The NYC Hospitality Alliance conducted an important survey for restaurants, bars, nightclubs, and event venues in NYC about their sales during COVID-19.
75 PERCENT OF NYC RESTAURANTS REPORT YEAR-END
REVENUE DECLINE OF MORE THAN HALF, SURVEY FINDS
-- Continued Government Support for Rent & Payroll Top Struggling Restaurants’ Needs
46 Percent Won’t Survive Without It --
NEW YORK, NY, March 24, 2021 – Another jarring measure of the pandemic-propelled economic crisis for New York City’s restaurant industry was revealed today by a new survey from the NYC Hospitality Alliance.
After a 2020 laced with government enforced closures, restricted indoor dining, and significant economic loss, 44 percent of more than 400 responding restaurants, bars, and nightlife establishments across the five boroughs reported year-end revenue declines of 76-100 percent compared to 2019; 31 percent of businesses reported year-end revenue declines of 51-75 percent; and 21 percent of businesses reported year-end revenue declines of 26-50 percent.
And conditions didn’t improve early in the new year, with 50 percent of respondents reporting an average weekly revenue dip of 90-100 percent in January compared to January 2020.
While Covid-19 restrictions remain in effect, 49 percent of restaurants insist that financial aid from government to cover rent is the most critical form of support and 41 percent say financial aid to cover payroll is. Without adequate financial aid and ongoing policies to protect small business owners, such as the commercial rent eviction moratorium, 46 percent of respondents said their businesses won’t survive.
“The survival of our restaurants and bars is essential to the economic recovery of New York City, so the continued number and nature of these struggling small businesses is alarming” said Andrew Rigie, executive director of the NYC Hospitality Alliance. “The federal financial relief for the restaurant industry championed by Senate Majority Leader Schumer and signed by President Biden was a crucial lifeline for thousands of our restaurants, but without a continuous and concerted effort at all levels of government to revive the industry, the chances of recovery for these businesses and the city will only diminish.”
The NYC Hospitality Alliance was a leading advocate for the financial relief directed towards the industry as part of the American Rescue Plan, but even with that important victory, advocates say more long-term help is needed.
“The industry needs continued financial support in the form of rent relief and payroll assistance, plus the extension of the moratorium on commercial rent evictions, and it’s critical that New York follows the science and reopens indoor dining to higher occupancy as restaurants outside of the five boroughs have done safely and responsibly for months,” Rigie continued.
A link to the full survey results can be found here.