SMBs Appeal Congress for More Restaurant Assistance as Pandemic Continues

Small restaurants’ challenges in the pandemic have not been alleviated, with the highly contagious omicron only adding to their problems, The Wall Street Journal reported Saturday (Jan. 9).

Higher costs, bigger debts and consumer fears leading to emptier businesses have all piled onto restaurants. Restaurant operators, signing a letter in December to Congress, have said many are in danger of closing permanently if they don’t get extensions on a federal fund to help and replenish the food service industry.

The fund was created by Congress last year and had $30 billion in it, but the money didn’t last long, running out within a few weeks. Lobbyists, including the National Restaurant Association, have been pushing for more funding.

“In the outbreak of new variants, restaurants are the first ones to suffer, so there is heightened interest in moving on this,” said Sean Kennedy, a vice president at the restaurant lobby, per the WSJ report.

However, there has been no legislation introduced and the bill is likely to face resistance from Republican lawmakers, whose position has usually been that there’s already been enough money sent out to combat the pandemic’s effects.

The pandemic fundamentally changed restaurants, adding in multiple new complications such as dining room closures, mask wearing and, in some cases, proof of vaccination. While the pandemic appeared to be receding early last year, further variants and varying health guidances have made it hard for restaurants to recover.

Fast food spots have usually recovered quicker than sit-down restaurants. Over 63% of independent restaurants are full-service establishments, according to numbers from market research firm NPD Group. Customer orders at full-service restaurants were almost 18% lower in the year ending November of 2021 as opposed to the same time before the pandemic.

PYMNTS wrote that restaurants have been looking at digital efforts to beef up operations, including diner-style chain Friendly’s, which is looking at enhancements, and Dickey’s Barbecue Pit, which is rolling out a new virtual brand.

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