The National Restaurant Association has sent a letter to Congress demanding a ‘down payment’ relief bill for the industry.
It revealed stark figures that suggest thousands of foodservice businesses will not survive past early 2021 if aid is not provided.
Sean Kennedy, executive vice president for public affairs, National Restaurant Association, said in the letter: “What these findings make clear is that more than 500,000 restaurants of every business type — franchise, chain, and independent — are in an economic free fall.
“And for every month that passes without a solution from Congress, thousands more restaurants will close their doors for good.”
The National Restaurant Association Research Group conducted the survey of 6,000 restaurant operators and 250 supply chain businesses from November 17-30, 2020.
It found an average 36% drop in sales revenue among 87% of fullservice restaurants (independent, chain and franchise).
It also suggested that while costs have dropped for restaurants, this is by no means proportional to the drop in revenue.
Meanwhile, 58% of chain and independent fullservice operators expect continued furloughs and layoffs for at least the next three months.
Across the US, the National Restaurant Association reported that 17% of restaurants — more than 110,000 establishments — are closed permanently or long-term.
“In short, the restaurant industry simply cannot wait for relief any longer,” said Kennedy. “We appreciate the efforts of a group of moderate members of the House and Senate to advance a true compromise between the competing proposals from Democratic and Republican leaders.
“If this moderate plan represents a ‘down payment’ for a larger relief package in early 2021, it will provide restaurants with immediate relief to hold on through the most dangerous point in our business year.”