Thousands Of U.S. Businesses That Were Shut Down Will Be Closed Permanently
We are already starting to see some high profile companies move toward bankruptcy, but the real story is what is happening to thousands upon thousands of small and mid-size businesses because of the lockdowns. Many of them were barely surviving even before this pandemic, and now these lockdowns have delivered a death blow.
The restaurant industry is a perfect example. Prior to the pandemic, there were more than a million restaurants in the United States, and about half of them were independent. Those independent restaurants employed approximately 11 million workers, and now the vast majority of those workers have been laid off.
Once the lockdowns are over, it would be wonderful if all of those independent restaurants would spring back to life, but the results of a recent survey suggest that simply is not going to happen. In fact, that survey found that 28 percent of all independent restaurants are probably not going to survive if the lockdowns last for another month…
A survey released Thursday by the James Beard Association found independent restaurants laid off 91% of their hourly employees and nearly 70% of salaried employees as of April 13 – double-digit increases in both categories since March. The poll of 1,400 small and independent restaurants found 38% of have closed temporarily or permanently, and 77% have seen their sales drop in half or worse.
Perhaps most troubling: 28% of restaurants said they don’t believe they can survive another month of closure, and only 1 out of 5 are certain they can sustain their businesses until normal operations can resume. 28 percent of 500,000 is 140,000, and so if these lockdowns are not lifted soon we could be facing a scenario is which tens of thousands of independent restaurants are lost forever.
https://endtimeheadlines.org
