The $48 billion Small Business COVID Relief Act of 2022 (S. 4008), introduced by Senators Ben Cardin (D-MD) and Roger Wicker (R-MS), included $40 billion for RRF replenishment and $8 billion in support for other industries deeply impacted by the pandemic. The House passed the Relief for Restaurants and other Hard Hit Small Businesses Act of 2022 (H.R. 3807), that included $42 billion to replenish the RRF, on April 7. Both political parties agreed that the RRF should be replenished but couldn’t reach a consensus on how to pay for it.

Despite the best efforts of the South Carolina Restaurant and Lodging Association, the National Restaurant Association, and our members, round two failed by a vote of 52-43. Disappointingly, Senators Lindsey Graham and Tim Scott from South Carolina voted against invoking cloture to overcome the filibuster (60 votes were needed).

The SCRLA will continue to fight for South Carolina's hospitality industry— one of the top economic drivers in our state, supporting one in every 10 jobs. We want to thank our members who joined in our grassroots efforts and contacted their elected officials, even though the outcome is not what we had hoped. Along with our partners at NRA, we will continue searching for any further opportunities to address much needed relief. This may appear to only be a “restaurant issue”, however, hotels and venues were impacted as well.

Click here to read the full press release from the National Restaurant Association.

The SCRLA would like to extend a sincere thank you to Sean Kennedy, Matt Walker, Dan Roehl, Aaron Frazier, Mike Whatley, and the entire NRA Advocacy Team for their hard work and dedication to our industry.

Click here to listen to the webinar recording.

“For nearly a decade, chefs have identified ‘kids nutrition’ in the top 20 food trends annually, underscoring the importance of our youngest patrons and the choices their parents are seeking from restaurants,” said Marvin Irby, Interim President & CEO of the National Restaurant Association. “As the industry continues to learn more about nutrition, we’re proud to offer this updated initiative to reflect the industry’s increasing health standards and ensure that caregivers can be confident Kids LiveWell menu options are delicious and nutritious.”

Restaurant operators with qualifying meals and sides certified by Kids LiveWell are validated by an approved third-party registered dietitian. Menu items that are certified to meet the Kids LiveWell criteria will help caregivers increase a child’s consumption of fruits and vegetables, lean proteins, and low-fat dairy while limiting unhealthy fats, added sugars, and sodium.

Key updates to the Kids LiveWell certifying criteria include:

• Expanding the number of certified menu items: The program now requires that two meals and two sides are certified to meet the Kids LiveWell criteria.
• Adding a default beverage policy: A default beverage policy for the kid’s menu can only include water, low-fat or non-fat milk, or 100% fruit or vegetable juice.
• Eliminating artificial trans fats: Following the FDA ban on artificial trans fats, industrially produced trans fat is no longer allowed in Kids LiveWell meals.
• Removing fat calorie allowance: Along with removing trans fat allowances, the updated program no longer assesses total fat calories, but continues to limit calories from saturated fat.
• Change to added sugar criterion: The new program no longer focuses on calories from total sugar and instead shifts to limits on added sugars.
• Reduced sodium threshold: The new criteria lowers the sodium threshold for both meals and sides in an effort to reduce sodium by 10% in response to public health recommendations.
• Changing the type of dairy products allowed: The new default beverage menu includes 1% and non-fat milk varieties only, following public health recommendations.

“Nutrition science has changed in the last 10 years, so we worked with the Association and restaurant representatives to identify the needed and impactful changes that should be made to bring the program up-to-date,” said Maggie Gentile, MS, RD, LD, vice president of food and nutrition policy at Food Directions. “We also worked in collaboration with public health and consumer advocates to ensure the more stringent program aligns with the latest edition of the USDA and HHS Dietary Guidelines for Americans. The food-based requirements and nutrient thresholds also closely align with the criteria for the Better Business Bureau’s (BBB) Children’s Food and Beverage Advertising Initiative (CFBAI).”

Nearly 13,000 restaurants across the country have Kids LiveWell approved menu items. Restaurants with meals and sides certified in the original program must have any existing meals re-certified by Jan. 1, 2022.

“The Association is invested in helping the industry find solutions to issues related to health and nutrition,” Irby said. “Caregivers and children are more educated than ever about the food they choose for their lifestyles. So, we hope that restaurants of all sizes find value in participating in this free program and look forward to expanding its reach.”

Caregivers with more questions about the Kids LiveWell updates will find answers here and restaurants wanting to find out how to get certified will find all the information they need here.

Praise for Kid LiveWell:

Chef Stephen Bulgarelli, chef culinary officer of Applebee’s Neighborhood Grill + Bar:

“Applebee’s is proud to support the National Restaurant Association and Kids LiveWell 2.0. All Applebee’s menus include meals that fall within the Association’s guidelines to provide healthy options for parents to choose for their children.”

Kathy Higgins, chief executive officer, Alliance for a Healthier Generation:

“The Alliance for a Healthier Generation applauds the National Restaurant Association and its members for expanding the Kids LiveWell program and taking additional steps to increase the visibility of ‘better-for-you’ options. This type of commitment and effort is critical to making the systemic shifts that are needed to ensure that children and families have a chance to live healthier lives.”

Sara Ribakove, senior policy associate, Center for Science in the Public Interest:

“Families want healthier options for their kids when they dine out. The updates to the Kids LiveWell program can help to drive change towards healthier kids’ meals and increase awareness of healthy options at a greater number of restaurants. The shift to requiring healthier default beverages for all participating restaurants and strengthening the nutrition criteria reflects progress towards creating a healthier food environment for kids.”

Nancy E. Roman, president and CEO of Partnership for a Healthier America:

“Covid-19 underscored the importance of food in building health. So, there is no better time for the restaurant industry to focus on the health of their offerings. Refreshing the Kids LiveWell program is an important step."

Steve Sturm, executive chef, Firebirds Wood Fired Grill:

“We are proud to be a part of the Kids LiveWell story and their continued effort in prompting healthier menu options that ultimately help parents feel confident in their kids’ food choices.”

Ype Von Hengst, vice president, culinary operations, Silver Diner:

“Silver Diner and its brands have been long-time supporters of healthy eating for kids and families. The restaurant has served as a national model for innovation in healthy eating. Throughout our initiatives, we have been supporters of the National Restaurant Association’s Kids LiveWell program. We’re excited to continue to support this worthwhile program.”

Margo G. Wootan, president, MXG Strategies; adjunct faculty, American University, College of Arts and Sciences, Department of Health Studies:

“We hope the updated Kids LiveWell criteria will encourage all restaurants to make healthier beverages the default with children’s meals and drop soda, lemonade and other sugary drinks from kids’ menus. The Kids LiveWell updates acknowledge that a healthy meal should include a vegetable or fruit and that 1% or fat-free milk should replace varieties high in saturated fat (i.e., whole and 2%).

“A national poll reveals that over 80% of parents want restaurants to increase healthy options and decrease unhealthy items on children’s menus. The experiences of restaurants that have shifted to healthier food and beverage items show that families want healthy options for their kids and that they’re good for business.

“We’re pleased that the National Restaurant Association has updated its Kids LiveWell program. Since children get a quarter of their calories from eating out, all restaurants should make the children’s menu healthy to support children and their parents.”

• Enhanced loan amounts up to $2 million, allowing businesses to reapply for more funds.
• Expanded use of funds, including pre-payment of commercial and/or credit card debt.
• Improved eligibility rules for affiliated businesses that mirror the Paycheck Protection Program.

Please see the three linked EIDL resources below and let us know if you have any questions.

EIDL Enhancement Fact Sheet – More Funds and More Flexibility

On-Demand SBA Webinar – Restaurants Interested in Accessing EIDL Program

Article – Restaurants Now Have Additional EIDL Options

We have contacted the Centers for Disease Control and Prevention (CDC) and they informed us that many restaurant workers would fit the criteria based on the below information and their original guidance, see  here. The CDC recently published new information onWorkers Who May Get Pfizer-BioNTech Booster Shots | CDC. While restaurant workers are not specifically listed as an occupation of increased exposure, they do list food and agricultural workers and in our conversations with CDC, they have expressed that restaurant workers would fit the criteria.  

Additionally, a recent CDC presentation explained that higher-risk workers included people who interacted within 6 feet of other people. CDC spokeswoman Kristen Nordlund said people would self-identify as qualifying for a booster under the new guidelines.

Our message is clear. Restaurant workers are at high risk because their occupations involve:

• Working in indoor spaces outside their homes,
• Close proximity (<6 feet) to other people, and
• Unavoidable frequent interactions with potentially unvaccinated people.

Therefore, the we encourage all restaurant employees whose positions meet these criteria and currently qualify for these booster doses (are at least six months after completion of a Pfizer-BioNTech initial series) to seek a booster vaccine.

Consult with your doctor as well to ensure your individual medical situation and risk level are considered.

But the bill is lacking for us in two significant areas… it does not replenish the Restaurant Revitalization Fund (RRF), and it raises taxes on small businesses at a time when our industry truly cannot bear more financial strain.  We have produced a 5-minute explainer video that walks through how the tax changes would affect your bottom line.

Earlier this week, the National Restaurant Association released a new survey of the state of the industry. The conclusions are bleak – deteriorating business conditions are impacting operators’ outlook to the point that they state a recovery from the pandemic will be prolonged well into 2022. Overall, a majority of full-service and limited-service operators say business conditions are worse now than three months ago. These findings come on the heels of rising food and supply costs, a well-documented labor shortage, nearly $300 billion in lost sales, and debilitating debt that continues to mount.

We released a public letter to congressional leaders sharing the results of our findings and our strong objections to the Build Back Better Act as written. 

Congress can change the bill to help our industry – but we need to be vocal, and we need to act now. The National Restaurant Association and our state partners are engaging policymakers to press for a solution that will improve, not jeopardize, the efforts of restaurant owners to keep their doors open.

We urge you to take a moment, review the materials, and lend your voice to the cause.

Here are the COVID-19 Restaurant Impact Survey results for South Carolina from September 2021:

Restaurant Business Conditions

• Although restaurant sales improved from the early months of the pandemic, business conditions remain far from normal for many South Carolina restaurants. Overall, 62% of South Carolina operators say their total sales volume in August 2021 was higher than it was in August 2020. Only 24% of operators reported a same-store sales decline between August 2020 and August 2021.
• However, when compared with August 2019 pre-pandemic levels, a majority of operators say their sales were lower in August 2021. 51% of South Carolina operators say their sales volume in August 2021 was lower than it was in August 2019. Only 30% reported higher sales compared to August 2019.
• Business conditions deteriorated in recent months, according to restaurant operators. 52% of South Carolina operators say business conditions for their restaurant are worse now than they were 3 months ago. Only 10% say business conditions improved during the last 3 months.
• The delta variant negatively impacted the restaurant industry in recent weeks. 74% of operators say their restaurant 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 delta variant.
• Most South Carolina restaurant operators do not expect a return to normal business conditions any time soon. 22% of operators think it will be 7-12 months before business conditions return to normal for their restaurant, while 28% think it will be more than a year. An additional 26% of operators say business conditions will never return to normal for their restaurant.

Restaurant Jobs

• Although the industry added back many of the jobs lost during the pandemic, a majority of restaurants remain understaffed. 69% of South Carolina operators say their restaurant currently does not have enough employees to support its existing customer demand.
• Among restaurants that are currently understaffed, 72% of operators say their restaurant is more than 10% below necessary staffing levels. 32% say they are currently more than 20% below necessary staffing levels.

Costs Are Up – Profitability is Down

• 87% of operators say their total food costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 4% say their food costs make up a smaller proportion of sales.
• 76% of operators say their total labor costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 6% of operators say their labor costs declined as a percent of sales.
• 59% of operators say their total occupancy costs are higher than they were prior to the COVID-19 outbreak. Only 9% say their total occupancy costs are lower.
• 80% of South Carolina operators say their profit margin is lower than it was prior to the COVID-19 outbreak. Only 8% of operators say their profit margin is higher.
• Many South Carolina operators also reported a deterioration of profitability during the last few months. 62% of operators say their restaurant is less profitable now than it was 3 months ago. Only 5% of operators say their restaurant is more profitable now than it was 3 months ago.

Source: National Restaurant Association, national survey of 4,000 restaurant operators conducted September 7-15, 2021

Bené joined the Association and Foundation during the initial stages of the COVID-19 pandemic and has worked with restaurant owners, manufacturers, and distributors to bolster the industry’s recovery efforts. “We appreciate Tom’s leadership and commitment to the industry during this difficult time,” said Brian Casey, National Restaurant Association Board Chair and owner of the Oak Hill Tavern and the Company Picnic Company. “Tom’s unique industry experience was invaluable in helping the Association and Foundation navigate a once-in-a-lifetime global pandemic.”

During Bené’s tenure, the Association successfully garnered critical protections and support for America’s restaurants and acquired majority ownership of Winsight Holdings, the leading events, expositions, and media provider for the industry.

“I am incredibly proud of the work this team has done and all that we have accomplished together during this incredible time,” said Bené. “Whether it's the significant impact we've made to support the industry through our advocacy efforts; the new governance model that we put in place to drive deeper engagement and more effectiveness; or the restructuring of the organization to meet the changing needs of the industry, our state associations, and our members, it has been a truly collaborative effort. I know the Association and Foundation – and these teams – are well-positioned for continued success.”

Marvin F. Irby, CFO and Chief People Officer, will serve as Interim CEO. Irby has more than 30 years of leadership experience, including executive positions at Kraft Foods, PepsiCo, and Disney. Irby joined the organization in 2010 and has played an integral role in advancing the strategic plans for both the Association and Foundation. 

A task force is being formed to oversee the search for a new President & CEO.

Read the full press release here and the letter to Congress here.

We cover a lot in today's video update, which can be found here. Here are the highlights:

• ERTC: The bipartisan infrastructure framework proposes to end the COVID-related employee retention tax credit (ERTC) for businesses after September 30, 2021. The infrastructure bill would use previously designated ERTC funds for October-December 2021 in order to help offset costs for the new spending package. Eligibility for the ongoing calendar quarter (July – September 2021) would not be affected, and ERTC is currently scheduled to expire at the end of 2021.
• PPP Loan Forgiveness: Restaurants with a Paycheck Protection Program (PPP) loan under $150,000 can now apply for forgiveness through a new Web Portal (https://forgiveness.sba.gov), beginning August 4th. The SBA says this application can take less than 10 minutes to complete, with a customer service line to answer borrower questions.
• RRF Replenishment Act: 224 lawmakers currently support the bipartisan RRF Replenishment Act, which would fund applicants who remain in queue for the grant program. It is important that your Senator or Representative knows how important it is to help the eligible local restaurants whose need is still unmet.
• ENTRÉE Act: Similar to the RRF Replenishment Act, Rep. Luetkemeyer’s (R-MO) introduced the ENTREE Act to fully fund the RRF program. The introduction of this bill shows that there continues to be strong bipartisan support for restaurants. There is an opportunity to find a path to consensus on how to ensure that the SBA is able to complete their mission by funding the nearly 200,000 applications left pending when the RRF closed.

• Earlier today, New York City Mayor Bill de Blasio announced that in the coming weeks restaurants would be required to ensure that all customers are fully vaccinated prior to dining indoors. It is possible that this precedent setting COVID-19 regulation could be adopted in other jurisdictions.

Click here to watch the 90 Second Update with Sean Kennedy. 

1. SBA is reviewing and processing priority applications first during the initial 21 days (May 3 to May 24), and then all applications will be reviewed. Applicants under review status should not anticipate any outreach from the SBA during this period. 
2. To make any corrections following submission and before award funding, applicants must revisit the application portal or call the support hotline to submit the correction, new documentation, and initiate a restart of the timeline for review. If an applicant initiates a restart, it may take 14 days from the time of resubmission for SBA to finalize review. The SBA will not allow corrections to awards that have been paid to awardees.
3. If the submitted application is successful, all applications enter “IRS verification.” No action is needed from applicants for this process, which simply allows the SBA to validate information. The process may take up to seven days.
4. An additional 4506T form submission is not required after applicant’s sign the application during the e-sign process.
5. If you are entering a state in the address section(s) use the abbreviation in capital letters (e.g., PA, TX, ME, WA, etc.).
6. Applicants can submit a message using the platform inbox for help when on the web portal. 

Over 186K entities applied in the first 36 hours of RRF!

• 186,200 restaurants, bars, and other eligible businesses in all 50 states, D.C., and Puerto Rico.
• 97,600 applications came from restaurants, bars, and other eligible businesses owned and controlled by women (46,400), veterans (4,200), socially and economically disadvantaged individuals (30,800), or some combination of the three (16,200).
• 61,700 applications came from businesses with under $500,000 in annual pre-pandemic revenue, representing some of the smallest restaurants and bars in America.

1. SBA is reviewing and processing priority applications first during the initial 21 days (May 3 to May 24), and then all applications will be reviewed. Applicants under review status should not anticipate any outreach from the SBA during this period. 
2. To make any corrections following submission and before award funding, applicants must revisit the application portal or call the support hotline to submit the correction, new documentation, and initiate a restart of the timeline for review. If an applicant initiates a restart, it may take 14 days from the time of resubmission for SBA to finalize review. The SBA will not allow corrections to awards that have been paid to awardees.
3. If the submitted application is successful, all applications enter “IRS verification.” No action is needed from applicants for this process, which simply allows the SBA to validate information. The process may take up to seven days.
4. An additional 4506T form submission is not required after applicant’s sign the application during the e-sign process.
5. If you are entering a state in the address section(s) use the abbreviation in capital letters (e.g., PA, TX, ME, WA, etc.).
6. Applicants can submit a message using the platform inbox for help when on the web portal. 

Over 186K entities applied in the first 36 hours of RRF!

• 186,200 restaurants, bars, and other eligible businesses in all 50 states, D.C., and Puerto Rico.
• 97,600 applications came from restaurants, bars, and other eligible businesses owned and controlled by women (46,400), veterans (4,200), socially and economically disadvantaged individuals (30,800), or some combination of the three (16,200).
• 61,700 applications came from businesses with under $500,000 in annual pre-pandemic revenue, representing some of the smallest restaurants and bars in America.

Washington, D.C. (May 4, 2021) – Today, the National Restaurant Association and ServSafe® released an updated version of its COVID-19 Operating Guidance incorporating new information on best practices to train staff on risk mitigation regarding the spread of COVID-19. The Operating Guidance continues to incorporate the latest information from sources including the Centers for Disease Control and Prevention (CDC), U.S. Food & Drug Administration (FDA), Environmental Protection Agency (EPA), Occupational Safety and Health Administration (OSHA), and the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).

Key updates on employee training and education include:

• Guidance on effective education methods for training employees on COVID-19 policies.
• Details on key topics to include in employee training materials such as the difference between cleaning and disinfecting as well as OSHA Hazard Communication Standards.
• Information on effective communication channels for employees to express concerns, ask questions, make comments, and provide feedback.

“Given the unprecedented nature of the COVID-19 pandemic and the evolution of learnings shared by the scientific community and governing bodies, it is important that operators prioritize staff training and risk mitigation regarding the spread of COVID-19,” said Larry Lynch, senior vice president of Science and Industry for the National Restaurant Association. “The foodservice industry is a leader in adapting and training employees in best practices for food safety and this COVID-19 training is an extension of those best practices. It’s essential that owners and operators operationalize this training and revisit it with staff frequently.”

This is the fifth version of the COVID-19 Operating Guidance since it was released by the Association and ServSafe in April 2020. In addition, ServSafe has made available free training videos to provide hands-on, educational resources on COVID-19 best practices for restaurant and foodservice workers covering topics such as conflict de-escalation, safe reopening, takeout and delivery.

Download the latest COVID-19 Operating Guidance here.

Washington, D.C. (May 3, 2021) – Today, the $28.6 billion Restaurant Revitalization Fund (RRF) began accepting grant applications. Tom Bené, President & CEO of the National Restaurant Association released the following statement about the launch of the federal relief program:

“Today’s launch of the Restaurant Revitalization Fund provides long-awaited hope for tens of thousands of restaurants who are on a long path to recovery. The U.S. Small Business Administration (SBA) has done admirable work in creating a totally new relief program in just two months, and we appreciate our strong partnership with them.

“The question on the minds of many is what happens when applications outpace the available funds. Restaurants are operating in an uncertain environment, with continued needs to restore customer confidence in their safety and to bring workers back into the economy.  We will continue to work with policymakers to secure a comprehensive set of solutions, including additional funding for the RRF.”

The restaurant industry has been the hardest hit during the pandemic. Between March 2020 and April 2021, restaurant and foodservice sales were down $280 billion from expected levels and 110,000 restaurants have closed permanently or long-term. For nearly 15 months, securing industry-specific recovery grants has been the primary goal of the National Restaurant Association.

Because funds are limited, the Association encourages all eligible applicants to apply as soon as possible. While priority groups will have 21 days of priority access, applications from all eligible applicants will not be ruled ineligible if they apply during the prioritization period. The SBA will coordinate the time of submission to determine the order of grant distribution.

Resources for operators:

• SBA Application Portal
• Updated Association FAQ document
• Step-by-Step Guide to Applying for the RRF
• SBA video tour of the Application Portal

Yesterday marked one year since the first states began to shut down restaurants. This week, we look back at our wins on behalf of the industry.

Accomplished with the support of our state partners and grassroots members, these efforts have kept our losses from being far worse. While the Restaurant Revitalization Fund—which is based on the original plan we sent to Congress last March—will achieve the most relief for the industry, the cumulative effect of all the Association initiatives and accomplishments in the last year helped (and continue to help) the industry on its path to recovery.

Here’s a reminder of some of our top accomplishments:

• Conceiving the $28.6B Restaurant Revitalization Fund. This fund will help the hardest hit small and medium-sized restaurants kickstart recovery.
• Securing access to $72+ billion in Paycheck Protection Program (PPP) loans. The Association twice worked with Congress to refine this program to meet the specific needs of restaurants.
• Establishing a $21.5 million Restaurant Employee Relief Fund. Our Foundation’s fundraising provided $500 grants to more than 43,000 restaurant workers.
• Creating the first COVID-19 Operating Guidance for all restaurants. This comprehensive, science-based guide from ServSafe helps restaurants train staff to serve food safely and mitigate risk during COVID-19.
• Ordering up cocktails to-go. The Association and state restaurant associations partnered to secure this lifeline in 32 states and D.C. – the most significant change to alcohol laws since Prohibition.
• Expanding tax credits that support employment. Thanks to a change pursued by the Association, restaurants can now receive up to $19,000 per eligible employee in Employee Retention Tax Credits across 2020 and 2021.

The media is already talking about these accomplishments. Don’t miss QSR magazine’s excellent article.

We asked you to lend your voice – and were overwhelmed with the response. You joined us on social media, on phone calls, in Zoom rooms, and in meetings with our state restaurant associations. Lawmakers from across the political spectrum heard us and worked to provide relief.

Today, the House and Senate will send to the White House the American Rescue Plan, which contains $28.6 billion for a new “Restaurant Revitalization Fund”. We’ve prepared an overview on how the Fund works, which can be found here.

This Monday at 1pm EST, we will host a national webinar on what you need to know about the RRF and we’ll answer your questions. Click here for more details and to register.

Our goal here in Washington is to prepare and educate you so that you understand the program, how it works, and how you can apply. Expect to hear a lot more from us and our state association partners in the coming weeks on this front. Thank you for your ongoing engagement and support!

“The restaurant industry emerged as the bill’s biggest private-sector winner. The package establishes a $25 billion ‘revitalization fund’ for restaurants that will dole out grants to help them cover pandemic-related revenue losses, with businesses eligible for up to $5 million each.

“Sean Kennedy, the National Restaurant Association’s vice president for public affairs, called the fund the ‘the culmination of a one-year effort’ to secure a dedicated pot of money for the sector. But it has racked up a series of smaller lobbying victories in pandemic relief measures, including a carve-out in the Payroll Protection Program that granted restaurants a higher loan limit than other businesses.

“In the latest bill, the restaurant group helped push for the expansion of a tax credit for companies that keep workers on their payrolls. And they lobbied against a federal minimum wage increase many Democrats wanted to include, endorsing the package once they were confident it would not include such a hike or end the tipped minimum wage.

“Kennedy said restaurants deserve the special attention. ‘No industry has lost more jobs and more revenue than restaurants,’ he said, pegging the sector’s revenue losses at $255 billion. ‘We were the first industry to be shut down, we’ll be the last to reopen, and we have a very long road to recovery in front of us.’

“The restaurant lobby activated its nationwide grass-roots network to push for final passage of the package, calling on restaurateurs to press their own lawmakers on the urgency of the need for aid. ‘Every member of Congress has their favorite place when they get home from Washington,’ Kennedy said. ‘Communities of every size have lost a beloved restaurant. Members see that, and we work off of that.’”

Click here to read the full article.

“The Restaurant Revitalization Fund represents the culmination of a year’s worth of advocacy and development toward an industry-specific solution,” said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. “Prompt passage and implementation will provide new relief opportunities for some of the nation’s hardest-hit restaurants and communities. Help for restaurants is help for employees and communities, and a signal that our country is one step closer to turning a corner.”

Highlights of the survey findings in the letter include:

• Consumer spending in restaurants remained well below pre-pandemic levels in January. Overall, 77% of restaurant operators say their total dollar sales volume in January was lower than it was in January 2020.
• From November 2020 to January 2021, nearly 450,000 restaurant jobs were lost, representing about 10% of the total jobs recovered during the first six months after the spring shutdowns. Eighty percent of operators say their current staffing level is lower than what it would normally be in the absence of COVID-19.
• Looking farther down the road, most restaurant operators do not expect a return to normal business conditions any time soon. Thirty-two percent of operators think it will be 7-12 months before business conditions return to normal for their restaurant, while 29% think it will be more than a year. An additional 10% of operators say business conditions will never return to normal for their restaurant.
• Fourteen percent of restaurant operators say they will ‘probably’ or ‘definitely’ be closed within 3 months if there are no additional relief packages from the federal government.

While many other industries have moved into a recovery phase, the restaurant industry ended last year in a double-dip recession and with 2.5 million fewer jobs. Between March 2020 and January 2021, restaurant and foodservice sales were down $255 billion from expected levels.

“Demand for relief will far outpace the $25 billion in funding,” Kennedy concluded in the letter. “But this is an incredible step forward and we look forward to working with you to see this program launch successfully to rescue countless industry jobs nationwide.”

Today’s letter was the sixth update the Association has sent to Congressional leadership to apprise them of the state of the restaurant industry. Read the full letter here.

A summary of the survey of 3,000 restaurant operators, conducted by the National Restaurant Association Research Group from February 2-10, is available here.

Click here to view the full infographic.

Restaurant Business Conditions

• Consumer spending in South Carolina restaurants remained well below pre-pandemic levels in January. Overall, 78% of restaurant operators say their total dollar sales volume in January was lower than it was in January 2020. Only 14% of operators reported higher sales in January. Overall, sales were down 25% between January 2020 and January 2021.
• With on-premises capacity limited during the last several months, restaurant operators had no choice but to focus on their off-premises business. While many restaurants saw off-premises sales rise, it wasn’t nearly enough to make up for their lost on-premises sales. Among South Carolina operators who say their off-premises business increased compared to pre-COVID levels, 71% say their higher off-premises sales have made up less than 30% of their lost on-premises sales.
• Most restaurant operators do not expect business conditions to improve during the next several weeks. Only 25% of South Carolina operators expect their sales in February and March to be higher than it was in January. Thirty-five percent of operators think their sales will decline in February and March from January's levels.
• Looking further down the road, most restaurant operators do not expect a return to normal business conditions any time soon. Thirty percent of operators think it will be 7-12 months before business conditions return to normal for their restaurant, while 24% think it will be more than a year. An additional 9% of operators say business conditions will never return to normal for their restaurant.
• For many restaurants, additional actions from the federal government will be critical to their business surviving beyond a few weeks. Eleven percent of South Carolina operators say they will 'probably' or 'definitely' be closed within 3 months if there are no additional relief packages from the federal government.

Restaurant Jobs

• Deteriorating business conditions led to additional job losses in recent weeks, with 22% of South Carolina operators saying they laid off or furloughed employees in December or January.
• Although many restaurants added back employees after the initial lockdowns, overall staffing levels remain well below normal. Sixty-nine percent of South Carolina operators say their current staffing level is lower than what it would normally be in the absence of COVID-19. Thirty percent of operators are currently more than 20% below normal staffing levels.
• With future business conditions remaining uncertain, most operators do not plan to expand payrolls in the near term. Only 19% of South Carolina operators expect their restaurant’s staffing levels to be higher in February and March than it was in January. Ten percent of operators expect their staffing levels to decline in February and March.

Charitable Activities

• Even in the midst of the most challenging business conditions in history, the philanthropic spirit of the restaurant industry remained intact. Seventy-six percent of South Carolina operators say their restaurant business made a charitable contribution (such as cash, food, space, in-kind or volunteering) since the COVID-19 outbreak in March 2020. 

Source: National Restaurant Association, national survey of 3,000 restaurant operators conducted February 2-10, 2021

As you likely saw, the House passed the American Rescue Plan Act which includes both the $25 billion Restaurant Revitalization Fund and the Raise the Wage Act (even though the Senate Parliamentarian has ruled it cannot remain in if the Senate considers the legislation under reconciliation rules).

Below you’ll find Sean’s press statement for your reference.  Please let us know if you have any questions.

“Tonight’s House passage of the American Rescue Plan Act means the $25 billion Restaurant Revitalization Fund is one step closer to being a reality. It’s a huge win for struggling restaurants in every community – and one that we have been focused on from the beginning of the pandemic.”

“The inclusion of the Raise the Wage Act will needlessly harm tipped servers and restaurants when they are most at risk of closing their doors for good. We need an agreement that supports the return of the restaurant jobs needed for local economies to recover from the pandemic, but that doesn’t penalize our workers or slow our rebuilding. We will continue to work with Congress to find this solution.”  -- Sean Kennedy, Executive VP, Public Affairs, National Restaurant Association

Click here to view the letter.

The $25 billion restaurant grant program contained in the small business title of the budget reconciliation recognizes the unique business models of restaurants and would help sustain small restaurants and stimulate recovery. Importantly, the provision sets aside $5 billion specifically for small restaurants, bars, and tasting rooms, making less than $500,000 in gross receipts in 2019. And prioritizes the award of grants to eligible entities that are owned by women or Veterans or are socially and economically disadvantaged businesses.

In addition to the letter, Sean Kennedy, Executive Vice President of Public Affairs for the National Restaurant Association said: “Majority Leader Schumer and Speaker Pelosi have taken a strong step forward with formally unveiling legislative text to provide a $25 billion restaurant recovery program in their proposed COVID stimulus bill. This has been a key part of the range of recovery components we have sought from our federal, state, and local governments. Restaurants are going to be on the verge of closing for much of 2021 – the Schumer/Pelosi proposal will be a strong backstop to minimize lost restaurants, jobs, and revenue for local communities.”

Thank you – for everything you and your members continue to do – to encourage House Members and Senators to oppose including the Raise the Wage Act in their respective budget reconciliation bills.  Thanks to your efforts we have sent over 30,000 emails to the Hill in a little over 24 hours.

We appreciate you continuing to drive grassroots outreach to all House and Senate offices.  Here is the link, again, for use:  Raise the Wage Action Alert.   

Yesterday, ten Senate Republicans met with President Biden, raising their $618B proposal (attached) as a counteroffer to his request for $1.9T in pandemic relief.  While conversations on a bipartisan compromise continue, Senate and House Democrats have moved forward with filing concurrent budget resolutions, which kicks off efforts at compiling a reconciliation bill.

While there are strong arguments (including procedural) for disallowing the Raise the Wage Act from being included into a reconciliation bill, PresidentBiden and Budget Chair Bernie Sanders (D-VT) are pushing for its inclusion.  As a reminder, unlike other bills that take 60 votes for passage, the reconciliation bill requires 51.

A recent USA Today Article highlights the status of discussions. 

We are making progress in encouraging Democratic Senators to push back on including the Raise the Wage Act in a reconciliation bill.  Today, Senator Manchin announced his opposition to taking that approach.  Several other Senators are privately telling us that they are concerned as well.  Typically speaking, Senators don’t like to step out on a ladder alone, in opposing their party.  Our goal, is to assemble a core group who will collectively raise the concerns within the caucus. 

Of course, any grassroots outreach that you can muster is greatly appreciated as well. 

As our primary (but not exclusive) focus is on Democratic Senators who did *not* cosponsor the Raise the Wage Act, we encourage you to set Zoom calls with the Senators, to discuss the issue.  We would be happy to join those meetings. 

We encourage you to continue to also reach out to House Members, Republican Senators, and even Democratic Senators who have already cosponsored the Raise the Wage Act.  It is important to keep the volume up, across the Hill, in opposition to including the legislation within a reconciliation bill.

Again, thank you for all you continue to do.

FOR IMMEDIATE RELEASE

Washington, D.C. (Dec. 21, 2020) – Today, Congress unveiled a $900 billion relief bill to provide short-term economic relief to the country in the face of the coronavirus pandemic. The plan includes several items that will benefit restaurants, most importantly a second round of access to the Paycheck Protection Program (PPP), with unique provisions aimed to assist the restaurant industry, which continues to endure unparalleled job and revenue losses. From the day the industry was shut down by the pandemic, the National Restaurant Association has pressed Congress and the Trump Administration for both long-term and short-term economic support for the restaurant industry, including tailored changes to make PPP a more effective tool for struggling restaurants.

This plan targets restaurant relief with the following provisions:

• Enhanced PPP Loan Size: The PPP provides a business with a forgivable loan based on 2.5 times its monthly payroll costs. Restaurants, however, can seek forgivable loans based on 3.5 times monthly payroll costs.

• Enhanced Access to PPP: Companies that employ a total of 300 or more employees at all locations (combined) are deemed ineligible for the PPP. Today’s bipartisan plan reflects the reality that many mid-sized and larger restaurant groups are on the verge of bankruptcy and allows restaurants to qualify for PPP as long as they do not employ more than 300 employees at each physical location.

The National Restaurant Association sought other provisions that will benefit restaurants which were included in the bill including the deductibility of business expenses paid with PPP loans, enhancement of the Employee Retention Tax Credit (ERTC), extension of the augmented Work Opportunity Tax Credit (WOTC), and increased tax deduction for business meals.

“The action taken by Congress today will keep tens of thousands of restaurants from closing in the coming months,” said Tom Bené, President & CEO of the National Restaurant Association. “A second round of PPP, combined with unique enhancements for the restaurant sector, will provide critical access to capital. Restaurant operators and their employees are dedicated to serving their communities, and today’s bipartisan agreement will give them the opportunity to do that through the holidays. However, the long-term economic challenges facing independent, franchise, and chain restaurants will not end with the new year, and we will continue to press federal and state leaders for the support that will put us on the road to recovery.” 

“Restaurants have waited months for a comprehensive relief bill that reflects the magnitude of this crisis,” said Sean Kennedy, Executive Vice President of Public Affairs for the Association. “Today’s bipartisan action is a ‘down payment’ that recognizes the unique damage the pandemic is inflicting on our industry. Congress heard from us and hundreds of thousands of our restaurant members about basic steps to improve PPP for our industry—and they listened. We appreciate Senate and House Leadership, key committee chairs and ranking members, and the group of moderates, each of whom played a critical role in this process. There is much more to be accomplished, and we will continue to press in 2021 at the federal, state, and local level on behalf of the industry, our employees, and our customers.”

Find the full National Restaurant Association Blueprint for Restaurant Revival here.

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About the National Restaurant Association

Founded in 1919, the National Restaurant Association is the leading business association for the restaurant industry, which comprises 1 million restaurant and foodservice outlets and a workforce of 15.6 million employees. We represent the industry in Washington, D.C., and advocate on its behalf. We sponsor the industry's largest trade show (National Restaurant Association Show); leading food safety training and certification program (ServSafe); unique career-building high school program (the NRAEF's ProStart). For more information, visit Restaurant.org and find us on Twitter @WeRRestaurants, Facebook and YouTube.

While Senate and House Leadership are negotiating a package separate from the moderate working group, the working group’s decision to sever the framework, an approach originally suggested by Leader McConnell, could help galvanize Congress to pass what they can now, and leave the remaining fight for another day.  On Sunday, House Majority Leader Steny Hoyer (D-MD-5^th District) suggested that Democrats may be willing to accept this severed approach. If his statements represent the Democratic party more broadly, it would be a significant development toward the potential for a COVID relief agreement being reached.

Attached are the latest proposals released tonight.  We are still analyzing the legislative language, particularly the liability pieces.  On the PPP front, restaurants that meet a calendar quarter revenue loss threshold (30%), when comparing a quarter of 2019 to 2020, may be eligible.  Critically, it would restore the tax deductible expenses for PPP recipients. Additional restaurant priorities include adding supplier, PPPE and other costs to the allowable forgivable expenses of PPP loans; an easing of the forgiveness process for certain loans; the allowance of certain 501(c) (6) entities that provide assistance to restaurants to participate; the explicit inclusion of a per location carve out for restaurants; etc.  This is a strong step in the right direction, but we remain vigilant on key aspects we proposed in our December 7 letter (attached).  One of the hurdles to try to overcome is the inclusion of the deductibility aspect, as Secretary Mnuchin is threatening a Presidential veto, if the provision remains.

We will continue to work with all parties – particularly the Administration, the moderate working group and Republican and Democratic Leaders in the House and Senate – as things progress and will provide additional updates in the process.

When Congress created PPP, its intent was for business expenses paid by PPP to be tax deductible.  However, guidance from the IRS says that expenses paid for with a forgiven loan are now taxable.

Take action now to help protect restaurants from surprise tax liabilities! 

Restaurants across the country may soon face surprise tax liability when they can least afford it.  Some restaurants have indicated that this surprise tax liability could be the final factor that causes them to close.  Congress must make business expenses paid for by PPP tax deductible.

Congress needs to hear from restaurants now.  Negotiations are ongoing for this final relief package and time is of the essence! 

Thank you for all that you do for the industry.