National Restaurant Association

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January 25, 2022by David Klemt David Klemt No Comments

NRA Sends Survey Results to Congress

NRA Sends Economic Survey Results to Congress

by David Klemt

On the heels of the IRC’s National Day of Action to Save Restaurants, the National Restaurant Association has sent a letter to Congress.

Sent by Sean Kennedy, executive vice president of the NRA, the letter urges Congress to finally replenish the RRF.

“After two years of closures, COVID-19 variants, worker shortages, and inflationary pressure,” reads the letter, in part, “a dangerous number of restaurants are at the end of the line.”

A Critical Moment

As I’ve written several times (exhaustively, some would say), the bill meant to replenish the Restaurant Revitalization Fund was first introduced in June 2021. We’re now a week away from February 2022.

In August of last year, a unanimous consent vote to provide $43 billion in emergency funding to the industry was shot down by Senator Rand Paul (R-KY). Build Back Better passed the House in November 2021. However, it didn’t include the Restaurant Revitalization Fund Replenishment Act.

As expressed by Sean Kennedy in an email sent yesterday, we’re at a critical juncture. Kennedy points to two dates when making his point: February 18 and March 1.

All government spending expires on the former date, and President Joe Biden delivers his State of the Union Address on the latter date. Kennedy suggests that the only large-scale spending bill of 2022 will be passed between those dates.

So, it’s probable that we have mere weeks to pressure Congress into replenishing the RRF.

The Numbers

Kennedy’s letter to Congress is addressed to Nancy Pelosi (D-CA), Chuck Schumer (D-NY), Kevin McCarthy (R-CA), and Mitch McConnell (R-KY).

Citing the results of the NRA’s largest-ever economic survey, Kennedy urges action on the RRF from Congress. The NRA’s executive vice president estimates that replenishing the RRF will save over 1.6 million restaurant jobs.

Below are the survey results included in Kennedy’s letter to Congress:

88 percent of restaurants saw decline in customer demand for indoor on-premises dining due to the omicron variant.
76 percent of operators report that business conditions are worse now than they were just three months prior.
74 percent of operators say their restaurant is less profitable now than it was prior to the pandemic.
Almost 50 percent of restaurant operators who didn’t receive RRF grants feel it’s unlikely that they’ll stay in business beyond the pandemic without a grant.
94 percent of restaurant operators who applied for an RRF grant but did not receive funding said a future grant would enable them to retain or hire back employees.
96 percent of recipients said the RRF grant made it more likely that they would be able to remain in business.
92 percent of recipients said the RRF grant they received helped them pay expenses or debt that had accumulated since the beginning of the pandemic.
The initial round of grants, per the NRA, likely saved more than 900,000 restaurant jobs.

Now is not the time to relent—we need to keep up the pressure. If Kennedy and the NRA are correct, we have only weeks to receive the help our industry needs and deserves.

Image: Harold Mendoza on Unsplash

December 21, 2020by David Klemt David Klemt No Comments

75% of American Restaurant Operators Expect Decreased Sales Through Start of 2021

75% of American Restaurant Operators Expect Decreased Sales Through January

by David Klemt

The fifth National Restaurant Association COVID-19 Restaurant Impact Survey results have been released.

Unsurprisingly and unfortunately, the news is not good.

For their fifth installment, the NRA surveyed 6,000 restaurant operators and 250 supply chain businesses between November 17 and 30. Full-service and limited-service restaurant operators, independent and chain, reported their sales had slipped in October.

Only 12 percent of restaurant operators reported seeing sales growth. In comparison, 79 percent said sales were down.

Per the NRA survey, one reason for the decline in sales is outdoor dining season coming to a close. In New York City, per Governor Andrew Cuomo’s order banning indoor dining, outdoor dining is the only option beyond delivery and takeout. However, the weather is less than attractive for outdoor diners.

Costs are disproportionate to sales for most operators. Nearly 60 percent of survey participants reported increased labor costs when compared to the start of the Covid-19 pandemic in the United States.

Profit margins, historically thin even at the best of times, were reported by 86 percent of operators who partook in the survey to also be lower than the they were prior to the pandemic.

The NRA’s predicted outcome for the industry is that without targeted and significant federal relief specifically for restaurants and bars, more temporary and permanent closures are coming, as are further losses of jobs.

According to an estimate from the NRA, more than 110,000 restaurants and bars had closed by December 1. On average, these establishments employed 32 people, and 17 percent of the closed businesses employed a minimum of 50 people.

Close to 40 percent of survey participants indicated they were considering closing their restaurants or bars temporarily and waiting out the pandemic. That means layoffs that could affect dozens of employees per establishment. Almost 60 percent of survey participants expect a reduction in their workforces over the coming three months.

Sales are expected to lag through the start of next year. The majority of operators surveyed, 75 percent, expect sales to fall even further from their already lower levels through the start of next year.

If that logical assumption becomes reality, slowed sales may trigger a domino effect: reduced traffic, plummeting sales, and increased operational costs leading to layoffs, temporary closures, and ultimately permanent closures.

Restaurants and bars require targeted relief for the industry to survive. If that help doesn’t come soon, if the RESTAURANTS Act or similar legislation isn’t signed into law, the country will lose millions of jobs permanently. The economy will be dealt a lethal blow, losing out on tens of billions of dollars.

Now is not the time to back off the pressure being put on Congress and Senate to pass the RESTAURANTS Act. Click here to tell them time is up—they must return to Washington in January to save our restaurants and bars.

Image: Enrico Hänel from Pexels

December 17, 2020by David Klemt David Klemt No Comments

New York City Restaurant Operators Rally Against Governor Cuomo’s Orders

New York Restaurant City Operators Rally Against Gov. Cuomo’s Orders

by David Klemt

Just one day after Governor Andrew Cuomo’s ban on indoor dining went into effect, New York City restaurant operators came together to protest.

Gov. Cuomo announced the ban on Friday, December 11. New Yorkers reportedly flocked to restaurants and bars that weekend for “last suppers.” The ban went into effect Monday, December 14.

New York City’s ban on indoor dining will last at least two weeks. It has been reported that state officials are considering a statewide ban on indoor dining, depending on Covid-19 trends.

Whereas New York City restaurants have been forced to operate at 25-percent capacity since the end of September, New York State restaurants have been operating at a 50-percent capacity limit.

Restaurants are permitted to offer delivery, takeout and outdoor dining. However, a massive nor’easter winter storm is blasting the east coast. Freezing weather is more than likely to keep New York City restaurants’ outdoor dining areas empty.

The Latino Restaurant Bar and Lounge Association of New York State is being credited with organizing Tuesday’s rally. The New York City Hospitality Alliance joined the protest against the indoor dining ban, as did hundreds of other restaurant and bar owners, operators and workers.

Protestors gathered at Times Square before marching from Duffy Square (the northern part of Times Square) to Midtown East where Gov. Cuomo’s office is located.

The order appears to prove the point Joe Rogan makes on the Joe Rogan Experience podcast episode with Richard Rawlings, released this week. During the episode, Rogan says the decisions politicians are making regarding restaurants and bars are arbitrary.

“There’s no science, nothing. It’s arbitrary decisions that are made by politicians,” says Rogan. “And that’s the minimum: The outdoor dining thing is the most egregious because you have all these people that spent so much money to try to convert their restaurants and make these outdoor dining [spaces]—spent thousands of dollars that they didn’t even fucking have.”

According to current New York contact tracing data, Gov. Cuomo’s ban isn’t based on science. Their own data regarding Covid-19 shows that restaurants and bars account for just 1.43 percent of infections. In contrast, based on 46,000 Covid-19 cases from September to November, private household gatherings are responsible for 74 percent of exposures.

That data also makes clearer the disparity between restrictions imposed on New York City restaurants compared to the rest of the state. Long Island restaurants, for example, have not been ordered to close their indoor dining areas.

The governor’s statement that “restaurants have adapted and New Yorkers have really adapted” rings rather hollow when, per survey results released by the New York State Restaurant Association and National Restaurant Association, 54 percent of New York restaurants are expected to close within the next six month unless they receive meaningful, targeted relief.

An argument can be made that Gov. Cuomo is, as some New York operators have stated, scapegoating restaurants and bars during the pandemic. When announcing the indoor dining ban, the governor appeared to be following through with a threat rather than acting in the best interest of public safety and New York residents.

“We said that we would watch it, if the stabilization, if the hospital rate didn’t stabilize, we would close indoor dining,” he said. “It is now. We’re gonna close indoor dining in the city on Monday.”

The numbers simply don’t support that decision.

Yesterday, New York operators asked Gov. Cuomo to repeal the ban. At the time of publication, that request has been ignored.

The protestors also called for the governor to help the industry rather than hobble it, along with demanding the RESTAURANTS Act finally be voted into law at the federal level.

Every day that passes without the RESTAURANTS Act also passing thrusts the industry further into peril. More restaurants and bars close permanently each day while Congress prepares to leave for the remainder of 2020. If Congress fails to act before leaving, the industry will be without relief through at least February.

Cities across the country imposing crippling capacity limits and dining restrictions should prepare for future protests organized by restaurant and bar owners, operators, workers and supporters.

State representatives can be contacted about the RESTAURANTS Act via this link from the National Restaurant Association.

Image: Anthony Rosset on Unsplash

December 7, 2020by David Klemt David Klemt No Comments

National Restaurant Association Shares Startling Statistics

National Restaurant Association Shares Startling Statistics
by David Klemt

An email sent out by the National Restaurant Association yesterday included statistics about the state of restaurants in the United States.

The revelations are breathtakingly disturbing.

While Congress “has been trapped in a political tug-of-war,” the reality for restaurants has only gotten bleaker.

According to the NRA, their most recent survey found that 110,000 restaurants have closed since Covid-19 first dug its infected claws into the United States. That’s an increase of 10,000 closures since the NRA’s last survey, the results of which were released back in September.

Many people outside of the industry are likely under the impression these closures are the result of inexperienced owners failing to adapt. A second NRA statistic dispels that misconception.

Sadly, the average age of the restaurants that have been closing is 16 years old. Sixteen percent had been open for more than three decades.

These closures aren’t the result of inexperience, they’re largely the byproduct of mandated shutdowns—repeated, in some markets—and restrictions handed down by officials who don’t understand the business.

Unfortunately, there’s not much reason to be optimistic that these closures are temporary. The majority of survey respondents who have closed their restaurants, 52 percent, said they won’t return.

The NRA is strongly encouraging everyone to let Congress know that enough is enough—they must make real progress to help the industry.

Please visit RestaurantsAct.com, click the button to email your lawmakers, and share that link with family, friends and industry peers. Don’t let Congress leave for the year without making your voice heard and telling them to pass relief for restaurants and bars.

If our elected officials don’t act fast, things will only get worse.

Image by Wokandapix from Pixabay