Restaurant Closures Have Topped 110,000 As Industry Struggles Without Federal Aid

The restaurant industry in the United States has permanently lost more than 110,000 bars and eateries in the over 200 days since the pandemic first forced operations to come to a halt.

According to a survey from the National Restaurant Association, 17% of establishments in the industry have either closed permanently or experienced long-term closures, as of December 2nd.

“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,” Sean Kennedy, executive vice president for Public Affairs, said in a letter sent to congressional leadership on Monday. “And for every month that passes without a solution from Congress, thousands more restaurants will close their doors for good,” Kennedy warned.

The data included in the survey illustrated that the vast majority of restaurants that have permanently closed were well-established businesses and fixtures in their respective communities for an average of 16 years.

Before their untimely closings, those restaurants employed an average of 32 people, and 17% employed at least 50 people.

The hard-hit restaurant industry is full of long-time entrepreneurs. Despite being the second-largest private employer in the nation, calls from struggling restaurant leaders for a stimulus relief plan have gone largely ignored.

“In short, the restaurant industry simply cannot wait for relief any longer,” Kennedy added. “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,” Kennedy said.