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New survey from National Restaurant Association shows 18,000 jobs in Wisconsin saved with first round of RRF Funding Today, the Wisconsin Restaurant Association released new survey data highlighting the devastating impact the omicron variant has had so far. The survey also reveals the positive impact the Restaurant Revitalization Fund (RRF) had on the restaurant industry in Wisconsin. According to National Restaurant Association analysis, the first round of RRF funding saved more than 18,000 Wisconsin jobs and helped 95% of recipients of a grant stay in business. In addition, the survey found: Nearly 40% of restaurant operators who did not receive RRF grants feel it’s unlikely that they will stay in business beyond the pandemic without a grant. 87% of restaurant operators who applied for an RRF grant, but did not receive funding, said a future grant would enable them to retain or hire back employees. “This highlights how impactful RRF replenishment would be. The National Restaurant Association estimates indicate that full replenishment of the RRF will save an additional 30,000 restaurant jobs in Wisconsin,” said Kristine Hillmer, President & CEO of the Wisconsin Restaurant Association. “The RRF was a critical lifeline to many, but far more remain on the sidelines, desperately looking for support amidst continued economic uncertainty. The decisions Congress could make in the coming weeks will be critical toward the future of the restaurants that are so proud to serve our communities.” The restaurant industry was hit hard by the latest surge of COVID-19 cases caused by the omicron variant. Forced to adapt to deteriorating consumer confidence, restaurants reduced hours/days of operation and cut seating capacity, pivoting to off-premises dining with the end result being lower sales volumes in 2021 than in 2019. Omicron variant negatively impacted business conditions in Wisconsin The omicron variant led to a rapid deterioration in business conditions for restaurants in Wisconsin. 81% of restaurants experienced a decline in customer demand for indoor on-premises dining in recent weeks, as a result of the increase in coronavirus cases due to the omicron variant. Wisconsin restaurants took a number of actions in recent weeks, as a result of the increase in coronavirus cases due to the omicron variant: 46% reduced hours of operation on days that it is open 39% closed on days that it would normally be open 17% reduced seating capacity 7% changed to only offering off-premises for a period of time As a result, 68% of operators say business conditions for their restaurant are worse now than they were 3 months ago. Only 4% say business conditions improved during the last 3 months. This was on top of the cumulative effects of nearly 2 years of pandemic-induced challenges: 59% of operators say their restaurant accumulated additional debt since the beginning of the COVID-19 outbreak in March 2020. 49% of operators say their restaurant fell behind on expenses since the beginning of the COVID-19 outbreak in March 2020. 72% of operators say their restaurant is less profitable now than it was before the beginning of the COVID-19 outbreak in March 2020. The Wisconsin restaurant industry’s recovery is incomplete A majority of restaurants have not experienced a complete sales recovery to pre-pandemic levels. 68% of operators say their sales volume in 2021 was lower than it was in 2019. Only 26% of operators reported a same-store sales increase between 2019 and 2021. Much of the sales growth in 2021 was driven by higher menu prices, as restaurant operators were forced to offset sharply rising costs throughout their restaurant. 88% of operators say their restaurant’s total costs (as a percent of sales) were higher in December 2021 than they were in December 2020. Only 4% of operators reported lower costs. Customer traffic levels also remained below 2019 levels for most restaurants. 75% of operators say their customer traffic in 2021 was lower than it was in 2019. Only 21% of operators reported an increase in customer traffic between 2019 and 2021. The Restaurant Revitalization Fund saved many businesses and jobs in Wisconsin 95% of RRF recipients said the grant made it more likely that they would be able to stay in business during the pandemic. 82% of RRF recipients said the grant helped them retain or hire back employees that would otherwise have been temporarily or permanently laid off. The National Restaurant Association estimates that over 18,000 restaurant jobs in Wisconsin were saved as a result of the initial round of Restaurant Revitalization Fund grants. 90% of RRF recipients said the grant helped them pay expenses or debt that had accumulated since the beginning of the COVID-19 outbreak in March 2020. 82% of RRF recipients said the grant was not sufficient to cover all of their lost sales since the beginning of the COVID-19 outbreak in March 2020. A replenished Restaurant Revitalization Fund would save more businesses and jobs in Wisconsin 40% of restaurant operators that applied for an RRF grant but did not receive funding said it is unlikely that they will be able to stay in business beyond the pandemic, if they do not receive a grant through the Restaurant Revitalization Fund. 87% of restaurant operators that applied for an RRF grant but did not receive funding said a future grant would enable them to retain or hire back employees that would otherwise have been temporarily or permanently laid off. The National Restaurant Association estimates that future grants awarded after a full replenishment of the Restaurant Revitalization Fund will potentially save more than 30,000 restaurant jobs in Wisconsin that are currently at risk. Source: National Restaurant Association, national survey of 4,200 restaurant operators conducted January 6-18, 2022 The Wisconsin Restaurant Association is one of the largest trade associations in the state with over 7,000 member locations throughout Wisconsin. The mission of the Wisconsin Restaurant Association is dedicated to the success of the Foodservice and Hospitality Industry. The Association advocates on behalf of the restaurant industry, provides a voice for the restaurant industry to consumers and the media and provides access to information and services to help members better run their businesses. WRA represents the entire foodservice industry which includes over 15,000 licensed food service establishments. WRA membership includes a wide range of foodservice businesses representing virtually every size and style of restaurant in the state. Members include fine dining establishments, mom-and-pop supper clubs, small cafes, quick service restaurants, corporate chain restaurants, institutional food service operations, catering businesses and hotel and motel foodservice among others. - END -
New survey from National Restaurant Association shows 18,000 jobs in Wisconsin saved with first round of RRF Funding
Today, the Wisconsin Restaurant Association released new survey data highlighting the devastating impact the omicron variant has had so far. The survey also reveals the positive impact the Restaurant Revitalization Fund (RRF) had on the restaurant industry in Wisconsin. According to National Restaurant Association analysis, the first round of RRF funding saved more than 18,000 Wisconsin jobs and helped 95% of recipients of a grant stay in business.
In addition, the survey found:
“This highlights how impactful RRF replenishment would be. The National Restaurant Association estimates indicate that full replenishment of the RRF will save an additional 30,000 restaurant jobs in Wisconsin,” said Kristine Hillmer, President & CEO of the Wisconsin Restaurant Association. “The RRF was a critical lifeline to many, but far more remain on the sidelines, desperately looking for support amidst continued economic uncertainty. The decisions Congress could make in the coming weeks will be critical toward the future of the restaurants that are so proud to serve our communities.”
The restaurant industry was hit hard by the latest surge of COVID-19 cases caused by the omicron variant. Forced to adapt to deteriorating consumer confidence, restaurants reduced hours/days of operation and cut seating capacity, pivoting to off-premises dining with the end result being lower sales volumes in 2021 than in 2019.
Omicron variant negatively impacted business conditions in Wisconsin
The Wisconsin restaurant industry’s recovery is incomplete
The Restaurant Revitalization Fund saved many businesses and jobs in Wisconsin
A replenished Restaurant Revitalization Fund would save more businesses and jobs in Wisconsin
Source: National Restaurant Association, national survey of 4,200 restaurant operators conducted January 6-18, 2022
The Wisconsin Restaurant Association is one of the largest trade associations in the state with over 7,000 member locations throughout Wisconsin. The mission of the Wisconsin Restaurant Association is dedicated to the success of the Foodservice and Hospitality Industry. The Association advocates on behalf of the restaurant industry, provides a voice for the restaurant industry to consumers and the media and provides access to information and services to help members better run their businesses. WRA represents the entire foodservice industry which includes over 15,000 licensed food service establishments.
WRA membership includes a wide range of foodservice businesses representing virtually every size and style of restaurant in the state. Members include fine dining establishments, mom-and-pop supper clubs, small cafes, quick service restaurants, corporate chain restaurants, institutional food service operations, catering businesses and hotel and motel foodservice among others.
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