In a Jan. 24 press release, the National Restaurant Association spelled out the crushing impact of the omicron variant but also said that the Restaurant Revitalization Fund, or RRF, has had an extremely positive effect on the industry.
The release said that the RRF has been forecast to save 1.6 million jobs, and also a survey from the Association showed that some 900,000 jobs had been saved with the first round of the RRF.
It said that “new survey data highlighting the devastating impact the omicron variant has had so far, and the positive impact the Restaurant Revitalization Fund (RRF) had on the industry. In a letter to Congress, the Association highlighted that the survey shows that the first round of RRF funding saved more than 900,000 jobs and helped 96 percent of recipients of a grant stay in business.”
The release went on to say that the survey found:
- “Nearly 50% of restaurant operators that did not receive RRF grants feel it’s unlikely that they will stay in business beyond the pandemic without a grant.
- “94 percent of restaurant operators that applied for an RRF grant, but did not receive funding, said a future grant would enable them to retain or hire back employees.”
“This highlights how impactful RRF replenishment would be. Our own estimates indicate that replenishing the RRF would save an additional 1.6 million restaurant jobs,” according to Sean Kennedy, executive vice president for Public Affairs at the National Restaurant Association. Kennedy went on to say, “The RRF was a critical lifeline to many, but far more remain on the sidelines, desperately looking for support amidst continued economic uncertainty. The decisions you make in the coming weeks will be critical toward the future of the restaurants that are so proud to serve your communities.”
The release continued, “The restaurant industry was hit hard by the latest surge of COVID-19 cases caused by the omicron variant. Forced to adapt to deteriorating consumer confidence, restaurants reduced hours/days of operation, cut seating capacity, and shutdown, pivoting to off-premises dining with the end result being lower sales volumes in 2021 than in 2019.”
And, it said, “According to the survey, we know:
- “88 percent of restaurants experienced a decline in customer demand for indoor on-premises dining in because of the omicron variant.
- ‘76 percent of operators report that business conditions are worse now than three months ago.
- 74 percent say their restaurant is less profitable now than it was before the pandemic.”
Kennedy was further quoted as saying, “The new data show that restaurant recovery is paralyzed and nowhere near complete. The restaurant industry is at an inflection point, and we need your leadership now more than ever. Congress must act now, to replenish the RRF in the upcoming legislative package to fund the government.
The full letter to Congress can be accessed at here.
Additionally, key findings of the National Restaurant Association Research Group COVID-19 Restaurant Impact Survey of 4,200 restaurant operators Jan. 16-18, 2022, can be accessed at here.
