About 90 percent of income at his businesses come from sales made inside the bars and restaurants.

“It’s a huge impact,” Matt said. “It’s six bars and six different sets of liabilities. You’re paying for bills as if you’re fully open. At some point we’ll open Idle Hour in Mt. Morris. As for when we can fully do everything we used to, I think it’ll be a July open.”

Matt has lost his partner for the moment. Jamie has been staying home with their 10 and 8-year-old children to help with schoolwork and to watch them.

The closure has forced the couple to try to be innovative through social media and other ways. They recently went into business with Oregon delivery service Chowdown OTown to provide delivery from The Cave and The Hunt Club.

Matt has spent recent weeks filling out every loan and grant available to small businesses through the recently-passed federal C.A.R.E.S. Act.

“We have no choice but to apply,” Matt said. “The C.A.R.E.S. Act is like being on the Titanic when it’s sinking. Someone throws you a raft. It’s good for a certain amount of time, but it isn’t going to last until you’re safe. It’s not enough support. We have pre-existing liabilities. There’s going to have to be more.”

The Pendergrasses are no strangers to adversity in the restaurant business. In 2018, The Cave burned down. It was tough, but they had fire and business interruption insurance. Matt’s main frustration with the current situation is the shutdown not being covered under business interruption insurance.

He has called his congressman to ask about it. Now, he and Jamie will likely be forced to take out loans through no fault of their own.

“I pay thousands and thousands in insurance every year,” Matt said. “How is an event like this not covered? I think you’ll see a lot of that come into the media. I don’t know who to blame. It would be a game changer if we had it. It’s excluded.”

Matt is unsure if he’ll be able to open back up all six of his restaurants completely when the shutdown is eventually lifted. Some of them, like Aero Ale House in Byron, have expensive overhead costs. More government intervention would help, he said.

Most of the food they had on hand had to be thrown away. At the pre Ale Houses, all the food is made from scratch. Staffing will also be an issue, as he anticipates many of them will take other jobs at places that are hiring like Walmart.

“To fire up six establishments when they’ve been closed is big money,” Matt said. “You have to pay past due bills and get all new products. I’ll have to do something like open in stages. Keep opening tables and rooms as time goes on. It’s like starting all over again.”

Matt grew up in the restaurant business. His dad owned Jay’s Drive-In for 20 years and he helped him at other establishments in later years.

“I grew up working here and seeing my dad go through ups and downs,” Matt said. “That gives me hope that it’ll work itself out. You want everybody in the community to make it.”

The Cave and The Hunt Club are open Tuesday through Sunday from 11 a.m. until 1:30 p.m. and again from 4-8 p.m. To view menus, visit thecavebyron.com and thehuntcluboregon.com.

To place a curbside pickup order, call The Cave at 815-234-444 or The Hunt Club at 815-881-8057. ChowDown OTown can be reached for delivery at 815-979-1037.