Nearly two-thirds of restaurants across New York state say they may close permanently without an additional bailout from the government.
A new survey from the New York State Restaurant Association of 1,042 restaurants found 64% said they are likely to close by the end of the year due to lost business amid the coronavirus pandemic. Indoor dining remains banned in New York City, and Upstate New York eateries are still required to limit capacity to less than 50% on top of other Covid-19 restrictions.
“It is painfully clear that without financial assistance, the restaurant industry in New York State could collapse,” Melissa Fleischut, President & CEO of NYSRA, told the New York Post. “These recent survey results illustrate just how dire the financial situation has become for most restaurants, and it shows how critical it is that elected officials understand the urgency of the situation.”
More than a third of respondents said they expected to stay in business next year, but more than half of those in danger of closing said they would shutter their doors before November. The Post reports 80% of NYC’s 27,000-plus restaurateurs were unable to fully pay their July rent.
Alcohol-to-go, outdoor dining, and takeout orders have helped some stay afloat, but may not for much longer. Business owners have asked Gov. Andrew Cuomo to allow indoor dining in NYC and expand capacity for indoor seating statewide.
“We would find it very difficult to survive past January,” Jason Birchard, co-owner of the Ukrainian restaurant Veselka in Manhattan, told CNN. “I’m doing the best I can right now.”
Cuomo said Thursday that he knows NYC restaurants are struggling, but won’t let allow indoor dining until the city comes up with a plan to make sure they are following Covid-19 regulations.
“These institutions are under dire economic circumstances,” Cuomo said. “And we know that compliance has to happen.”
Another coronavirus relief package remains up in the air in Congress, and it’s unclear how much assistance would be provided for the restaurant industry if passed.
In the meantime, more than 300 restaurant owners have sued New York City and the state for more than $2 billion over the continued ban on indoor dining, despite the Empire State’s infection rate staying below 1% for more than a month. In Central New York, a handful of local restaurants have closed permanently and cited challenges from the coronavirus.
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