The NYC Hospitality Alliance conducted an important survey for restaurants, bars, nightclubs, and event venues in NYC about their rent obligations during COVID-19.
Press Release by the NYC Hospitality Alliance
FOUR OF FIVE RESTAURANTS AND BARS DID NOT PAY FULL RENT IN JUNE, SURVEY FINDS
36 Percent Paid No Rent at All; 90 Percent Paid Half or Less; Only 10 Percent of Leases Renegotiated
A survey released today by the NYC Hospitality Alliance details the extent that rent – often the biggest fixed cost for small businesses in New York City – continues to be a major problem for restaurant, bar and club owners during the Covid-19 pandemic.
With outdoor dining only in its early stages and the prospects of indoor dining returning to New York City soon looking less and less likely, the owners and operators of 509 restaurants and bars say they are in a bad bind.
Four of five survey respondents reported that they did not pay full rent in June, and 36 percent of respondents said they paid no rent at all. Of the portion of respondents who paid some of their rent, 90 percent paid half or less.
Nearly three quarters of landlords (73%), who are under their own set of unique challenges, did not waive rent payments for restaurants,bars and clubs in June. 60 percent of landlords refused rent deferments during the same time period. Only 10 percent of restaurants, bars and clubs were able to renegotiate their leases.
“Rent is putting enormous financial pressure on restaurants, bars and clubs after four near-fatal months of economic disaster in which many have already shuttered for good,” said Andrew Rigie, executive director of the NYC Hospitality Alliance. “Our small businesses urgently need support on rent, so government officials, landlords and banks need to work together to find a solution. Whether it’s direct rent subsidies, deferring rent and extending payment schedules to the back end of lease agreements, and other creative ideas, we are in the midst of a rent crisis and need action now. We’re eager to work with lawmakers and industry leaders on any tangible plans that provide immediate relief to struggling restaurants and nightlife venues across the city before it’s too late.”