Financial security of the restaurant industry threatened with being wiped out by Delta Variant
WASHINGTON, August 24, 2021 /PRNewswire/ — Today, the National Restaurant Association and its partners in the state restaurant association sent a letter to congressional leaders, sharing new consumer confidence survey results and urging to quickly replenish the Restaurant Revitalization Fund (RRF).
The survey revealed that a majority of consumers have already changed their eating behavior, which is beginning to put acute pressure on the restaurant industry. That shaky consumer confidence comes on top of food and labor costs rising at their fastest pace in several years, continued domestic capacity limits in 11 states, and long-term debt. overwhelming for countless restaurateurs.
Specifically, the investigation revealed:
- 6 in 10 adults have changed their use of the restaurant due to the increase in the delta variant.
- 19% of adults have stopped going out to restaurants,
- 9% have canceled existing plans to go out to restaurants in recent weeks.
- 37% ordered takeout or delivery instead of going to a restaurant,
- 19% chose to sit outside rather than inside when dining out.
“For an industry that needs a full house every night to make a profit, this is a dangerous trend,” said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association. “These changes indicate a decline in consumer confidence that will make it harder for most restaurateurs to maintain their fragile financial stability.”
The letter urges Congress to complete the mission of the RRF and provide sufficient funds to replenish the program and provide relief for applications still pending.
“The rise of coronavirus variants like delta threatens to push these restaurants into permanent closure,” Kennedy added. The RRF has proven its effectiveness in every state, saving restaurants, workers and suppliers who depend on their business. The small gains our industry has made in financial security are in danger of being undone, dashing the hopes of communities, entrepreneurs and consumers nationwide. »
177,000 RRF requests totaling $43.6 billion in grants are still pending.
While the first half of 2021 showed positive gains for the industry, there is still a long way to go, especially for full-service restaurants facing the greatest threat from new government restrictions in response to the delta variant. .
Read the full letter here.
About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading trade association for the restaurant industry, comprising 1 million food and beverage outlets and a workforce of 15.6 million employees. We represent the industry in washington d.c., and plead on his behalf. We sponsor the largest trade show in the industry (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique high school career development program (ProStart from NRAEF). For more information, visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and Youtube.
Contact: vanessa sink
Director of Media Relations
SOURCE National Restaurant Association