US restaurants on Wednesday asked President Donald Trump for at least $455 billion due to the ongoing coronavirus crisis.
They made this request because the industry could lose nearly half of its 15.6 million jobs and a quarter of annual sales due to the pandemic.
According to the Washington D.C.-based National Restaurant Association (NRA), restaurants could take a $225 billion hit over the next three months, which is equal to a quarter of their projected 2020 sales of $899 billion.
State and local officials are trying to slow the spread of the virus that has infected more than 7,300 nationally and killed 118 Americans.
Read also: Over 2,500 Shows, Exhibitions Cancelled this year over Coronavirus
As food service establishments are forced to close or shift operations to delivery, pickup and drive-thru only, the industry could lose as many as 7 million jobs, the NRA said in a letter addressed to President Donald Trump, Senate Majority Leader Mitch McConnell and House Speaker Nancy Pelosi.
Because every dollar spent in a restaurant generates additional $2 somewhere else in the national economy, the broader economic impact could be a loss of $675 billion, the NRA said in the letter.
Nine in 10 restaurants have fewer than 50 employees and operate on thin margins and little extra cash flow.
PM News reports that the executives from McDonald’s Corp, Restaurant Brands International Inc, Yum! Brands Inc and other big fast food chains met with Trump and White House officials on Tuesday about a rescue package.
The NRA is reportedly requesting immediate access to cash through a $145 billion Restaurant and Foodservice Industry Recovery Fund, as well as $100 billion of federally-backed business interruption insurance, $135 million of disaster unemployment assistance, $45 billion of loans, $35 billion of federal community block grants and tax reforms.
Leave a Reply