RRF | KRG Hospitality

March 29, 2023by David Klemt David Klemt No Comments

What’s Up with the Restaurant Tax Credit?

What’s up with the Restaurant Revitalization Tax Credit?

by David Klemt

If you’re wondering what’s going on with the Restaurant Revitalization Tax Credit bills in the House and Senate, you’re probably not alone.

And if you find yourself wondering about them, that’s likely because there isn’t much news about the bills. Unfortunately, it appears that no meaningful progress has been made on HR 9574 or S.5219.

A quick check shows that both bills share the same status: Introduced. As for the House bill, HR 9574, that was introduced on December 15, 2022 by Representative Earl Blumenauer (D-OR). The Senate bill, S.5219, was introduced by Senator Benjamin Cardin (D-MD) on December 8, 2022.

It’s important to note that Sens. Cardin, Patty Murray (D-A), and Sherrod Brown (D-OH) reintroduced S.5219 in January of this year. However, that apparently didn’t mean much as the Congress.gov trackers show no progress.

Last year, some opined that neither bill would receive a vote until January 2023 at the earliest. That “prediction” has proven true, of course—it’s now the end of March.

Restaurant Revitalization Tax Credit Act Summary

Let’s take a quick look at HR 9574 and S.5219.

Both bills propose a $25,000 payroll offset for restaurants. Eligibility requirements are also identical: applicants must have applied for but not awarded a Restaurant Revitalization Fund grant.

Additional, eligible applicants are:

restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

So, those are elements that both the Senate and House bills share. What about the differences between the two bills?

Mainly, differences come down to the number of employees. For S.5219, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, as a reminder, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

Now, HR 9574. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

Now What?

If you believe that you’re eligible for this tax credit, it’s time to let your representatives know you want them to act.

To make things simple for everyone, I’m including the links you need to find and contact senators and representatives.

For senators, click here. And for representatives, click here.

Let them know that it’s time for action on S.5219 and HR 9574. And let them know exactly what action you expect them to take.

Image: Karolina Grabowska on Pexels

United States Capitol Building exterior and Peace Memorial

December 19, 2022by David Klemt David Klemt No Comments

Restaurant Tax Credit Support Grows

Bipartisan Effort for Restaurant Revitalization Tax Credit Grows

by David Klemt

One week after the Restaurant Revitalization Tax Credit Act introduction in the Senate, a companion bill is in play.

This time, the bill is a bipartisan effort. Representative Earl Blumenauer (D-OR) is the sponsor of HR 9574. Joining him are Reps. Brian Fitzpatrick (R-PA) and Dean Phillips (D-MN).

HR 9574 is nearly identical to the Senate version, S.5219. In fact, the only real difference relates to number of employees.

Restaurant Revitalization Tax Credit Act Summary

Just like the bill in Senate currently, the House of Representative bill proposes a $25,000 payroll offset for restaurants.

In terms of eligibility, HR 9574 is identical to S.5219: Restaurant Revitalization Fund applicants. More precisely, eligible applicants that applied for but didn’t receive an RRF grant.

Further eligibility requirements are as follows:

Restaurants with operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
restaurants with losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

If you’re familiar with the Senate’s version, which predates the House version by a week, you may be wondering about the difference between the two bills.

Well, it comes down to number of employees. For the Senate bill, restaurants with ten employees or fewer could be eligible for the maximum payroll tax credit. That credit, again, is up to $25,000 for 2023. For every employee over ten, the refund cap drops by $2,500.

However, the House bill approaches number of employees a bit differently. Restaurants with ten or fewer employees would receive the full $25,000 payroll tax offset. For restaurants with between 11 and 20 employees, the offset would be “partially refundable.”

A Lifeline

It’s likely that neither HR 9574 nor S.5219 will receive a vote until January 2023, at the earliest.

Of course, time is of the essence for our industry. This isn’t lost on Rep. Blumenauer—an author of the RESTAURANTS ACT of 2021—or his co-sponsors.

“Restaurants and their employees were hit harder than any other industry during the COVID-19 pandemic,” says Rep. Blumenauer. “The federal government has provided some help to these institutions through the Restaurant Revitalization Fund, legislation based on my RESTAURANTS Act. But the program has fallen short, with only one-third of all applicants receiving funding.”

To add to Rep. Blumenauer’s mention successful applicants, it’s estimated that more than 175,000 applicants haven’t received a grant.

Hope, as the saying goes, isn’t a strategy. But hopefully at least one of these bills is floored, voted on, and passed in January. Too many deserving restaurants have had to endure an agonizing series of RRF roller coasters.

To continue introducing bills—hope—just to watch them fail to go anywhere is becoming cruel at this point.

Image: Emily Studer on Unsplash

December 12, 2022by David Klemt David Klemt No Comments

Is Restaurant Revitalization Back?

Restaurant Revitalization Back on the Table?

by David Klemt

After watching the Restaurant Revitalization Fund die a slow, painful death earlier this year, three senators are trying to help the industry again.

Three Democratic senators seem to think that the RRF battle isn’t over. Senators Ben Cardin (D-MD), Sherrod Brown (D-OH), and Patty Murray (D-WA) are trying once again to help RRF applicants. As a refresher, Sen. Cardin is among the original RRF legislation authors.

Last Thursday, the senators introduced the Restaurant Revitalization Tax Credit Act. Now, before we get into the details, it appears this bill is a stop-gap of sorts. A statement from Sen. Murray suggests as much.

Per a statement from Sen. Muray, the “Restaurant Revitalization Fund left too many behind. I believe we need to replenish the Fund and will keep pressing to do so. Until that happens, bills like the Restaurant Revitalization Tax Credit Act will help keep restaurants afloat.”

It’s safe to say a significant number of operators prefer replenishment of the RRF to a tax credit. However, this could represent a step in the right direction.

The Restaurant Revitalization Tax Credit Act

For those with an interest in dissecting the bill, the text in its entirety is here.

In summary, here’s what Sens. Cardin, Brown, and Murray want to see become law: a payroll offset of $25,000. Of course, it’s not that simple—there are requirements and nuances.

First, the only eligible restaurants are RRF applicants who didn’t receive a grant. Second, the restaurant must prove:

operating losses of at least 30 percent in 2020 and 2021 in comparison to 2019; or
losses of at least 50 percent in either 2020 or 2021 in comparison to 2019.

Additionally, applicants must have been operating at least as far back as March 14, 2020. There’s also a payroll tax requirement: the applicant restaurant must have paid the taxes in at least two quarters in 2021. But wait—it doesn’t end there.

Restaurants with ten or fewer employees could offset a maximum of $25,000 in payroll taxes for the entirety of 2023. However, for every employee over ten, the refund cap drops by $2,500.

So, this bill appears to target very small operations for assistance. Assistance, we can only hope, that’s meant to help until the Senate and House replenish the RRF.

After all, Sen. Murray did say this bill—”bills like,” to be precise—is meant to “help keep restaurants afloat.”

It’s difficult to view this effort through anything but a skeptical lens given what happened earlier this year. And hope, as the saying goes, isn’t a strategy. But I suppose this bill represents a glimmer of hope that the estimated 175,000-plus RRF applicants who never received a grant may still get the help they deserve.

Image: J. Amill Santiago on Unsplash

November 29, 2022by David Klemt David Klemt No Comments

169 Grants May be the End of the RRF

169 Grants May be the End of the RRF

by David Klemt

UPDATE: According to some sources, the report of $180 million in “leftover” RRF money are inaccurate. The disbursement of $83 million represents the final release of RRF funds.

The $83 million in grants going out this week to 169 recipients may be the end of the Restaurant Revitalization Fund in its entirety.

Unfortunately, it’s possible last week’s awards represent the final grants. This, despite the Government Accountability Office (GAO) finding $180 million in funds in July.

As far as the sources of these funds, that topic remains a bit vague.

However, the story is that more than $150 million are the result of clawbacks. More than a third, if reporting is accurate, is the result of recipients or financial institutions returning grants. Reports indicate another $24 million come from the SBA setting aside $24 million for litigation.

Per the National Restaurant Association months ago, the American Rescue Plan Act of 2021 does not include a provision for a litigation fund. Therefore, the NRA called for the SBA to disburse that money to RRF applicants.

What we do know is that last week’s RRF grant recipients should be receiving their funds this week. According to the SBA, 169 recipients were awarded a portion of $83 million in RRF money.

Again, that’s money the GAO found back in July. It’s also less than half of the reported $180 million the government agency found this summer.

Given the fact that the SBA announced a disbursement of just 46 percent of the “leftover” funds, many believed another round was in the works. Sadly, that may not be the case. It’s possible—and increasingly likely, regrettably—that the rest of the $180 million in funds won’t go to grant applicants.

Now, I want to be clear on one important point: I’m relieved for the 169 grant recipients. I truly hope the funds arrive in time to help them and their teams.

While I’ll feel disappointment if a second round of the $180 million never materializes, I’m happy for those who received a portion of the $83 million awarded last week.

Frustration

So, where does the industry go from here? The failure of Congress to replenish the RRF left a reported 150,166 applicants with zero assistance. According to Nation’s Restaurant News, it would have taken $41 billion to award each applicant a grant. Obviously, $180 million was never going to serve to help that many applicants.

Frustratingly, the answer to the question above appears to be: Move forward on our own. And that unsatisfactory answer has flooded with me opinions.

One opinion? Our industry, it seems, is always left to fend for itself. Despite the millions of people hospitality employs, lawmakers and politicians don’t seem willing to assist us—and therefore their constituents—in meaningful ways.

Another opinion? Perhaps we need to build a more powerful lobby to have our voices heard. Such an effort began in earnest to support the RRF. However, too many elected officials were comfortable refusing to replenish the fund.

A third opinion was shaped by Eileen Wayner, CEO of Tales of the Cocktail. As a guest on the Bar Hacks podcast she addressed the perception of operators and hospitality workers as being adaptable and resilient.

While those characteristics can be admirable, Wayner expressed something I think we all feel: Sometimes, we’re tired of being resilient. Sometimes, we’re tired of being expected to adapt. There are times our industry needs help.

When you’re constantly seen as resilient, people believe you don’t need assistance. What we’ve seen with the RRF and its failed replenishment is that too many people with the power to help can write us off. “They’re resilient,” they say. “They’ll figure it out. They’ll be fine.”

Well, we’re not all “fine.” We needed help, and we deserved it.

Image: CHUTTERSNAP on Unsplash

November 25, 2022by David Klemt David Klemt No Comments

SBA Releases 46% of Held RRF Funds

SBA Releases 46% of Held RRF Funds

by David Klemt

After receiving pressure from members of Congress and scrutiny from the industry and media, the SBA has released some RRF funds.

This comes after several months of inaction from the Small Business Administration.

The amount released on Wednesday, November 23 isn’t insignificant. However, the SBA disbursed less than half of the RRF money they’re sitting on.

Still, the news is welcome, particularly to the RRF applicants who finally received a grant.

$180 Million in RRF Funds

Several months ago, the Government Accountability Office (GAO) investigated the handling of the Restaurant Revitalization Fund. Back in July, the fruits of that investigation came to light: $180 million of the $28.6 billion in RRF funding had not been disbursed.

Further, it was reported in back August that the SBA was partnering with the Department of Justice to “formulate a plan on how to distribute” the money.

Now, nearing the end of November, it appears the SBA and DoJ have finalized a plan. Two days ago, on the eve of Thanksgiving, the SBA released $83 million of the $180 million that was discovered in July of this year. If every applicant received the same amount, that works out to $491,124 per grant.

With any hope, this means the remaining $97 million will go to deserving grant applicants very soon.

Where did the Money Go?

We don’t yet know which RRF grant recipients received a portion of the $83 million released this week.

What we do know is:

169 applicants received this week’s grants;
applicants were selected by the order in which they applied for grants in 2021;
each recipient was alerted about their grant award this week;
the recipients are expected to actually receive the money some time next week;
grant recipients have until March 2023 to spend the funds; and
the recipients won’t have to repay the money if they spend it on “approved purchases.”

It’s logical that the disbursement of the $97 million in remaining RRF grants will follow the same procedure.

Statements on this Week’s Developments

This week, both the Small Business Administration and National Restaurant Association made statements about the release of $83 million in RRF funds.

“This week, the U.S. Small Business Administration (SBA) began distribution of returned funding in the Restaurant Revitalization Fund (RRF) program, following the program’s closure in June 2021. In doing so, the SBA worked with the advice of the Department of Justice on a plan to distribute the remaining funds, approximately $83 million,” reads a press release from the SBA.

“In addition to other SBA assistance programs, the RRF has helped more than 100,000 restaurants and other food and beverage business owners survive the pandemic,” continues the administration’s statement.

Sean Kennedy, executive vice president of public affairs for the NRA, said the following about this week’s disbursement:

“The SBA’s action represents the final chapter of our nearly three-year effort to secure dedicated federal pandemic relief dollars for local restaurants. Today’s announcement is great news for those 169 operators fortunate enough to receive an RRF grant, but hundreds of thousands more are struggling with uncertainty.

“We must continue to look forward because the enormous challenges of the industry will continue beyond today. From the recruitment of employees to the constantly rising costs for food, running a restaurant right now is a daily struggle. There are steps the government can take to support restaurants in every community, and we will continue to press for solutions at the federal, state, and local level.”

Image: AR on Unsplash

November 11, 2022by David Klemt David Klemt No Comments

Why is the SBA Sitting on RRF Funds?

Why is the SBA Sitting on Tens of Millions in RRF Funds?

by David Klemt

Three months after the revelation that the SBA is sitting on $180 million in RRF funds, we’re wondering why they still aren’t disbursing the money.

Oh, and a handful of American lawmakers have the same question. In fact, two members of the House and two senators are requesting a plan from the SBA.

The patience of Representatives Earl Blumenauer (D-OR) and Brian Fitzpatrick (R-PA) appears to be at its end. So, too, the willingness for Senators Kyrsten Sinema and Roger Wicker (R-MS) to simply wait and see.

So, the bipartisan lawmakers are playing hardball, sending a strongly-worded letter to the Small Business Administration.

$180 Million in Available Funds

As it turns out, there are are tens of millions of dollars in unallocated Restaurant Revitalization Funds. Months ago, the Government Accountability Office (GAO) investigated the RRF situation.

Back in July, the fruits of the investigation came to light: of the $28.6 billion in the RRF, $180 million have not been disbursed. Further, it was reported in August that the SBA was working the Department of Justice to “formulate a plan on how to distribute” the money.

It’s now November and…there’s no news. Well, there’s news, but it’s that four bipartisan lawmakers are demanding answers and action from the SBA.

Look, $180 million is a far cry from the $40 billion our industry needed and deserved to have approved to replenish the RRF. Indeed, if every dollar of this “found” money is distributed to RRF applicants, just 0.44 percent would receive a grant.

However, nearly $200 million in funds can still help some operators. There’s simply no excuse for the SBA failing to disburse the funds six months after the GAO made their discovery.

Clearly, several lawmakers agree with this assessment.

Lawmakers Seek Action from the SBA

Earlier this week, Reps. Blumenauer and Fitzpatrick, and Sens. Sinema and Wicker, sent a letter to the SBA. Not only are they seeking action from the SBA, they’re seeking a plan by next week.

“We request the SBA provide Congress with a detailed plan and timeline to distribute unobligated RRF funding as well as detailed information regarding the agency’s progress in retrieving misallocated funds and distributing those funds to eligible applicants no later than Monday, November 14, 2022,” reads the letter.

Further, the lawmakers make their position clear: “It is inexcusable for the Small Business Administration to not dispense every single available dollar to help as many of our nation’s still struggling main street businesses.”

According to reports, the lawmakers who penned the letter are working with the Independent Restaurant Coalition and National Restaurant Association. Reporting states that the IRC and NRA endorse the letter sent by the lawmakers this week.

As of the publication of this article, the SBA has issued no response. Unfortunately, that’s not exactly surprising. After all, they’ve been silent on this topic for months.

Image: Giorgio Trovato on Unsplash

United States Capitol Building and Capitol Grounds

August 19, 2022by David Klemt David Klemt No Comments

Members of Congress Send Letter to SBA

Members of Congress Send Letter to SBA Regarding $180 Million

by David Klemt

More than 70 members of Congress are urging the Small Business Administration to act quickly to fund eligible RRF applicants.

This news comes on the heels of the findings of the Government Accountability Office’s investigation into the RRF. As you may recall, the GAO discovered $180 million in unobligated funds.

In response, 73 representatives and senators sent the SBA a letter. Sen. Catherine Cortez Masto (D-NV) and Rep. Earl Blumenauer (D-OR) are leading the effort to quickly and fairly distribute the $180 million.

At the start, members of Congress ask that the SBA take immediately action. Also, that the SBA give priority consideration to RRF applicants who didn’t receive funds even though they were awarded grants.

By the way, that’s about 7,000 applicants.

Unfortunately, the recently passed Inflation Reduction Act of 2022 doesn’t include funds to replenish the RRF. And while $180 million is nowhere near the $42-43 billion our industry needs and deserves, it’s something. In fact, it’s a reason to keep pushing Congress to do the right and responsible thing.

Interestingly, the letter sent to the SBA also urges the clawing back of funds for various reasons. One social media user, in response to the letter, suggested auditing the recipients. Presumably, this would also lead to a clawback and, in turn, the further awarding of grants.

Key Segments of the Letter

“Last month, the Government Accountability Office (GAO) released a report titled Restaurant Revitalization Fund: Opportunities Exist to Improve Oversight that stated that as of as of June 2022, $180 million of RRF funding was unobligated. As you know, about 177,000 restaurants that applied to the program did not receive awards. While we understand the remainder of the funding will not reach every business that applied, it is imperative that the SBA distribute every dollar to help as many struggling restaurants as is feasible.

“In addition to these actions, we are also urging that SBA take action to recover funds that have been awarded to ineligible applicants, were found to be accepted fraudulently, or could otherwise be returned. For example, the aforementioned GAO report states that SBA does not require recipients to report their operating status, despite the statute requiring that businesses that permanently close to return the unused funds to SBA. SBA has itself identified potentially ineligible recipients, such as clubs and hotels that failed to meet statutory eligibility criteria. Money recovered from fraudulent and ineligible businesses can subsequently be used to help
fund the many businesses who were unable to receive grants. We urge you to take action on this matter and provide us with detailed information on the amount of funding that may be recovered as well as SBA’s progress in doing so.”

Image: Francine Sreca from Pixabay

August 10, 2022by David Klemt David Klemt No Comments

So, What’s Up with that $180 Million?

So, What’s Up with that $180 Million?

by David Klemt

It’s not much in comparison to the $40 billion we need to replenish the Restaurant Revitalization Fund but $180 million is still significant.

According to a June 14 report, the Small Business Administration is sitting on $180 million in RRF funds. This information came to light due to a Government Accountability Office (GAO) investigation.

Unfortunately but unsurprisingly, the funds likely won’t reach operators for a while. Why is that? Well, the SBA is working with the Justice Department to “formulate a plan on how to distribute” the money.

As we know, bureaucracy tends to move at a glacial pace. Additionally, $180 million is nowhere close to the roughly $42 billion it would take to fund RRF applicants who have not received grants.

Where did this Money come From?

We know that $24 million is from funds set aside by the SBA for litigation. However, according to the National Restaurant Association, the American Rescue Plan Act of 2021 didn’t expressly include such a set aside.

Interestingly, the NRA is calling for the SBA to disperse the litigation set aside to RRF applicants. This is due to their interpretation of “the spirit of the law” and unobligated funds.

Now, on to the biggest chunk of the tens of millions of dollars in unawarded, unobligated RRF money. Where, exactly, are these funds from?

Well, it’s a little murky at the moment. Per the GAO, awards returned by either recipients or their financial instutions amount to $56 million. The rest, according to the GAO, comes from “realized or anticipated recoveries,” per their report.

However, some sources report that $156 million was clawed back by the SBA and that the $24 million set aside make up the $180 million.

So, Who gets the Money?

In short, we don’t know yet. In fact, we don’t even know if RRF applicants will have to apply again for a piece of the $180 million.

Additionally, we don’t know if applicants who received an approval for an RRF grant but didn’t receive the award will be processed first.

What we do know is that if every dollar of this “leftover” $180 million is distributed to RRF applicants, a mere 0.44 percent would receive a grant.

As Nation’s Restaurant News reports, 150,166 RRF applicants were in fact approved for a grant but never received one. It would take over $41 billion to fund all 150,000-plus applicants.

When the Justice Department and SBA finalize a plan, we’ll let you know.

Image: John Guccione on Pexels

United States Capitol Building through trees

August 8, 2022by David Klemt David Klemt No Comments

Congress Fails Us Once More

Congress Fails Us Once More

by David Klemt

A “compromise” and “far from perfect,” the Inflation Reduction Act of 2022 is yet another bill that could include the RRF but fails to do so.

Not content to deliver just the gut punches our industry has already endured, Congress is leaving us out. Again.

A bill that targets inflation in the US should, logically, include replenishment of the Restaurant Revitalization Fund. However, RRF replenishing isn’t among Inflation Reduction Act compromises.

By the way, that isn’t my assessment. It’s President Joe Biden’s summary of the bill’s passage in the Senate: “This bill is far from perfect. It’s a compromise.”

To clarify, this compromise is a $430 billion spending bill that doesn’t include $40 billion to replenish the RRF. That’s interesting, considering Democrats claim the bill will not only generate enough revenue to pay for itself, they say it will generate another $300 billion throughout the next decade.

Restaurants in the US are projected to generate nearly $900 billion in sales this year. Apparently, however, that’s not enough for our politicians and lawmakers to consider us important to the economy.

Instead, those who enjoy near-inscrutable power and are in the position to stop another bout of restaurant and bar closures have chosen not to help. Our industry, which employs millions upon millions of hard-working Americans is once again on the outside looking in.

The Road to Nowhere

In a word, the road to RRF replenishment is exhausting. One Instagram user commented as such on the Independent Restaurant Coalition‘s post about us being left out of a massive spending bill yet again.

View this post on Instagram

A post shared by Indp. Restaurant Coalition (@indprestaurants)

Three months ago, the US Senate killed RRF replenishment when they voted against even debating the Small Business COVID Relief Act of 2022.

Midway through June I reported that Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, posited that the RRF could be replenished via a reconciliation bill.

Addressing the possibility, Kennedy made clear it was a longshot. He was correct.

Indeed, the Inflation Reduction Act was passed by the US Senate via reconciliation bill. A simple majority consisting of all 50 Democrat senators and Vice President Kamala Harris sends the bill to the House.

Compellingly, the nonpartisan Congressional Budget Office’s analysis of the Inflation Reduction Act indicates the bill’s name is a misnomer. According to the CBO, the bill will either have zero or nearly-zero impact on inflation this year or in 2023. A group of 230 economists warn the bill may increase inflation.

The bill is expected to pass the House in its current form and be signed by President Biden by the end of this week.

Response from the IRC

Immediately after news broke that the Inflation Reduction Act of 2022 passed the Senate but failed to include RRF replenishment, the IRC’s Erika Palomar responded.

The executive director of the IRC said:

“For nearly three years, independently owned restaurants and bars have weathered multiple COVID-19 surges, government-mandated closures, consumer hesitancy, rising prices and ongoing restrictions, while fighting to keep their doors open and staff employed. Restaurants and bars are the heartbeat of every community, and we are incredibly disappointed to not be included in the reconciliation vote this weekend. 177,300 small businesses have been patiently waiting for relief and their needs are being ignored, again.

“Thousands of restaurants and bars are at risk of closing permanently as a result of continued Congressional inaction on the replenishment of the Restaurant Revitalization Fund (RRF). The failure of Congress and the White House to act swiftly is impacting neighborhoods in every state across the country. Congress has failed these businesses, but the Independent Restaurant Coalition is not giving up the fight in any way possible to support independent restaurants.”

Further Disappointment

Over the past 15 months (longer if we really look back), our politicians and lawmakers have been consistent about one thing. They have continually failed to recognize restaurants and bars for what they are: cornerstones of their communities.

Of course, they’ll happily use our businesses for political theater and their fundraisers. But giving us more than lipservice? Not on the agenda.

Image: Paula Nardini on Pexels

Restaurant and bar with exterior windows open

June 28, 2022by David Klemt David Klemt No Comments

What Politicians Get Wrong about Us

What Politicians Get Wrong about Our Industry

by David Klemt

It still stings that the 43 senators chose to vote against replenishing the Restaurant Revitalization Fund.

The fact that four senators didn’t vote at all on S.4008 is nearly as insulting and painful.

Now, while all the “nay” votes came from Republican senators, I’m not here to bash one party in particular. Four Republicans voted “yea,” as did two Independents.

Unfortunately, given how hostile Democrats and Republicans in Congress seem to be, it’s difficult to be objective. Right now, it appears that the RRF was left to die a slow death because many—not all, of course—Republicans in power don’t want their Democrat peers to “win” at anything.

To be used as political pawns and be left out in the cold… It’s a bitter pill to swallow.

Cornerstones

Too many politicians, it seems, view restaurants and bars as they would other types of businesses. Perhaps the perceived success of national and global brands paint the picture that independent venues and small chains don’t need any help.

More disappointingly, maybe politicians, from local lawmakers to state representatives, take our business’ role for granted.

Look at the history of restaurants and bars, of hospitality. Think about the rich history of hospitality in America alone, let alone globally.

Yes, independent restaurants and bars are small businesses. But like so many small businesses in so many towns across the country, they’re so much more.

Restaurants and bars are pillars, cornerstones of the communities they serve. These are businesses that welcome people in, treat them like family. They’re there for them as they move through their lives.

People who were seemingly at odds with another routinely found common ground over a bite and a sip. More often than not, that’s still the case.

Operators and their teams give back to their communities through food drives, quietly feeding those in need, and finding other ways to give back.

And they look out for their communities.

Lifesavers

Last week, the team at a cafe in the Bronx called the Chipper Truck helped rescue a woman from an alleged hostage situation.

Permitted by her assailant to place a food order via Grubub, the victim thought quickly and sent a life-saving note with her order:

“Please call the police… don’t make it obvious.”

A staff member read the note in the “additional instructions” section of the order and called one of the owners. Nobody at the Chipper Truck knew if the situation was real but they chose to err on the side of caution.

When the alleged assailant—who was arrested and charged with a list of serious offenses—opened the door for the Grubhub order, he was met with police officers.

A Facebook post from the cafe addressing the situation read, in part, “I’ve often heard of this happening but never thought it would happen to us. Thankfully we were open and able to help her.”

It’s terrifying that this happens enough that the cafe owners hear about it “often.” But it’s telling of the role restaurants and bars play in their communities that they’ve saved multiple lives.

This is to say nothing of the restaurants and bars that have put coded safety systems in place to help patrons who find themselves in danger.

No Such Thing as “Just” a Restaurant or Bar

There isn’t a restaurant or bar out there that’s “only” a restaurant or “only” a bar.

Every one is a source for food, for socializing, for an escape from the stresses of life. Restaurants and bars are committed to service and sacrifice.

They’re pillars of their communities, the cornerstones that play important roles in our everyday lives and the special moments as well.

Perhaps our politicians, local and otherwise, need to a reminder. Restaurants and bars play crucial roles in the lives of the people politicians are supposed to represent.

Too many politicians claim to support small businesses while their actions and votes prove otherwise. Talk, as we all know, is cheap.

Restaurants are not “just” restaurants. Bars are not “just” bars. We deserve better.

Image: Scott Webb on Unsplash