HARRISBURG — The Pennsylvania Restaurant & Lodging Association is asking Congress to replenish the Restaurant Revitalization Fund (RRF), which made grants available for restaurant owners impacted by the COVID pandemic.
The association released survey data this week highlighting the impact the omicron variant has had on the restaurant industry so far, and the positive impact the Restaurant Revitalization Fund (RRF) had on Pennsylvania’s restaurants.
According to National Restaurant Association analysis in its 10th COVID-19 Operators Survey, the first round of Restaurant Revitalization Fund grants saved more than 35,000 Pennsylvania jobs and helped 100% of recipients of a grant stay in business. Across the country, the national association found 900,000 restaurant jobs were saved in the initial round of grants.
In addition, the survey found that in Pennsylvania:
• Nearly 55% of restaurant operators that did not receive Restaurant Revitalization Fund grants feel it’s unlikely that they will stay in business beyond the pandemic without a grant.
• 88% of restaurant operators that applied for a Restaurant Revitalization Fund 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. The National Restaurant Association estimates indicate that full replenishment of the RRF will save an additional 60,000 restaurant jobs,” John Longstreet, Pennsylvania Restaurant & Lodging Association president & CEO, said in a press release announcing the data. “The RRF was a critical lifeline to many, but far more remain on the sidelines, desperately looking for support amidst continued economic uncertainty.” He added that the decisions Congress could make in the coming weeks “will be critical toward the future of the restaurants that are so proud to serve our communities.”
According to the Pennsylvania Restaurant & Lodging Association, the state’s 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.
In Pennsylvania data, a majority of survey respondents said they have not experienced a complete sales recovery to pre-pandemic levels, with 76% of operators saying their sales volume in 2021 was lower than it was in 2019. Only 15% of operators reported a same-store sales increase between 2019 and 2021.
According to information in the release:
• 93% of restaurants experienced a decline in customer demand for indoor on-premises dining in because of the omicron variant.
• 84% of operators report that business conditions are worse now than three months ago. Only 1% say business conditions improved during the last 3 months.
• 84% say their restaurant is less profitable now than it was before the pandemic.
“The new data show that restaurant recovery is paralyzed and nowhere near complete. The restaurant industry is at an inflection point, and Congress must act now to replenish the RRF,” Longstreet added.
Earlier this week, the National Restaurant Association sent a letter to leaders in the U.S. House of Representatives and the U.S. Senate, urging them to include replenishment of the Restaurant Revitalization Fund in the upcoming legislative package to fund the government.
“Two years into the pandemic, restaurants are still struggling to keep their doors open amid a surge in coronavirus cases, inflation, a labor shortage, and supply chain delays,” Sean Kennedy, executive vice president, Public Affairs for the National Restaurant Association said in the letter. “Alarmingly, the industry still hasn’t recreated the more than 650,000 jobs lost early in the pandemic, a loss 45% more than the next closest industry.”
The Pennsylvania Restaurant & Lodging Association is urging residents to tell their congressional representatives they support the initiative.
The initial Restaurant Revitalization Fund, which was part of the American Rescue Plan Act, appropriated $28.6 billion to provide funding to help restaurants and other eligible businesses keep their doors open. According to the National Restaurant Association,177,000 restaurants nationally were eligible for the grants, but did not receive them.
The Pennsylvania findings were provided by the National Restaurant Association Research Group, which conducted a COVID-19 Restaurant Impact Survey of 4,200 restaurant operators Jan. 16-18, 2022.
For more information about the National Restaurant Association visit Restaurant.org. For more information about the Pennsylvania Restaurant & Lodging Association visit prla.org.
