The affect of the Omicron variant of coronavirus on the US restaurant trade is alarming, says the Nationwide Restaurant Affiliation. About 88% of eating places skilled a decline in demand in current weeks on account of Omicron, a brand new survey by the Nationwide Restaurant Affiliation revealed Monday. About 76% of restaurant operators report that enterprise is worse than it was simply three months in the past.
In simply the previous couple of weeks, 51% eating places have lowered hours and 34% closed on days they might usually be open, the survey finds. That is on high of the losses that eating places are nonetheless attempting to recoup from the final two years. About 74% of operators say their restaurant is much less worthwhile than it was earlier than the pandemic, the survey discovered.
In a letter to Congress Monday, the Nationwide Restaurant Affiliation highlighted the necessity to replenish the $28.6 billion Restaurant Revitalization Fund (RRF) within the upcoming laws package deal. The fund ran out of cash final yr – awarding grants to only a third of these restaurant operators that utilized.
The Nationwide Restaurant Affiliation estimates that $43 billion in further funds would support the 177,000 eligible restaurant operators who utilized for the fund final yr didn’t obtain cash. The group additionally estimates it will save 1.6 million jobs at the moment in danger.
“New information from our tenth COVID-19 Operators Survey present that restaurant restoration is paralyzed and nowhere close to full,” mentioned Sean Kennedy, govt vp of public affairs on the Nationwide Restaurant Affiliation within the letter. “The restaurant trade is at an inflection level,” he added.
The RRF saved greater than 900,000 jobs and helped 96% of the 101,000 eating places that acquired funding to remain in enterprise, in keeping with the survey. But, it exhibits, 46% of restaurant operators who utilized however didn’t obtain funding mentioned it’s unlikely they are going to be capable to survive if they don’t obtain a RRF grant.
“After two years of closures, COVID-19 variants, employee shortages, and inflationary stress, a harmful variety of eating places are on the finish of the road,” mentioned Kennedy.
A bipartisan invoice to replenish the fund is being crafted by Sen. Ben Cardin of Maryland and Mississippi Sen. Roger Wicker, which might additionally embody further aide for different small companies. There is no such thing as a timeline on when it is going to be launched.
The Nationwide Restaurant Affiliation Analysis Group carried out the COVID-19 Restaurant Influence Survey of 4,200 restaurant operators from Jan.16-18. That is the group’s tenth Covid-19 Operators Survey.
