It seems like every other day we hear of an independently owned business struggling to make ends meet during the pandemic. Unfortunately, a new report confirms the dire situation—about 100,000 restaurants had to close for good over the past six months.
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The National Restaurant Association (NRA) has been surveying restaurant operators since the pandemic began and in a new report, the trade group revealed that one in six restaurants have closed in just half a year. These aren’t temporary closures either. Operators that responded to this survey said their business closed either permanently or longterm. (Related: 9 Restaurant Chains That Closed Hundreds of Locations This Summer).
Another 40% of operators with businesses still open noted 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,” the report stated.
The NRA sent a letter to Congress and the Trump Administration on Monday outlining the kind of relief restaurants need in order to survive the remainder of the pandemic. With indoor dining no longer offered in various states due to COVID-19 cases spiking, restaurants are desperate for government funding. With winter approaching, outdoor dining will cease to be an option for businesses in states where snowfall is especially heavy.
“Outdoor dining will soon be impractical for many owners, and without immediate steps from Congress, thousands of restaurants may close before you reconvene after the November elections,” the letter said.
While it’s hard to imagine losing another 100,000 restaurants in the following months, the idea isn’t as far-fetched as it may seem. Not all landlords are honoring rent relief for small businesses and restaurant capacities are still limited, so it’s nearly impossible for establishments to make enough money to stay operational.
Hopefully another round of PPP funding is underway for these businesses, or we’ll be seeing more mom and pop cafes and eateries closing this winter. For more, check out Here’s When a New Wave of Restaurant Closures Will Happen, According to Experts.
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