Home Restaurant industry Financial security of the restaurant industry in danger of being destroyed by the Delta variant

Financial security of the restaurant industry in danger of being destroyed by the Delta variant

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WASHINGTON, August 24, 2021 / PRNewswire / – Today, the National Restaurant Association and its state restaurant association partners sent a letter to congressional leaders, sharing the results of a new survey on consumer confidence and urging a rapid replenishment of the Restaurant Revitalization Fund (FRR).

The survey found that a majority of consumers have already changed their restaurant behavior, which is starting to put a lot of pressure on the restaurant industry. This faltering consumer confidence comes on top of food and labor costs rising at their fastest pace in several years, lingering domestic capacity limits in 11 states, and crushing long-term debt. run from countless restaurant owners.

More 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% canceled their existing plans to eat out in recent weeks.
  • 37% ordered takeout or delivery instead of going out to a restaurant,
  • 19% chose to sit outside rather than inside when going out to a restaurant.

“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, which will make it more difficult for most restaurateurs to maintain their fragile financial stability.”

The letter urges Congress to complete the RRF’s mission and provide sufficient funds to replenish the program and provide relief for still pending applications.

“The rise of coronavirus variants like the Delta threatens to push these restaurants to close their doors for good,” Kennedy added. The RRF has proven effective in all states, saving the restaurants, workers, and vendors who depend on their businesses. The small gains our industry has made in financial security risk being wiped out, 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 has shown positive gains for the industry, there is still a long way to go, especially for full-service restaurants facing the greater threat of new government restrictions in response to the delta variant.

Read the full letter here.

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About the National Association of Restaurateurs
Founded in 1919, the National Restaurant Association is the premier trade association for the restaurant industry, comprising 1 million restaurant and food service outlets and a workforce of 15.6 million employees. We represent the industry in Washington DC, and advocate for it. We sponsor the largest trade show in the industry (Salon of the national association of restaurateurs); Leading Food Safety Training and Certification Program (ServSafe); Unique Secondary Career Development Program (NRAEF ProStart). For more information visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and Youtube.

Contact: Vanessa sink
Director of Media Relations
[email protected]

SOURCE National Association of Restaurateurs

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