10,000 of America's restaurants are expected to close in the next three weeks

People walk near a restaurant closed by the pandemic as the global outbreak of the coronavirus disease (COVID-19) continues increase on November 23, 2020 in New York.

(CNN) -- About 17% of America's restaurants have already permanently closed this year, with thousands more on the brink according to a new report.

The National Restaurant Association is publicly pleading with Congress to pass new stimulus to help the industry that has been damaged by the pandemic. The group said Monday that 10,000 restaurants could close in the next three weeks, in addition to the 110,000 that have already shuttered in 2020.

The group released results from a survey of 6,000 restaurant operators, revealing that 87% of full-service restaurants reported an average 36% drop in revenue and 83% expects sales to be "even worse" over the next three months as the virus continues to lash the United States.

"In short, the restaurant industry simply cannot wait for relief any longer," said Sean Kennedy, executive vice president for the group, said in a release. He advocates for a "true compromise" between the competing Democrat and Republican proposals and hopes for a larger stimulus package in 2021 under the incoming Biden administration.

A bipartisan stimulus proposal could be unveiled this week. It's unclear if the extension of the Paycheck Protection Program, which the group wants, will be included.

Another measure, called the Restaurants Act of 2020, was passed by the Democratic-controlled House in October as part of a $2.2 trillion stimulus relief package. But it has not been taken up by the Republican-controlled Senate and is unclear if that will be part of any final relief package.

Restrictions on indoor dining capacity in some US states and other lockdowns stipulations, like curfews, have ravaged the industry. A number of national chains filed for bankruptcy this year, including Ruby Tuesday's and California Pizza Kitchen, which has resulted in the closure of hundreds of locations.

This week, a Los Angeles business owner who was forced to shut down her restaurant said she felt restaurants and other small businesses are being unfairly targeted by California's new and stricter stay-at-home order.

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(2) comments


Government shutdowns, are putting small businesses out of business.

Kenny Rogers

You are 100% accurate about that. Just look at how badly Gov. Brown has damaged local businesses and restaurants in our state. There is a complete and utter lack of sane leadership in this state, and many people are paying the price. Apparently it's just fine to go riot and protest in the streets with people on top of each other, but a restaurant cannot take the necessary steps and precautions to run it's own business during these times? It literally makes no sense whatsoever, and I am perplexed at how these people continue getting elected. Lowe's, Home Depot, Walmart etc. are able to be open with a high volume of people, with tight and narrow aisles. But restaurants cannot have dine-in at a limited capacity, and gyms cannot operate either? A complete lack of transparency, consistency, and leadership.

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