Leaders of the National Restaurant Association and the Ohio Restaurant Association are asking Congress to replenish the Restaurant Revitalization Fund (RRF) program so it can help thousands of cash-strapped restaurants.
The two organizations, along with 50 other state restaurant association partners, sent a letter to congressional leadership this week sharing a concerning national consumer confidence survey that shows that, nationally, a majority of consumers have already changed their dining behavior, especially in August.
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"This is beginning to put acute pressure back on sectors of the restaurant industry," the press release from the groups says. "Faltering consumer confidence comes on top of restaurant labor costs at a 10-year high, increased food and supply prices, continued indoor capacity limits in 11 states and crushing long-term debt loads for countless restaurant owners."
The letter urges swift replenishment of the restaurant fund, which was signed into law by President Joe Biden in March and approved by Congress in April. The original fund allocated $28.6 billion, but it ran out.Now Congress is being urged to allocate at least $60 billion toward what amounts to a new version of the fund.
"Ohio has 6,804 pending applications that total more than $991 million in stabilization funding that would be addressed by the $60 billion proposed replenishment bills," the press release read. "More than 68 percent of eligible applicants have not received funding."
The letter also urges Congress to offer relief for the applications still pending, as well as to businesses that were approved for grants, but never got them.
One of those approved was Kristin Steuber, co-owner of the Gruff restaurant in Covington. Steuber was excited this past May when she learned she'd be receiving around $30,000 in relief funds from the U.S. government via the restaurant fund.
As a female business owner, she made sure to apply for the funds within the first 21 days. That time was allotted for women, veterans and minorities , who were given a jump-start in the application process since they often have a harder time securing resources and funding.
By May, Steuber learned she'd be receiving $30,000, money she thought would make up for her losses during the novel coronavirus pandemic, help her maintain payroll and, hopefully, invest in some new outdoor dining furniture for the upcoming summer.
But on June 12, she received another letter, letting her know the money was being rescinded.
That's because, in late May, three white restaurant owners from Tennessee, Texas and Pennsylvania filed a lawsuit against the U.S. Small Business Administration claiming race and sex discrimination toward applicants who were not within the priority group. The suit led the SBA to put a hold on all payments on the priority group until the case was resolved, though it continued payments to those who were not a part of the priority group.
By the time the case was resolved, all of the restaurant relief money was gone .
“There are thousands of Ohio small business owners stuck in limbo waiting to find out if Congress will act to provide stability they need to make it through this new pandemic threat and into the future,” said John Barker, president and CEO of the Ohio Restaurant Association. “The rise of coronavirus variants like delta threaten to push many restaurants, especially independents, closer to permanently closing their doors. It’s time for Congress to step in and fulfill the promise of the RRF.”
"The industry is still fragile," Barker told The Enquirer. "While a lot of fast-food and fast-casual restaurants are doing pretty well, the independent restaurants that make up for a huge portion of the industry aren't."
Barker mentions how independent restaurants don't have access to the built-in systems and advantages that other restaurants do (including technology, ordering apps and drive-thru windows), since they can't afford to get them without turning to lending institutions and stressing their lines of credit.
