COVID-19

Restaurants, bars put the brakes on reopening, just as jobs started coming back

Marielle Segarra Jul 9, 2020
Heard on: Marketplace Morning Report
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Restaurants and bars in states where COVID-19 is spiking have run up against new rules to once again cut capacity or certain services. Ronald Martinez/Getty Images
COVID-19

Restaurants, bars put the brakes on reopening, just as jobs started coming back

Marielle Segarra Jul 9, 2020
Restaurants and bars in states where COVID-19 is spiking have run up against new rules to once again cut capacity or certain services. Ronald Martinez/Getty Images
HTML EMBED:
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The latest jobs report shows that 4.8 million Americans went back to work in June. More than 30% of those job gains were from bars and restaurants.

With cities now shutting businesses back down because of spikes in COVID-19, what will the shutdowns mean for those industries?

At the end of June, because of the steep rise in COVID-19 cases in Texas, Gov. Greg Abbott, a Republican, put out an executive order. Restaurants, which had been reopening, had to drop to half capacity. Bars had to close.

“Logistically, it’s a nightmare,” said Tee Allen Parker, co-owner of Machine Shed Bar & Grill in Kilgore, Texas, near Dallas, that had to suddenly shut down again.

The Machine Shed had a charity event planned for the next day.

“We had to cancel and we were stuck with food, we were stuck with alcohol,” Parker said. “We had just put in tap beer. That was super expensive.”

The restaurant froze some of the food and donated the rest, losing thousands of dollars.

Parker is the lead plaintiff on a lawsuit that bar owners have filed against the state. She says she takes COVID-19 seriously — that she had the virus in February and it was awful, and her daughter is an ICU nurse. But she believes the bar shutdown order is arbitrary since so many other businesses in the state are open.

In Venice, Florida, Mariel Arbuckle Terone has been thinking about what’ll happen to her restaurant, Left Coast Seafood, if it’s ordered to shut down again.

“It’s something that is always looming, kind of,” she said.

After the initial lockdowns in March, the restaurant got a Paycheck Protection Program loan from the federal government and was able to bring back 80% of its staff.

But that money is almost gone, and closing down again for takeout-only would mean laying off most of its workers.

“Really, we only need one or two people in the kitchen. Maybe three people up front to answer the phone and run the food out to the curb,” Terone said.

Meanwhile, Terone is worried about the coronavirus itself. She has a 1-year-old at home. Her father, who co-owns the restaurant, is 65.

“So it’s scary for him being in here,” she said.

Terone says another restaurant in town switched to takeout-only because of the spike in COVID-19 cases. She’s wondering if that’s the right choice for Left Coast, too.

COVID-19 Economy FAQs

How many people are flying? Has traveled picked up?

Flying is starting to recover to levels the airline industry hasn’t seen in months. The Transportation Security Administration announced on Oct. 19 that it’s screened more than 1 million passengers on a single day — its highest number since March 17. The TSA also screened more than 6 million passengers last week, its highest weekly volume since the start of the COVID-19 pandemic. While travel is improving, the TSA announcement comes amid warnings that the U.S. is in the third wave of the coronavirus. There are now more than 8 million cases in the country, with more than 219,000 deaths.

How are Americans feeling about their finances?

Nearly half of all Americans would have trouble paying for an unexpected $250 bill and a third of Americans have less income than before the pandemic, according to the latest results of our Marketplace-Edison Poll. Also, 6 in 10 Americans think that race has at least some impact on an individual’s long-term financial situation, but Black respondents are much more likely to think that race has a big impact on a person’s long-term financial situation than white or Hispanic/Latinx respondents.

Find the rest of the poll results here, which cover how Americans have been faring financially about six months into the pandemic, race and equity within the workplace and some of the key issues Trump and Biden supporters are concerned about.

What’s going to happen to retailers, especially with the holiday shopping season approaching?

A report out recently from the accounting consultancy BDO USA said 29 big retailers filed for bankruptcy protection through August. And if bankruptcies continue at that pace, the number could rival the bankruptcies of 2010, after the Great Recession. For retailers, the last three months of this year will be even more critical than usual for their survival as they look for some hope around the holidays.

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