Restaurant Revitalization Ends
Restaurants Face Closing
A sobering May 19 article from the Independent Restaurant Coalition claims that at least 50% of restaurants could close after the senate does not pass funding for struggling restaurants. Sponsored by Senator Roger Wicker and Senator Ben Cardin, The Small Business COVID Relief Act hoped to replenish the Restaurant Revitalization Fund (RRF), which 90 senators voted to create last February, with $40 billion. However, in a 52 to 43 vote, the funding did not pass.
According to Erika Polmar, Executive Director of the Independent Restaurant Coalition, more than half of the 177,300 restaurants waiting for this grant will close within the next few months. “Local restaurants expected help and the Senate couldn’t finish the job”, according to Polmar. The report states that at least 90,000 restaurants and bars have closed since the beginning of the pandemic, which is when the Independent Restaurant Coalition originated.
In 2021 alone, nearly 300,000 restaurants applied for the Restaurant Revitalization Fund grants, but nearly 200,000 didn’t receive the funding. Here are some interesting statistics from the article:
– 42% of businesses that did not receive RRF grants are in danger of filing for or have filed for bankruptcy, compared to just 20% that received RRF grants.
– 28% of businesses that did not receive RRF grants have received or are anticipating receiving an eviction notice compared to just 10% that received RRF grants.
– Restaurant and bar owners who did not receive an RRF grant are taking on more personal debt. 41% of people that did not receive RRF reported taking out new personal loans to support their businesses since February of 2020. This is only true for 19% of businesses that received an RRF grant.
– 46% of businesses reported that their operating hours were impacted for more than 10 days in December 2021.
– 58% of businesses reported that their sales decreased by more than half in December 2021. If you are a restaurant or bar owner who is looking to sell your liquor license because of the current difficult climate in this industry, give us a call. We have qualified buyers waiting and are here for you.
For More Liquor License articles – check out The Advisor Magazine – Issue 16.
20 Years In The Boston & Massachusetts Liquor License Business
What’s Next?
Twenty years is a long time to reflect back on and recall some incredible stories!
Some of the main characters who influenced my career path include Howard Deering Johnson, Donnie Wahlberg, Charlie Perkins, and of course, Dick Newcomb, my Father and original creator/owner of the Mug ‘n Muffin restaurants.
Our original family restaurant business started in 1965 in Wollaston, Massachusetts, the birthplace of one of America’s best-known restaurant chains, Howard Johnson’s (HoJo’s). My Dad’s new restaurant, named Mug ‘n Muffin, was opened in July 1965, only 1.5 years after I was born, so I was essentially born into the family business. Even as a young kid, I was involved as my Dad grew his business, which had evolved to 26 restaurants by the early 1980’s.
I grew up flipping eggs and burgers at my family’s restaurant, and before I was old enough to do that, I watched guys like Bobby Orr and other decorated Boston Bruins stop in for coffee, as one of the main restaurants was conveniently located across from the old Garden. Over the years, I watched my Dad negotiate with vendors and landlords and I now realize that I was getting a front-row seat to a real-life masterclass in influence before I was old enough to drive. I knew I wanted to be a restaurant owner and run my Dad’s business.
After I graduated college in 1986, we re-developed the concept, worked hard, and I was able to grow from two to four restaurants that I managed for the family. A lot of work and stress brought a lifestyle I didn’t want to maintain as my own family grew.
Ironically, my Dad’s restaurant was a regular host to AA groups, and I’ve been sober since March 28, 1988.
To see how the next 20 something years go – check out The Advisor Magazine – Issue 16.
The Process of Buying a Liquor License in the United States