Leading U.S. restaurant industry groups are clamoring for more federal aid, saying what is currently available is inadequate as they deal with ongoing difficulties caused by the COVID-19 pandemic.
As many as 90,000 eating and drinking establishments remain closed across the country, and those that have remained open continue to struggle to turn a profit, according to the Independent Restaurant Coalition
The Restaurant Revitalization Fund, approved by Congress earlier this year, has provided billions of dollars in funding, but it will still fall significantly short of what restaurant operators need to survive, the IRC said. Restaurants have until 24 May at 8 p.m. EST to apply for funding, and within the first two-and-a-half weeks of opening the application portal, more than 303,000 restaurants, bars, and other eligible businesses have already applied, together requesting more than USD 69 billion (EUR 57 billion) in funds.
“This amount won’t even come close to covering the over USD 280 billion [EUR 230 billion] in sales that restaurants and bars have lost during the pandemic,” IRC Executive Director Erika Polmar said in a press release. “The vast majority of independent restaurants and bars are still struggling to make ends meet through no fault of their own and Congress must refill the Restaurant Revitalization Fund to ensure everyone who needs relief receives it.”
Restaurant and foodservice sales are currently down USD 290 billion (EUR 238 billion) from expected pre-pandemic levels, and restaurants have lost 1.7 million jobs, according to a recent National Restaurant Association survey.
Restaurant operators surveyed said their profitability is down from pre-pandemic levels, while their costs have risen. Sixty-five percent of restaurant operators said their total sales volume in March 2021 was lower than before COVID-19.
However, 44 percent of operators expect their average sales from April through June will be higher than in March 2021.
Labor shortages have become the latest COVID-19-related issue hurting restaurant owners. Restaurants' staffing levels remain well below the industry standard, as 84 percent of operators saying their current staffing level is lower than it was in the absence of COVID-19.
“We continue to see positive growth in sales as consumer confidence grows,” NRA Senior Vice President Hudson Riehle said. “However, it is important to note that 90 percent of operators say recruiting and retaining employees will likely be more difficult after the pandemic is over than it was before it began. This is a large contributor to why more than half of full-service operators and 42 percent of limited-service operators polled are unable to open at the maximum-allowed capacity and grow back their business: they do not have enough employees to staff the restaurant.”
Photo courtesy of Kits Pix/Shutterstock
