As the restaurant industry continues to grapple with the lingering repercussions of the coronavirus pandemic, many restaurants across the state are asking the government to replenish funding to help keep them afloat.
On Nov. 4, the New York State Restaurant Association, alongside local restaurant owners in the Capital Region, discussed the imminent financial hardships restaurants anticipate as the outdoor dining season comes to an end.
One of the meetings was held in Saratoga Springs, where some restaurant owners and New York State Restaurant Association president and CEO Melissa Fleischut talked about the situation.
As seasons change and options like outdoor dining space become limited, New York restaurants are looking to the federal Restaurant Revitalization Fund (RRF) program for continued relief. Many restaurants across the state found relief by expanding or overhauling outdoor dining options for their establishments.
The RRF, a federal funding program, was designed to provide emergency assistance for restaurants and bars impacted by the COVID-19 pandemic. In New York state, only 35.4 percent of businesses who applied for RRF funding received financial assistance, the association said in a news release.
There were 27,643 applicants from New York asking for $9.6 billion, and 17,868 applicants were not funded—an outstanding need of $5.9 billion, according to the group.
At Forno Bistro in Saratoga Springs, owners from DZ Restaurants, Druthers, Cantina, Henry Street Taproom, Flatbread Social and Hamlet & Ghost met with Fleischut to discuss the imminent financial hardships and the importance of continued relief from the Restaurant Revitalization Fund.
“The RRF program was deemed necessary in assisting the relief of many struggling restaurants at the height of the pandemic, but this aid is still desperately needed today,” said Fleischut in a statement.
“The replenishment of the RRF will provide additional resources for struggling restaurants to see another day and help make up for revenue lost because outdoor dining is no longer a viable option. Many in the industry have benefited from the RRF program, and many more deserve the same relief,”
.A recent survey done by the association found that 85 percent of restaurants said they’ve seen a reduction in demand for indoor dining with breakthrough cases on the rise. With colder weather at the forefront, indoor demand is not where it needs to be for many. With much at stake, restaurants who were unable to receive funding from the RRF program in the past would greatly benefit from additional funding to revamp their establishments and stabilize foot traffic.
“Restaurants need to be prioritized as our government leaders focus on various recovery efforts,” said Nancy Bambara, vice president and COO of DZ Restaurants—which operates Chianti Il Ristorante, Forno Bistro and Boca Bistro in Saratoga Springs—and a member of the association’s board of directors.
“As we head into the colder months, businesses will not have the same cushion warmer temperatures provide to sustain their revenues. The obstacles facing restaurants continue to mount as we face constant supply chain issues, increased costs and labor shortages. Restaurants play a key role in the vibrant culture of this state and our economy, but in order for this to continue our elected officials must provide necessary resources to lift us up,” she said.
The recent NYSRA survey results said that:
• 67 percent of restaurants do not expect business conditions to return to normal for at least another year, if not more.
• 85 percent of restaurants experienced a decline in customer demand for indoor dining in recent weeks due to the increase in Delta variant COVID-19 cases.
• 62 percent of restaurants saw a deterioration of business conditions in the previous three months alone.
• 71 percent of restaurants recorded a lower volume in sales in August 2021 than during August 2019, prior to the onset of the pandemic.
• Staffing shortages remain an issue as well. 78 percent of restaurants currently do not have enough employees to support existing customer demand.
• While sales lag, costs have also increased: • 92 percent reported that total food costs remain higher than they were prior to the COVID-19 outbreak.
• 89 percent reported that total labor costs remain above pre-pandemic levels.
• 67 percent reported that total occupancy costs remain higher than pre-pandemic levels.
• 93 percent of New York operators have a lower profit margin than prior to the pandemic As the restaurant industry heads into the third winter of the COVID-19 pandemic, operators are well aware of what awaits them. Operators urge elected officials to take notice of the many local establishments that have stood through this unprecedented test of time and replenish the RRF program.