March 18, 2020
What restaurants owners say they need to stay in business
Government relief will be key to keeping doors open long-term
So far, the service and hospitality industry has been the hardest hit local sector as the spread of the novel coronavirus brings restaurant closures and quarantines. We’ve been asking restaurant owners how long they can survive a closure, and the answers range from two weeks to six months, with most saying about two months. Many believe that 50 percent of restaurants may not survive the pandemic.
What do restaurants need to keep their doors open after the crisis passes? Here are what owners are hoping for.
Payroll tax breaks
Pausing payroll taxes would keep more money in the hands of staff members who have had their hours cut.
Fast access to zero-interest SBA loans
The shutdown of the restaurant industry happened over a couple of days. Businesses will need access to capital just as quickly.
Loan deferral or forgiveness
Ensuring restaurants who miss payments for loans or leases aren’t penalized would be a relief. However, with low margins to begin with, even delaying payments like rent may not be enough to keep a restaurant open. As things go back to normal, it will take a long time for restaurants to recover the lost revenue — and months of rent or overdue loans will be difficult to come up with.
Stimulus funds/financial assistance
Even with a shift to takeout and delivery, restaurants are bringing in only about 20 percent of their usual revenue. Giving restaurants government assistance will help keep doors open and keep more people locally employed.
Individuals can continue supporting restaurants by ordering take-out and purchasing gift cards. See our list of restaurants offering curbside delivery here. —Kristen Wile






