NRA: 100,000 US restaurants forced to close due to COVID-19
Six months after the first shutdown of restaurants for the coronavirus pandemic, at least 100,000 U.S. restaurants have permanently closed or will do so by the end of this year, according to a new survey.
In addition, the industry is on track to lose USD 240 billion (EUR 2020 billion) in sales by the end of this year, the National Restaurant Association said in a press release.
Forty percent of restaurant operators said in NRA’s recent survey that it is unlikely their restaurant will still be in business six months from now if there are no additional relief packages from the federal government.
Restaurants’ sales dropped an average of 34 percent in August and 60 percent of operators said their restaurant’s total operational costs are higher than they were prior to the COVID-19 outbreak.
“Across the board, from independent owners to multi-unit franchise operators, restaurants are losing money every month, and they continue to struggle to serve their communities and support their employees,” NRA President and CEO Tom Bené said. “Our survival for this comes down to the creativity and entrepreneurship of owners, operators, and employees.”
The NRA is urging Congress and the Trump administration to pass small business programs in stand-alone bills to provide relief for the industry. In a letter to Congressional leaders, the NRA asked for a second round of Paycheck Protection Program funding, along with other tax credits and funding measures.
“The ongoing disruptions and uncertainty make it impossible for these owners to plan for next week, much less next year. Congress is about to leave Washington for the elections – we need them to focus on the short-term, basic solutions that have secured bipartisan support and passed one or both chambers,” NRA Executive Vice President of Public Affairs Sean Kennedy said. “We urge immediate passage of these while we work with lawmakers on the comprehensive elements of our ‘Blueprint for Restaurant Revival.’”
The plan outlines “specific and immediate action the federal government should take to stabilize the industry in the short-term and set the foundation for long-term rebuilding,” the NRA said previously.
Photo courtesy of Mark Winfrey/Shutterstock