According to the latest survey released by the National Restaurant Industry Association of the United States, the COVID-19 epidemic has hit the most on the U.S. restaurant industry. Without a new round of federal assistance, tens of thousands of restaurants across the United States may close in the next three weeks.
According to the report of the National Association of Restaurants, they surveyed the operators of a total of 6,000 restaurants. The results show that a total of 110,000 restaurants in the United States have been forced to close since March, of which about 17% have been permanently closed.
The report also shows that more than half a million restaurants in the United States, including chain restaurants and independent stores, have “stood unprecedented financial deterioration”, of which 87% of the respondents said that “opening revenue fell by 36%”, and 83% of the respondents predicted that as the epidemic continued to spread, their business would be in the future. Three months will get worse.
In addition, the survey also found that the entire catering industry in the United States is expected to lose a total of $240 billion by the end of this year, and without a new round of government relief, tens of thousands of restaurants across the United States may close in the next three weeks. In particular, the epidemic has not only hit small catering enterprises hard, but also large chain brands. American fast food chain McDonald’s said that 200 of McDonald’s 14,000 stores in the United States will be permanently closed this year.
Industry insiders analyzed that one of the reasons why the catering industry is difficult to withstand the epidemic is that the industry’s profits are relatively thin. On average, the profit of restaurants is 6% to 7%, and the cash in hand is only enough to last for 16 days.
After the release of the report, the National Restaurant Association also sent a special letter to the bipartisan leaders of the U.S. Congress, calling for no more disputes, the adoption of a new round of “Paycheck Protection Plan” as soon as possible, and the introduction of the long-awaited “Food and Beverage Act”.
Tens of thousands of restaurants in the United States are expected to close within three weeks.
CNN reported on the 8th that 110,000 restaurants in the United States have been closed so far in 2020, of which about 17% have been permanently closed.
The findings of the above report are based on a survey of 6,000 restaurant operators across the United States by the National Restaurant Association. According to the survey, 87% of the full-service restaurants claimed to have lost 36% in revenue; 83% of the operators surveyed expected that business would deteriorate in the next three months as the coronavirus epidemic continued to rage.
“In a word, restaurants can’t wait for a rescue,” Sean Kennedy, executive vice president of the National Restaurant Association, said in a statement.
Kennedy said he hoped that the debate between Democrats and Republicans over the economic stimulus package would achieve a “real compromise” and that the new U.S. government will launch a larger stimulus measure in 2021.
Democratic Senator Mark Warner and others are expected to announce a bipartisan stimulus package this week, including an extension of the Paycheck Protection Program. Paycheck Protection Program “ provides a total of $600 billion in aid to small businesses during the coronavirus pandemic. Even if they get aid, many enterprises still have to struggle to survive. Some companies are worried about repayment problems, while others say that the aid received is not enough to change the fate of business failure.
However, there are still many disputes between the two parties over the above-mentioned economic stimulus plan. Among them, the “Restaurants Act 2020”, which aims to support the restaurant industry, was approved in the Democratic-controlled House of Representatives in October, but ran aground in the Republican-controlled Senate.
Several American restaurant chains went bankrupt this year, including Ruby Tuesday and California’s Pizza Kitchen, closing hundreds of stores.