How Much Are Restaurants Expected To Lose Due To The Pandemic?
As the U.S. tries to prevent the spread of the coronavirus, social distancing measures have been implemented, store closures have ensued, much of which unfortunately extends to a lot of our favorite restaurants.
Even with delivery and take-out being the go-to options for many, the impact these restaurants will feel could still cause them to lay off employees, or ultimately shutter.
That is why the National Restaurant Association has crunched the numbers, and formally sent a proposal to the White House, asking for $355 billion in restaurant relief.
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The NRA has estimated that in the next three months alone, restaurants will lose $225 billion in sales, and forcing anywhere from 5 to 7 million employees to lose their jobs.
Even then, the three month estimate doesn’t take into account that the White House anticipates this crisis to dig into July, or possibly August, meaning the industry could have five more months of these losses.
The NRA is asking for $145 billion from the Treasury as a recovery fund to help pay employees and everyday operations. Another $35 million would go towards disaster relief, helping businesses defer mortgages, leases and loans. Another $100 billion would go towards “loan and insurance protections” over the anticipated long-term recovery time.
Then another $130 billion would go to disaster unemployment assistance, while a $45 billion expansion is being asked for conventional and federal loans.
Time will tell how long the country will be shutdown in this manner, but in the short term, a lot of restaurants are in dire straits and need help just as much as any other industries receiving federal help.
