10,000 Restaurants Across The U.S. Could Close Down In The Next Few Weeks

The National Restaurant Association is warning that the coronavirus pandemic could result in more than 500,000 restaurants closing down permanently. Without immediate financial assistance from the federal government, at least 10,000 restaurants around the country may have to shut down before the end of the year.

According to a survey of 6,000 restaurant operators, most have a bleak outlook going into 2021. The survey found that 87% of full-service restaurants have seen their business decline by an average of 36%, while 83% said they expect sales to go down even more during the winter.

"What these findings make clear is that more than 500,000 restaurants of every business type—franchise, chain, and independent—are in an economic free fall," National Restaurant Association Executive Vice President Sean Kennedy said in a press release. "And for every month that passes without a solution from Congress, thousands more restaurants will close their doors for good."

The organization put together a nine-point plan to strengthen the Paycheck Protection Program and provide relief to struggling restaurants. Some of the proposals include allowing borrowers to deduct "ordinary and necessary" expenses and forgiving loans under $150,000.

Since the start of the global pandemic, 110,000 restaurants have been forced to close down due to lockdown measures and limits on the number of people allowed to dine inside. Only 48% of former restaurant owners plan to remain in the industry, even after the pandemic is over.

"In short, the restaurant industry simply cannot wait for relief any longer," said Kennedy. "We appreciate the efforts of a group of moderate members of the House and Senate to advance a true compromise between the competing proposals from Democratic and Republican leaders. If this moderate plan represents a 'down payment' for a larger relief package in early 2021, it will provide restaurants with immediate relief to hold on through the most dangerous point in our business year."

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