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The impact of the Omicron variant of coronavirus on the US restaurant industry is alarming, says the National Restaurant Association. About 88% of restaurants experienced a decline in demand in recent weeks due to Omicron, a new survey by the National Restaurant Association revealed Monday. About 76% of restaurant operators report that business is worse than it was just three months ago.
In just the last few weeks, 51% restaurants have reduced hours and 34% closed on days they would normally be open, the survey finds. This is on top of the losses that restaurants are still trying to recoup from the last two years. About 74% of operators say their restaurant is less profitable than it was before the pandemic, the survey found.
In a letter to Congress Monday, the National Restaurant Association highlighted the need to replenish the $28.6 billion Restaurant Revitalization Fund (RRF) in the upcoming legislation package. The fund ran out of money last year – awarding grants to just a third of those restaurant operators that applied.
The National Restaurant Association estimates that $43 billion in additional funds would aid the 177,000 eligible restaurant operators who applied for the fund last year did not receive money. The group also estimates it would save 1.6 million jobs currently at risk.
“New data from our 10th COVID-19 Operators Survey show that restaurant recovery is paralyzed and nowhere near complete,” said Sean Kennedy, executive vice president of public affairs at the National Restaurant Association in the letter. “The restaurant industry is at an inflection point,” he added.
The RRF saved more than 900,000 jobs and helped 96% of the 101,000 restaurants that received funding to stay in business, according to the survey. Yet, it shows, 46% of restaurant operators who applied but did not receive funding said it is unlikely they will be able to survive if they do not receive a RRF grant.
“After two years of closures, COVID-19 variants, worker shortages, and inflationary pressure, a dangerous number of restaurants are at the end of the line,” said Kennedy.
A bipartisan bill to replenish the fund is being crafted by Sen. Ben Cardin of Maryland and Mississippi Sen. Roger Wicker, which would also include additional aide for other small businesses. There is no timeline on when it will be introduced.
The National Restaurant Association Research Group conducted the COVID-19 Restaurant Impact Survey of 4,200 restaurant operators from Jan.16-18. This is the group’s tenth Covid-19 Operators Survey.