Restaurant industry estimates losses from coronavirus at $ 225 billion

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The National Restaurant Association wrote to President TrumpDonald Trump Publicist ‘not associated’ with Kanye West at time of election incident: Trump spokesman teases 2024 race at Orlando event with O’Reilly on Jan.6 details affair for despising Meadows before the House vote PLUS and congressional leaders estimate the industry’s sales will decline by $ 225 billion over the next three months, resulting in the loss of five to seven million jobs.

At least 28 states have closed dining options for restaurants so far, and more are expected as the coronavirus spreads. The lost sales are equivalent to 25% of the previously estimated $ 899 billion the industry was expecting for annual sales in 2020, according to the association.

The total economic impact, according to the association, will be $ 675 billion, as every dollar spent in restaurants generates an additional $ 2 elsewhere in the economy.

“We are revising our business model to offer meals in different ways (take out, delivery, secure catering), but we are facing economic headwinds that will lead many restaurants to close their operations, lay off workers and terminate at our service. in our communities, ”Sean Kennedy, executive vice president of public affairs, wrote in the letter.

The National Restaurant Association called for financial relief, loans and tax measures to help it tackle the crisis.

They sought approval from the Treasury Department to create a $ 145 billion restaurant and restaurant industry stimulus fund “within 15 days of enactment and provide grants with minimal procedural delay. “.

They also asked for $ 35 billion for community development block grants for disaster relief assistance to help some restaurants prepare for a return to normalcy, noting that after 9/11, this Grant program awarded grants to companies with fewer than 500 employees.

In addition, the letter called for assistance in enabling businesses to defer mortgage, rental and loan obligations.

He demanded $ 100 billion in federally backed business interruption insurance that allows businesses to quickly receive their insured benefits, a federal loan program equal to lost revenue, $ 45 billion in expanded access to federal loans and $ 130 million in unemployment disaster assistance.

In terms of tax measures, the association asked companies to delay, postpone or waive their tax obligations, receive tax credits if they retain their employees, reduce credit card fees and reduce temporarily social charges.

Restaurant reservations and walk-in tours were down 48% on Sunday compared to the same time last year and more than 20% since March 10, according to OpenTable data.

The airline industry this week, through Airlines for America, requested $ 50 billion in grants, loans and tax breaks to overcome the coronavirus downturn. And the tourism industry, through the US Travel Association and the American Hotel and Lodging Association, has asked for $ 150 billion in global aid.

Democrats, including Senate Minority Leader Charles Schumer (NY), are pushing back bail calls, saying the priority should be helping ordinary Americans.

The White House is asking Congress for an economic stimulus package of around $ 850 billion to deal with the economic impact of the coronavirus.


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