What’s with the restaurants?

The National Restaurant Association told US Congressional leaders that COVID-19 relief funds were envisioned as a vital tool to help restaurants bridge the crisis, but there are increasing warning signs that more relief will be needed to help restaurants and employees.

The Association pointed out that the COVID-19 crisis has already cost three million restaurant employees their jobs and cut $25 billion in revenue from the industry since March 1, and that 15 percent of restaurants have or will within two weeks, permanently close with total job losses projected at seven million before the crisis abates.

“While COVID-19 funds are helping many businesses and employees across the country, there is no escaping that a growing number of restaurant owners feel that the current help is not going to prevent them from permanently closing their operations in local communities,” Executive Vice President Sean Kennedy said.

However, some presume that as soon as the restrictions are lifted, people will storm the restaurants and bars to enjoy a social life again. Whether it’s a cocktail, a great steak, chicken wings and beers in a sports bar, or their favorite burger, people will want a treat. Caution will be thrown to the wind and people will spend what little money they might have to enjoy socializing again for a couple of weeks. People will need a release and that will mainly come in the form of food and alcohol.

Nevertheless, the boost might not be long-lasting, though, as consumers’ financial reality sets in. That’s what the restaurant owners are afraid of.

MMP
photo: Pixabay