November 24, 2022
  • November 24, 2022

Our recovery is going backwards

By on September 29, 2021 0

WASHINGTON, September 29, 2021 / PRNewswire / – The National Restaurant Association today sent a letter to congressional leaders sharing the discouraging results of an operator survey and warning of the damage the Build Back Better Act (BBBA) provisions could inflict on the reconstruction of the restaurant industry.

In a new national survey of restaurateurs, research indicates that deteriorating business conditions are impacting the outlook for operators in such a way that they believe the recovery from the pandemic will last until 2022. Overall , a majority of full-service and limited-service operators say business conditions are worse now than they were three months ago. In addition, 44% of operators believe it will be more than a year before business conditions return to normal and 19% believe they never will.

The investigation also revealed:

  • 78% of operators say their restaurant has seen a drop in customer demand for on-site indoor dining in recent weeks due to the peak of the delta variant.
  • 63% of operators say their sales volume in August, historically one of the busiest months for restaurants, was lower than it was in August 2019.
  • Costs are on the rise: 91% of operators pay more for food; 84% have higher labor costs; 63% pay higher occupancy costs, but profitability is declining; 85% of operators reported lower margins than before the pandemic.
  • Although the industry added many jobs lost during the pandemic, 78% of operators say their restaurant does not have enough employees to meet current customer demand.
  • 95% of restaurateurs say their restaurant has experienced supply delays or key food or beverage shortages in the past three months.

“The recovery of restaurants in our country is officially reversed,” said Sean kennedy, Executive Vice President of Public Affairs for the National Restaurant Association. “The lingering effects of the delta variant are a further drag on an industry struggling with rising costs and declining revenues. We support many of the goals of the Build Back Better Act, but the legislation is too big and too expensive for small businesses. Restaurants still need help today and flooding them with costly new obligations will only hinder progress in turning the tide of the recovery. “

The letter underscored the Association’s opposition to several tax changes being considered under the Budget Reconciliation Bill that dramatically increase tax obligations and an effort to make drastic changes to the application of the National Relations Law. work (NLRA). He also urged Congress to replenish the Restaurant Revitalization Fund (FRR).

Concretely, the Association is opposed to:

  • Any cap on section 199A Small business tax deduction, which would deprive small businesses earning more $ 400,000 Where $ 500,000 in annual income the ability to preserve more of their working capital. The capping of Sec. A deduction would exacerbate the current financial struggle of many small and medium-sized restaurants and hold back restaurant growth for years to come.
  • The repeal of the increased base, which would make the death a taxable event for family businesses. If implemented, it would lead to a reduction in a restaurant’s operations, reduced employment, and the sale of assets or locations, causing more grief in the community than it does. dessert.
  • An increase in the corporate tax rate will cost businesses, including restaurants, more than 540 billion dollars. As the country’s second-largest private sector employer, restaurants will have fewer opportunities to invest in employee growth and expansion.
  • Adding fines for NLRA violations, which would reverse 85 years of precedent. Authorize fines of $ 50,000 To $ 100,000 because each violation of labor law upsets the old and well-established balance of labor law.

Read the full letter to congressional leaders here.

National Restaurant Association research group conducted COVID-19 restaurant impact survey on 4,000 restaurant owners Sep 7-15, 2021. Read the Key Findings Report here.

About the National Association of Restaurateurs
Founded in 1919, the National Restaurant Association is the premier trade association for the restaurant industry, comprising 1 million restaurant and food service outlets and a workforce of 15.6 million employees. We represent the industry in Washington DC, and advocate for it. We sponsor the industry’s largest trade show (National Restaurant Association Show); Leading Food Safety Training and Certification Program (ServSafe); Unique Secondary Career Development Program (NRAEF ProStart). For more information, visit and find us on Twitter @WeRRestaurants, Facebook and YouTube.

SOURCE National Association of Restaurateurs

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