Posted on 06/16/2020 8:01:53 AM PDT by Enlightened1
Dan Wu, an immigrant chef and owner of Atomic Ramen in Lexington, Kentucky, operated his restaurant for two and a half years before COVID hit.
The location’s closure turned from temporary to indefinite as the government instituted stay-at-home orders and dining room restrictions. To-go and delivery weren’t feasible lifelines. Eventually it became clear the restaurant wasn’t going to hang on, so Atomic Ramen closed permanently about three weeks ago.
Wu’s situation is an example of what numerous independent operators are facing nationwide. According to a report released by Compass Lexecon in conjunction with the Independent Restaurant Coalition, 85 percent of independent restaurants could permanently close by the end of 2020—crumbling a segment that generates about $760 billion in sales and employs 11 million people. This if direct aid, like a stabilization fund, is not provided.
Independent restaurants are more at risk of permanently going out of business due to the pandemic because consumer spending at these establishments has been disproportionately affected and they lack the same access to capital markets, the Coalition said.
“With millions of jobs at stake, the collapse of independent restaurants would ignite a downward economic spiral with ripple effects in other already hard-hit industries in the travel, hospitality and leisure sector that would be felt for years,” the report reads. “Mass failure may also destabilize the commercial real estate market if these restaurants cannot pay rent, which could also incite a spillover effect in the larger economy.”
Wu said this spells trouble for minority business owners.
"What I’m afraid of is that the people that are least likely to survive are going to be these small single locations—immigrant-run, women-run, people-of-color-run operations. … We’re the ones that don’t have the infrastructure like the chain restaurants to survive this,” Wu said during a briefing Wednesday.
At the federal government level, Democratic Rep. Earl Blumeanuer from Oregon is proposing legislation called the RESTAURANTS Act, which would establish a $120 billion fund for foodservice or drinking establishments that aren’t publicly traded or part of a chain that includes 20 or more locations under the same name. The funds would provide grants to restaurants and bars and prioritize locations with annual revenues less than $1.5 million. The money is intended to target small, local restaurants, particularly those owned by women and people of color. The dollars would cover typical costs such as payroll, benefits, mortgage, rent, utilities, maintenance, supplies, food, and debt obligations.
Compass Lexecon’s report estimates that Blumeanuer’s legislation would grow the economy up to $271 billion and reduce the unemployment rate by an estimated 2.4 percentage points.
Thanks COVID-19. That worked much better than expected.
Can the government guarantee the customers will come back?
It’s the government’s fault they were all shut down so I guess we are going to have to pay.
Go complain to your left wing governors and mayors.
Maybe since they forced them to shut down for months.
More fast-food (junk food) restaurants. What’s not to love?! /s
In a few years, then, a huge number of new restaurants will open up. The number of people who want to run a restaurant, and are willing to give it a shot, is incredible.
In other words:
The Government is Taking These businesses without compensation, there is NO clause in the COnstitution for the Flu.
I think we let them close and let the rebuilding begin. We cannot save everyone. It’s impossible. The states want bailouts, the companies as well. Small restaurants are wanting money. We’ve spent 3 trillion already. Need to put the piggy bank away.
So does San Wu get a real job then as another 'just' hated W-2 worker ( the kind the GOP abandoned 40 years ago)?
The flu and participating states are destroying private enterprise, deliberately. USA is so asleep, it cannot protect itself from this great evil.
So, according to the article, immigrant owned, female owned, and racial minority owned restaurants will collapse. No mention of caucasian male owned? Are there no such establishments? Do they not count? Are they assumed to be better run?
Or how about a cheaper fix.
Oregon could open their restaurants NOW.
The majority of small business owners (60+%) are Republican. Democrats are using the shutdowns to put them out of business.
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