Pemo TheodoreThere’s the absence of additional stimulus funding that could help aid the purchase of cold-weather equipment or keep staff on payroll, as well as a resurgent pandemic that’s prompting lawmakers across the nation to institute new restrictions. Vermont, for instance, has ordered its bars to close to in-person service through December 15, and California has instituted a 10 p.m. curfew in some hard-hit counties. Los Angeles County this weekend went a step further, deciding to shut down all dining at restaurants, breweries and bars for at least three weeks beginning on Wednesday as COVID-19 cases spike.
Those actions have prompted warnings from economists and industry groups that the restaurant and hospitality industry could face a bleak winter.
“Tens of thousands of additional restaurant bankruptcies – and millions of lost jobs – are now more likely” due to new state restrictions, according to a Nov. 17 letter from the National Restaurant Association to the National Governors Association.
Between 1.4 million to 2.8 million jobs that have been recovered since April could be lost from the impact of winter weather, with many of the losses projected to hit restaurants, retail and other hospitality businesses, Gusto found in its analysis. Its economist, Luke Pardue, told USA TODAY he now believes the potential job losses have “moved more towards the 2.8 million number.”
He adds, “The 1.4 million estimate was based on the arrival of cold weather and no aid for retail shops, bars, and restaurants to keep operating. The significant spike in cases and new restrictions – with still no aid in sight – will likely cause a much broader pullback in economic activity.” Read more via MSN
