From New York City to Dallas to Minneapolis, restaurants struggle to face the financial burden of takeout-only, reduced capacity
In the two months since coronavirus caused mass dining room closures, restaurants have closed, applied for government loans, tried to stay afloat with takeout only or switched to wholesale grocer.
For some it’s worked and for others, it hasn’t.
The following seven restaurants won’t be returning when coronavirus restrictions lift in the future.
All of these restaurants shuttered in states before restrictions were lifted. Some states, including Texas and Georgia, have already re-opened dining rooms with restrictions. But, as some of the following restaurateurs stated in their closure notices, operating a successful business at 25% capacity for the foreseeable future is not a viable option for everyone.
With the coronavirus stimulus bill, many out-of-work restaurant employees are making more money on unemployment than they did at restaurants. Some in states like California and New York are making $1,000 or more a week without a job.
The National Restaurant Association recently found that restaurant employment is at its lowest level since the 1980s. This is an industry that, as recently as six months ago, was suffering a labor shortage.
With all these factors, many operators have decided that reopening their restaurant isn’t worth the financial risk. Even rent reductions couldn’t save some of these restaurants from the ultimate financial burden.
This is our third edition of restaurant closures since the coronavirus pandemic closed dine-in operations two months ago. This roundup includes everything from a New York City egg cream institution to Wolfgang Puck’s Texas venture.
Contact Holly at [email protected]
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