Press Release
FOR IMMEDIATE RELEASE
December 15, 2020
Media Contacts:
|
Emily Daunt
Michigan Restaurant & Lodging Association (517) 377-3933 |
Leslie Pardo/Michael Odom
Marx Layne & Company (248)563-7213 |
MRLA RELEASES NEW HOSPITALITY INDUSTRY ECONOMIC IMPACT DATA
5,600 restaurants likely to close permanently without immediate aid
5,600 restaurants likely to close permanently without immediate aid
LANSING, MICH. – The Michigan Restaurant & Lodging Association (MRLA) today released new research tracking the economic impact of COVID-19 on the hospitality industry throughout the state. The data is localized to Michigan based upon surveys conducted in conjunction with the National Restaurant Association (NRA) and the American Hotel and Lodging Association (AHLA). The data reveal an industry in turmoil and on the brink of irreconcilable damage.
“The data is settled,” said Justin Winslow, President & CEO of the MRLA. “It is fundamentally clear that the pandemic is decimating the hospitality industry in this state to a degree never seen or even imagined. While it will take several years and a stable economy to reclaim the size, impact and opportunities produced by this industry, we have not yet reached the bottom.”
“As the legislative calendar draws to a close, there are several thousand operators and a few hundred thousand employees in Michigan urgently hoping that the holiday spirit consumes our elected leaders in Washington D.C. and Lansing to pass a meaningful stimulus package for those most in need this holiday season,” Winslow added.
Significant survey results include the following:
The restaurant survey data was gathered by the MRLA in conjunction with the NRA from Nov. 16 until Nov. 30 with a total of 6,000 respondents nationally, including 175 from Michigan. The hotel industry survey data was collected nationally by AHLA Nov. 10 through 13 with more than 1,200 respondents, including many from Michigan.
“The data is settled,” said Justin Winslow, President & CEO of the MRLA. “It is fundamentally clear that the pandemic is decimating the hospitality industry in this state to a degree never seen or even imagined. While it will take several years and a stable economy to reclaim the size, impact and opportunities produced by this industry, we have not yet reached the bottom.”
“As the legislative calendar draws to a close, there are several thousand operators and a few hundred thousand employees in Michigan urgently hoping that the holiday spirit consumes our elected leaders in Washington D.C. and Lansing to pass a meaningful stimulus package for those most in need this holiday season,” Winslow added.
Significant survey results include the following:
- 5,600, or 33 percent, or Michigan restaurant operators say it is unlikely they will still be in business in six months
- Two-thirds of hotels (approximately 850 in Michigan) report they will only be able to last six more months at current revenue and occupancy levels without any additional relief
- 52 percent of hotel owners said they are in danger of foreclosure
- 89 percent of Michigan restaurant operators expect their sales to decrease during the next three months and 63% expect their staffing levels to decrease over the same period
- 48 percent of Michigan restaurant operators say they are considering temporarily closing their restaurant until the COVID-19 pandemic passes
- 90 percent of Michigan operators say their profit margin is lower than it was prior to the COVID-19 outbreak
- 63 percent of hotels have less than half of their typical staff working full time
The restaurant survey data was gathered by the MRLA in conjunction with the NRA from Nov. 16 until Nov. 30 with a total of 6,000 respondents nationally, including 175 from Michigan. The hotel industry survey data was collected nationally by AHLA Nov. 10 through 13 with more than 1,200 respondents, including many from Michigan.
About the Michigan Restaurant & Lodging Association
Michigan Restaurant & Lodging Association (MRLA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice and lodging community. Founded in 1921 as the Michigan Restaurant Association and now known as the MRLA, the Association represents over 5,000 Michigan foodservice and lodging establishments. The industry plays an integral role in Michigan's economy, employing more than 595,000 people and creating nearly $40 billion in annual sales. For more information, visit www.mrla.org and www.detroitrla.org.
Michigan Restaurant & Lodging Association (MRLA) is the recognized leader of Michigan's hospitality industry, providing essential services to the foodservice and lodging community. Founded in 1921 as the Michigan Restaurant Association and now known as the MRLA, the Association represents over 5,000 Michigan foodservice and lodging establishments. The industry plays an integral role in Michigan's economy, employing more than 595,000 people and creating nearly $40 billion in annual sales. For more information, visit www.mrla.org and www.detroitrla.org.
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