Alarmed by a recent reported shift in customer dining behavior, the Connecticut Restaurant Association, along with its national and state counterparts, is pushing Congress to replenish a federal aid program for the industry they say fell short of its original goal.
In a letter sent to leaders of the U.S. House and Senate on Tuesday, the associated restaurant lobbying groups urged lawmakers to pass replenishment bills adding approximately $60 billion to the Restaurant Revitalization Fund, which is administered by the U.S. Small Business Administration. The new infusion of capital is needed, they said, because many businesses that applied to the program in its initial phase have not yet received help.
According to the Connecticut Restaurant Association, that number includes 2,066 pending applications from Connecticut eateries, which together are requesting over $489 million in stabilization funding.
“There are thousands of Connecticut small business owners stuck in limbo waiting to find out if Congress will act to provide the stability they need to make it through this new pandemic threat and into the future,” said Connecticut Restaurant Association Executive Director Scott Dolch. “The rise of coronavirus variants like delta threaten to push these restaurants closer to permanently closing their doors. It’s time for Congress to step in and fulfill the promise of the [Restaurant Revitalization Fund].”
The petitioners pointed to a recent survey by the National Restaurant Association showing that many customers — 6 in 10, according to consumer responses — have already altered their dining habits in response to the spread of the COVID-19 delta variant, which is driving U.S. infection numbers to levels not seen since last winter, at the height of the pandemic.
The study found that 19% of respondents have stopped going out to restaurants, while 37% have opted to order takeout or delivery rather than dine at restaurants in person.
That decline in business is expected to compound numerous other issues confronting the industry, including rising labor costs, increased food and supply prices, growing long-term debt loads and indoor occupancy restrictions, which are still in place in some states.
“For an industry that requires a ‘full house’ every evening to make a profit, this is a dangerous trend,” said Sean Kennedy, executive vice president of public affairs at the National Restaurant Association. “These changes indicate declining consumer confidence that will make it more difficult for most restaurant owners to maintain their delicate financial stability.”