The restaurant industry is already struggling to stay afloat
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The coronavirus is hitting the services sector pretty hard. The governor of Oregon ordered bars and restaurants to close for anything other than takeout on Monday. The same thing is happening all across the country, especially after New York and Los Angeles shut things down, too. So how’s the restaurant industry dealing?
Back in February, the Taiwanese restaurant 886 in Manhattan started seeing a steady slowdown. Co-owner Eric Sze said the drop-off in business was manageable at first.
Then last Thursday, New York City declared a state of emergency.
“And then, just, poof,” Sze said. “Nobody came.”
Sze said by Friday, revenue was down 80%. That cut directly into the cash he uses to pay his employees, buy supplies and pay rent. A restaurant like his doesn’t have a buffer to sustain a hit like that.
“You’re operating on crazy, crazy thin margins,” he said.
On Sunday, Sze closed down the restaurant and sent employees home. That same day, Emmeline Zhao, who manages Little Tong Noodle Shop, shut down one of her three Manhattan locations.
Zhao said the restaurant industry is already risky, and something like this can be devastating.
“We’re seeing only the beginning of it, and it terrifies me,” Zhao said.
New York City’s Department of Small Business Services is offering businesses grants and zero-interest loans.
“That money could go to anything,” said Gregg Bishop, the department’s commissioner. “It could be to install a point-of-sale system, it could be to do something different than they normally would have done.”
A group of independent restaurants around the country is offering discounted gift cards. They call them “dining bonds,” and the idea is to keep cash coming in. Other restaurants are trying different strategies.
Steve Chu runs a restaurant called Ekiben in Baltimore. He’s now focusing on app-based ordering and delivery. And also bleach to keep the whole process clean.
“Like, our door handle used to be black, now the silver’s definitely showing,” Chu said.
At 886 in New York, Sze will start selling beef noodle kits customers can heat up at home.
“I’m heading in after this call to prep, actually,” he said, adding that he’ll use the proceeds to pay his employees — who are now out of a job.
COVID-19 Economy FAQs
What’s going on with extra COVID-19 unemployment benefits?
The latest: President Donald Trump signed an executive action directing $400 extra a week in unemployment benefits. But will that aid actually reach people? It’s still unclear. Trump directed federal agencies to send $300 dollars in weekly aid, taken from the federal disaster relief fund, and called on states to provide an additional $100. But states’ budgets are stretched thin as it is.
What’s the latest on evictions?
For millions of Americans, things are looking grim. Unemployment is high, and pandemic eviction moratoriums have expired in states across the country. And as many people already know, eviction is something that can haunt a person’s life for years. For instance, getting evicted can make it hard to rent again. And that can lead to spiraling poverty.
Which retailers are requiring that people wear masks when shopping? And how are they enforcing those rules?
Walmart, Target, Lowe’s, CVS, Home Depot, Costco — they all have policies that say shoppers are required to wear a mask. When an employee confronts a customer who refuses, the interaction can spin out of control, so many of these retailers are telling their workers to not enforce these mandates. But, just having them will actually get more people to wear masks.
You can find answers to more questions on unemployment benefits and COVID-19 here.
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