WASHINGTON – The restaurant industry continues to struggle in pandemic conditions, according to new data from the National Restaurant Association.
In a recent letter to congressional leadership, the association showed how the results demonstrate that the nation’s second-largest private sector employer remains vulnerable, which warrants prompt passage of the $25 billion Restaurant Revitalization Fund in the American Rescue Plan, the association said in a news release.
“The Restaurant Revitalization Fund represents the culmination of a year’s worth of advocacy and development toward an industry-specific solution,” said
Sean Kennedy, executive vice president of public affairs for the association. “Prompt passage and implementation will provide new relief opportunities for some of the nation’s hardest-hit restaurants and communities. Help for restaurants is help for employees and communities, and a signal that our country is one step closer to turning a corner.”
Highlights of the survey findings in the letter include:
Consumer spending in restaurants remained well below pre-pandemic levels in January. Overall, 77% of restaurant operators said their total dollar sales volume in January was lower than a year ago.
From November 2020 to January 2021, nearly 450,000 restaurant jobs were lost, representing about 10% of the jobs recovered during the first six months after the spring shutdowns. Eighty percent of operators said their staffing level was lower than it would normally be in the absence of COVID-19.
Most restaurant operators did not expect a return to normal business conditions any time soon. Thirty-two percent of operators said they thought it would be seven to 12 months before business conditions return to normal for their restaurant, while 29% think it will be more than a year. An additional 10% of operators said business conditions would never return to normal for their restaurant.
Fourteen percent of restaurant operators say they will probably or definitely close within three months if there are no additional relief packages from the federal government.