Press Release
FOR IMMEDIATE RELEASE
January 26, 2022
Media Contacts:
Emily Daunt
Michigan Restaurant & Lodging Association (517) 377-3933 |
Michael Odom or Adam O’Connor
Marx Layne & Company (734) 259-9060 Odom’s cell (248) 321-0586 O’Connor’s cell |
Omicron Variant Hit Restaurant Industry Hard; Replenishing the RRF Forecast to Save more than 50,000 Michigan Jobs
New survey from National Restaurant Association shows 35,000 Michigan jobs saved with first round of RRF Funding
New survey from National Restaurant Association shows 35,000 Michigan jobs saved with first round of RRF Funding
LANSING, MICH. – The Michigan Restaurant & Lodging Association today released new survey data highlighting the devastating impact the omicron variant has had so far, and the positive impact the Restaurant Revitalization Fund (RRF) had on the Michigan industry. According to National Restaurant Association analysis, the first round of RRF funding saved more than 35,000 Michigan jobs and helped 94 percent of recipients of a grant stay in business.
In addition, the survey found:
“Our survey delivers reliable data to what everyone in Michigan already knows – that Omicron is closing restaurants and significantly complicating our recovery,” said Justin Winslow, MRLA President & CEO. “Fortunately, we have a solution in the Restaurant Revitalization Fund that we know works, but we need Congress to act quickly to supplement its funding.”
The restaurant industry was hit hard by the latest surge of COVID-19 cases caused by the omicron variant. Forced to adapt to deteriorating consumer confidence, restaurants reduced hours/days of operation, cut seating capacity, and shutdown, pivoting to off-premises dining with the end result being lower sales volumes in 2021 than in 2019.
According to the survey, we know:
“The National Restaurant Association estimates indicate that full replenishment of the RRF will save an additional 50,000 restaurant jobs in Michigan,” Winslow added. “The RRF was a critical lifeline to many of our restaurants, but far more remain on the sidelines, desperately looking for support before they are forced to close their doors forever. The decisions Congress could make in the coming weeks will be critical toward the future of many restaurants that serve as the cornerstone of their community.”
The MRLA has issued a call to action, encouraging Michigan residents to urge members of Congress to replenish the RRF and attach the legislation to the upcoming government spending package. For more information, visit https://p2a.co/NN075Ia.
The Michigan findings were provided by the National Restaurant Association Research Group, which conducted a COVID-19 Restaurant Impact Survey of 4,200 restaurant operators Jan. 16-18, 2022. Read the report of key Michigan findings by clicking HERE.
In addition, the survey found:
- Nearly 43 percent of restaurant operators who did not receive RRF grants feel it’s unlikely that they will stay in business beyond the pandemic without a grant.
- 97 percent of restaurant operators who applied for an RRF grant, but did not receive funding, said a future grant would enable them to retain or hire back employees who would otherwise have been temporarily or permanently laid off.
“Our survey delivers reliable data to what everyone in Michigan already knows – that Omicron is closing restaurants and significantly complicating our recovery,” said Justin Winslow, MRLA President & CEO. “Fortunately, we have a solution in the Restaurant Revitalization Fund that we know works, but we need Congress to act quickly to supplement its funding.”
The restaurant industry was hit hard by the latest surge of COVID-19 cases caused by the omicron variant. Forced to adapt to deteriorating consumer confidence, restaurants reduced hours/days of operation, cut seating capacity, and shutdown, pivoting to off-premises dining with the end result being lower sales volumes in 2021 than in 2019.
According to the survey, we know:
- 86 percent of restaurants experienced a decline in customer demand for indoor on-premises dining in recent weeks because of the omicron variant.
- 76 percent of operators report that business conditions are worse now than three months ago.
- 78 percent of operators say their restaurant is less profitable now than it was before the pandemic.
“The National Restaurant Association estimates indicate that full replenishment of the RRF will save an additional 50,000 restaurant jobs in Michigan,” Winslow added. “The RRF was a critical lifeline to many of our restaurants, but far more remain on the sidelines, desperately looking for support before they are forced to close their doors forever. The decisions Congress could make in the coming weeks will be critical toward the future of many restaurants that serve as the cornerstone of their community.”
The MRLA has issued a call to action, encouraging Michigan residents to urge members of Congress to replenish the RRF and attach the legislation to the upcoming government spending package. For more information, visit https://p2a.co/NN075Ia.
The Michigan findings were provided by the National Restaurant Association Research Group, which conducted a COVID-19 Restaurant Impact Survey of 4,200 restaurant operators Jan. 16-18, 2022. Read the report of key Michigan findings by clicking HERE.
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.
About the National Restaurant Association
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 1 million restaurant and foodservice outlets and a workforce of 15.6 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). For more information, visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and YouTube.
Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 1 million restaurant and foodservice outlets and a workforce of 15.6 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). For more information, visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and YouTube.
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