By Roberto Hugo Gonzalez
As originally published in Texas Border Business newsprint edition June 2020
The founders of the Independent Restaurant Association formed a coalition to fight and to save local restaurants affected by COVID-19. On April 29, 2020, more than 500 members of the association got together through a ZOOM video conference to discuss a very delicate subject, survival of the industry.
Naomi Pomeroy, a restaurant owner in Portland Oregon, said that she had poured her heart and soul for the last 12 and a half years to her restaurant.
She became one of the founding members of the coalition because her restaurant and the 500,000 independent restaurants around the country are on the very brink of collapsing.
“In just over a month, 51,000 independent restaurants have joined the coalition as new members,” Pomeroy said, “Our mission is to be a strong voice for the millions of independent restaurants across our nation. And today we’re fighting for our lives.”
She went on to say that the restaurant sector is devastated and is now the number one contributor to America’s record unemployment; over 60% of new claims in March were from the restaurant and hospitality sector.
She pointed out that those numbers are rising and affecting independent restaurants, anchor neighborhoods, and communities. “As you know, we employ a vast network of farmers, winemakers, truck drivers, laundry workers, manufacturers, and more.”
They mentioned that 11 million independent restaurant employees would lose their jobs if there is no action.
Andrew Zimmern, also a restaurant operator, said that the severity of this crisis is intense, which has left them in urgent need of the stabilization funds, and today they are asking Congress.
“I’d like to give you a brief snapshot of our restaurant industry’s current situation, according to the Bureau of labor statistics.” He said, “66 percent of the jobs lost in March of 2020 came from the food and beverage industry. And that number is going to continue to grow.”
That same report tells that only 20 percent of independent restaurant owners in cities shut down will make it.
“That means by their admission, 80% of restaurants may not be able to continue in business. The size of the cultural loss, economic loss, and job loss with that simple fact is devastating,” Zimmern said.
He noted that according to the National Bureau of Economic Research, only 30% of restaurants would survive if the crisis lasts four months, and that’s lower than any other industry in America.
Through some of the association’s polls, they have learned that over half of independent restaurants responding have taken on at least $50,000 in new debt obligations as a result of the COVID-19 pandemic.”
During the video conference, the group leading the meeting emphasized that this message was directed to Congress, asking them for help to survive. They also encouraged all members to write to their congressional representatives.
Zimmern said that the losses that the industry has incurred have wiped out all the gains. “In the last two years, I would also point out that the relief efforts to date have not been adequate.” He said, “The payroll protection plan is a little bit of a Swiss cheese piece of legislation, very valuable for some businesses, but not enough to sustain us.”
There are over 11 million people employed in the restaurant industry, which is why independent restaurant workers across the country are coming together to call on Congress to take urgent action.
Andres, another prominent restaurant operator, said, “We need to understand that the IRC, all of us together, we contribute more than a trillion-dollar to the US economy.”
The work done by the coalition is massive as a unified group has promoted 80,000 emails directed to government elected officials, specifically to members of Congress. They have knocked in every door in Congress, and the message is clear, the restaurant industry needs help. Urgently!
