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NRA study: COVID-19 impact worse than initial projections

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April 21, 2020

A National Restaurant Association study revealed that the impact from the coronavirus pandemic will be worse than initially projected with restaurants having lost $30 billion in March alone and on track to lose $50 billion this month.

The economic loss nationwide, by the end of the year, will be $240 billion, according to a press release on the study results. The industry has lost two-thirds of its workforce as well.

The findings spurred the NRA to create a response plan and the group is calling Congress to support its 'blueprint for recovery.'

The $240 billion plan, called RFIRF, is a grant-based program that would support ongoing operating expenses and provide support for rehiring and treating the workforce. It would provide relief for the second-largest private-sector employer, according to the NRF, as the restaurant industry is larger than ground transportation, airlines, spectator sports and railroads combined.

The grants would be available on a quarterly basis via an online portal housed on the IRS website and restaurant owners could apply for their prior years-on-years quarterly gross revenue through the end of 2020.

The survey revealed that more than 60% of restaurant owners don't believe the federal relief programs created in the past tow months, including the CARES Act, will help them keep workers on payroll.

"The restaurant industry has been the hardest hit by the coronavirus mandates — suffering more sales and job losses than any other industry in the country," Executive Vice President of Public Affairs Sean Kennedy wrote in the NRA letter to bipartisan congressional leaders.

"On March 18, we wrote you warning of a bleak outlook for the restaurant industry…as the pandemic was unfolding. One month later, we have a clearer picture of the severe challenges that lie ahead, and ask for a focused solution on behalf of an industry that is a vital part of every community," he added.

"Each of you has a favorite restaurant in your home state — one that exemplifies your culture, your cuisine, and your community. The restaurant industry epitomizes the American dream, but it is uniquely vulnerable to both the current circumstances and the future uncertainty of dining in an era of social distancing," Kennedy said.

Click here to read the association's Blueprint for Recovery and click here to read a copy of its letter.