New York State Restaurants Among the Hardest Hit
— Losing $1.9 Billion and more than 250,000 Jobs
A nationwide restaurant survey conducted recently is shining light on the devastating impact COVID-19 is having on the industry. The numbers coming out of New York are especially sobering.
“While our industry nationwide is deeply impacted, New York State restaurants are among the hardest hit. Now that New York has become the global epicenter of the pandemic, we fear the devastating and lasting impact on our restaurants, especially in New York City, the culinary capital of the world. Many restaurants have already closed and will never reopen, and restaurant employees are out of work, trying to figure out what’s next. We’ll continue to seek immediate assistance for the industry and find ways to ensure long-term viability,” said Melissa Fleischut, President & CEO of the New York State Restaurant Association.
The nationwide survey, conducted by the National Restaurant Association and provided here by the New York State Restaurant Association, reached more than 4,500 restaurant operators and was conducted March 23-26.
The findings are as follows:
- Nationwide, an estimated $25 billion in sales and more than 3 million jobs were lost in the industry in the first 22 days of March 2020.
- In New York, an estimated $1.9 billion in sales and more than 250,000 jobs were lost in the same time period.
- Nationwide, restaurant operators reported a 47-percent decline in sales over the same period last year.
- In New York, operators reported a 58-percent decline in sales.
- Nationwide, 70 percent of restaurants laid off employees. Additionally, 50 percent expect more cuts in the next 30 days.
- In New York, 78 percent of operators laid off employees. 52 percent expect more cuts in the next 30 days.
- Nationwide, 44 percent of operators temporarily closed their restaurants.
- In New York, 48 percent of operators temporarily closed their restaurants.
While the restaurant industry has been negatively impacted in the first few weeks of the COVID-19 crisis, restaurant operators and employees are preparing for continued hardship. An estimated three percent of restaurant operators nationwide (5 percent in New York) have permanently closed their doors. Another 11 percent (12 percent in New York) anticipate permanently closing their restaurant within the next 30 days.
“Our members are being tested across the state like never before. They’ve had to adapt on the fly as this situation isn’t changing by the week or day; it is changing by the hour or minute. Many have pivoted or revamped their business models to stay afloat for the time being. Some attempted that and decided to close. We urge everyone to utilize takeout and delivery from their favorite restaurants during this difficult time. Restaurants are an important piece of the local economy. They must be around to assist with the eventual recovery,” added Fleischut.
The New York State Restaurant Association has supported their members by working with Governor Cuomo in advocating for a delay in sales tax payments, a moratorium on evictions and adjustments in State Liquor Authority regulations. This has allowed some operators to keep their doors open during this crisis.
