Data: Thousands Of Michigan Restaurant Owners Fear Closure Is 6 Months Away

Thousands of Michigan restaurant owners — about 33% of them — expect to shutter their doors for good in about six months because of economic impacts of the ongoing COVID-19 pandemic.

The Michigan Restaurant & Lodging Association released new research Tuesday (December 15), finding that 5,600 restaurants will likely close without receiving aid.

Officials of the association are also calling on elected leaders to “pass a meaningful stimulus package” to help the local restaurant and lodging industry.

The Michigan Restaurant & Lodging Association studied survey data gathered in conjunction with the NRA from November 16 through November 30, collecting responses from 6,000 respondents on a national level and 175 in Michigan, according to the association.

The Michigan Restaurant & Lodging Association also included findings from the American Hotel & Lodging Association, which collected data from November 10 through 13.

Like restaurant owners, hotels also expressed concern about operating on current revenues.

Two-thirds of hotels, which accounts for 850 in Michigan, responded that they can only last another six months without relief, according to the Michigan Restaurant & Lodging Association.

The Michigan Restaurant & Lodging Association also noted that 52% of hotel owners fear foreclosure and nearly 90% of restaurant operators in the state expect a decrease in sales in the next three months.

Nearly half of restaurant owners are considering a temporary closure until the COVID-19 pandemic passes, according to the association.

“The data is settled,” Justin Winslow, President & CEO of the MRLA, said in a press release. “It is fundamentally clear that the pandemic is decimating the hospitality industry in this state to a degree never seen or even imagined. While it will take several years and a stable economy to reclaim the size, impact and opportunities produced by this industry, we have not yet reached the bottom.”

“As the legislative calendar draws to a close, there are several thousand operators and a few hundred thousand employees in Michigan urgently hoping that the holiday spirit consumes our elected leaders in Washington D.C. and Lansing to pass a meaningful stimulus package for those most in need this holiday season,” Winslow added.

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