After two rounds of funding for PPP totaling $360 billion, restaurants are still getting crushed by the financial toll of the coronavirus pandemic.
After two rounds of funding for the Paycheck Protection Program totaling $360 billion, restaurants are still getting crushed by the financial toll of the coronavirus pandemic.
“What we’re learning is that people don’t really know how restaurants work,” IRC founding member Naomi Pomeroy told Yahoo Finance. “Restaurants really use this week’s income to pay last week’s bills. We definitely run on tight margins and so for us to take on any additional debt, [it’s] nearly impossible for us to survive.”
The PPP money is a waste for many restaurants because it only covers employee salaries for an 8-week window. For restaurants that have been closed since March, hiring staffers for a couple of weeks and making their future employment contingent on Congress passing a new round of funding for PPP is too unpredictable.
“Currently, we’re facing a whole year or more [of the coronavirus pandemic]. This is probably going to be a problem that we see for the next couple of years until there’s a vaccine,” said Pomeroy.Restaurants in certain parts of the country have reopened with a focus on observing social distancing guidelines and improving cleanliness. The IRC warns that reopening doesn’t mean that restaurants will become solvent.
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