WASHINGTON (dpa-AFX) - The U.S. restaurant industry has lost two-thirds of its workforce, or more than eight million employees as a result of the COVID-19 closures, according to a new survey. The restaurant industry is the second-largest private-sector employer in the U.S.
The survey by the National Restaurant Association was conducted from April 10 to April 16 and covered more than 6,500 restaurant operators nationwide.
According to the survey, the restaurant industry has been the hardest hit by the coronavirus pandemic, suffering more sales and job losses than any other industry in the U.S. The industry will also be one the slowest to rebound from the downturn, as past recoveries have proven, the survey noted.
The survey found that four in ten restaurants have closed their doors since the coronavirus pandemic began and some restaurants have no hopes of reopening.
In addition, more than 60 percent of restaurant owners have said that the existing federal relief programs, including the CARES Act, will not enable them to keep their employees on payroll during the downturn.
The survey noted that restaurants lost $30 billion in March and were on track to lose $50 billion in April.
Assuming a gradual reopening of the economy in June this year, the National Restaurant Association projects sustained COVID-19 related losses of $240 billion for restaurants nationwide by the end of the year.
The National Restaurant Association's survey was included in a new industry recovery plan that was sent to Congress.
In a letter addressed to bipartisan congressional leaders, the Association called on Congress to enact a new 'Blueprint for Recovery' to provide targeted relief for the restaurant industry.
The Association is urging Congress to authorize a temporary $240 billion Restaurant and Foodservice Industry Recovery Fund.
The Association noted that while initiatives like the Paycheck Protection Program offer tremendous potential, the unique business model of the restaurant industry and its slower path to recovery make it less of a lifeline.
Changes to its implementation could provide immense help, the Association said.
'But more importantly, just as Congress has provided targeted relief for specific industries, we urge you to consider focused assistance for the restaurant industry and its employees,' the NRA's Executive Vice President of Public Affairs Sean Kennedy said in the letter.
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