Empty restaurants request $145B in recovery funding to stay alive

The National Restaurant Association is asking the federal government for financial relief for the industry as it forecasts sales declines of $225 billion over the next three months due to the coronavirus outbreak.

At least two dozen states across the country have mandated that restaurants close their dining rooms, while some national restaurant companies are shifting to takeout, drive-thru or delivery service only across the country. Full-service restaurants saw their traffic decline by 3.7% in the week ended March 8, according to Black Box Intelligence.

In a letter addressed to President Donald Trump, House Speaker Nancy Pelosi, and Senate Major Leader Mitch McConnell, the NRA asked for a $145 billion recovery fund from the Treasury Department for the restaurant and foodservice industry.

The industry group also proposed $100 billion in business interruption insurance that would be backed by the federal government. While many restaurants have business interruption insurance, most insurers can deny claims because policies do not include a pandemic or virus, according to the NRA.

The NRA also asked for a number of tax measures, including a temporary Social Security payroll tax cut of two percentage points.

Trump on Tuesday spoke with executives from the largest U.S. restaurant companies. One industry executive on the call with the president urged the White House to take action to support small business owners with a fund that would provide cash flow for business owners to remain solvent during the coronavirus pandemic, keep employees on payroll and continue to grow once things stabilize, according to a person with direct knowledge of the call.

Source
https://www.cnbc.com/2020/03/18/restaurant-industry-asks-for-145-billion-recovery-fund-from-the-government.html

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