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May 14, 2020,
Certain subject matter, which previously was highly participated in during polite company in better times, now makes us cringe when spoken of in polite company.
It is how the current pandemic has hit our beloved restaurant industry.
It’s not a pretty subject.
The news about it goes beyond pretty bad to absolutely horrific.
Reports like this one continue to send shockwaves throughout the entire industry. As shared by theindychannel.com, “Steak ‘n Shake permanently closed 57 of its restaurants nationwide during the first quarter of 2020 as its parent company attributed major financial losses to the COVID-19 pandemic. The closings decreased the number of Steak ‘n Shake locations to 553 from 624 at the end of the first quarter in 2019.”
As other restaurants have found out, there just isn’t enough takeout sales, even at $60 a meal to pay rent in the thousands of dollars per month.
Another news and business information source bizjournals.com added, “City Cafe, the neighborhood coffee shop that evolved into a sleek, full-service restaurant and bar at the corner of Cathedral and Eager streets, will close after a quarter-century in business.
Co-owner Gino Cardinale confirmed the news Tuesday. He said the decision was prompted by the economic toll of the novel coronavirus outbreak.”
Research indicates it took 25-and-a-half years in business for the Baltimore restaurant to become a success and during the devastating pandemic, it took only months to permanently take them out.
An important group that is monitoring the national situation and are trying to come up with improvement solutions is The National Restaurant Association.
The National Restaurant Association is a restaurant industry business association in the United States, representing more than 380,000 restaurant locations. It also operates the National Restaurant Association Educational Foundation. The association was founded in 1919 and is headquartered in Washington, D.C.
The National Restaurant Association, widely referred to as “the other NRA” to distinguish itself from National Rifle Association, which shares the initialism, is a powerful lobbying force in Washington, DC, and in state capitals.
Given the following research it appears they are more owner and management supportive than employee friendly. Perhaps.
It is very active in fighting efforts to retain the minimum wage in the United States as well as laws requiring paid sick leave.
That’s right. Fighting against it.
In July 2013, it boasted that it had successfully lobbied against raises in the minimum wage, in part or in full, in 27 of 29 states and blocked paid sick leave legislation in 12 states. It also takes credit for halting any increase in the federal minimum wage for tipped employees, which has remained at $2.13 per hour since 1991.
We’re a little confused but we’re sure it will all clear up soon.
The NRA supported the Fighting Hunger Incentive Act of 2014 (H.R. 4719; 113th Congress), a bill that would amend the Internal Revenue Code to make permanent extend and to expand certain expired provisions that provided an enhanced tax deduction for businesses that donated their food inventory to charitable organizations.
The NRA argued that “the deduction for charitable donation of food inventory is a critical tool in alleviating hunger” because it “encourages donating the food to charity, by helping to offset the costs associated with preserving, storing and transporting the extra food.
Still, they do foster processes that are employee friendly.
The National Restaurant Association develops food safety training and certification program for restaurant employees.
It also offers scholarships to foodservice and hospitality management and culinary students through NRAEF, and it runs a national program for high school students.
During our current pandemic, this program is certain to help.
The Restaurant Employee Relief Fund (“Fund”) was created to help restaurant industry employees experiencing extraordinary hardship in the wake of the coronavirus disease (COVID-19) outbreak.
Through this Fund program, grants will be made to restaurant industry employees who have been impacted by COVID-19, including a decrease in wages or loss of employment. Grants will be awarded as soon as possible to those individuals who meet the prescribed eligibility criteria, as reviewed and verified by the National Restaurant Association Educational Foundation (NRAEF). This Fund is operated by the NRAEF, whose mission is to attract, empower and advance todays and tomorrow’s restaurant and foodservice workers.
Very good to know. Exceptional cause.
Right now, all of us can make a huge difference in the lives of United States restaurant workers by making a donation to the Fund. And, if you have been impacted by the loss of work in restaurants, you can learn more about financial assistance.
There are grants too.
Grants will be awarded as soon as possible to those individuals who meet the prescribed eligibility criteria, as reviewed and verified by the NRAEF. Subject to the availability of funds contributed to the Fund, a one-time grant of $500 will be disbursed directly to the applicant following NRAEF’s review and confirmation that their submitted application meets the prescribed guidelines. Awards will be limited to one grant per person. All grant approvals are at the discretion of the NRAEF.
We appreciate that information and now we’re going to view an update from this important organization.
Restaurant Employment Falls to Lowest Level Since 1989
In two months, the industry lost more jobs than any other industry
WASHINGTON, May 8, 2020 /PRNewswire/ — The restaurant industry lost more than three decades of jobs in the last two months, according to National Restaurant Association analysis of preliminary data released by the Bureau of Labor Statistics (BLS) today. Eating and drinking places – which are the primary component of the total restaurant and foodservice industry – lost 5.5 million jobs in April, on a seasonally-adjusted basis, which follows a net decline of nearly a half-million jobs in March. This is nearly three times more jobs than any other industry.
“In February, there were more than 12 million people on the payrolls of eating and drinking places across this country, but today more than six million restaurant workers are home without a job – and that number is going to grow,” said Sean Kennedy, executive vice president of Public Affairs for the Association. “It is critical that Congress provide targeted relief for the restaurant industry and its employees.”
On April 20, the Association sent to Congress a “Blueprint for Recovery” that outlines how Congress can improve the outlook for the industry’s survival by creating a Restaurant and Foodservice Recovery Fund, making necessary fixes to the Paycheck Protection Program that will help make the funds usable for the industry’s unique business plans, and tax credits that will help support the industry as it reopens.
“Following a natural disaster, restaurants are the last businesses to reopen and to start recovery,” said Kennedy. “When it’s one town or one state, we rally to help those restaurants. This is a nationwide disaster that’s going to need a nationwide plan for restaurants to recover.”
For more information about how restaurants have been impacted by the pandemic shutdown, state-by-state, visit restaurantsact.com.
To get the latest coronavirus information and resources for the foodservice industry, go to restaurant.org/covid19.
About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 1 million restaurant and foodservice outlets and a workforce of 15.6 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We sponsor the industry’s largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF’s ProStart). For more information, visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and YouTube.
SOURCE National Restaurant Association
Related Links
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https://www.bizjournals.com/baltimore/news/2020/05/12/city-cafe-closing-permanently-coronavirus.html
https://en.wikipedia.org/wiki/National_Restaurant_Association
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