New research shows coronavirus continues to devastate restaurant industry
New research from the National Restaurant Association indicates that the restaurant industry has lost $120 billion in sales during the last three months due to the impact of coronavirus in the United States. State mandated stay-at-home policies and forced closures of restaurant dining rooms resulted in losses of $30 billion in March, $50 billion in April, and another $40 billion in May.
The latest operator survey conducted by the NRA drew more than 3,800 responses, illustrating the extensive damage to restaurant businesses since the outbreak began. It found that the restaurant industry, which experienced the most significant sales and job losses of any industry in the country in the first quarter of 2020, expects to lose $240 billion by the year-end.
New report by Oxford Economics with state-by-state TLT revenue breakdown
As a result of the sharp drop in travel demand from COVID-19, state and local tax revenue from hotel operations will drop by $16.8 billion in 2020, according to a new report by Oxford Economics released today by the American Hotel & Lodging Association (AHLA).
Hotels have long served as an economic engine for communities of all sizes, from major cities, to beach resorts, to small towns off the interstate—supporting job creation, small business opportunities and economic activity in states and localities where they operate. Hotels also generate significant tax revenue for states and local governments to fund a wide array of government services. In 2018, the hotel industry directly generated nearly $40 billion in state and local tax revenue across the country.
Oregon is expected to see a total state and local tax revenue loss of $171.7 million. Download the AHLA/Oxford Economic Report of the state-by-state breakdown for tax revenue impact and revenue loss. These tax impacts represent the direct tax revenue decrease from the severe drop in hotel occupancy, including occupancy, sales, and gaming taxes. These figures do not include the potential, significant, knock-on effects on property taxes supported by hotels (nearly $9B).
ORLA Proposes Relief Package to Help Restaurants Save Jobs, Plan for Recovery
WILSONVILLE, OR (April 23, 2020) – No other industry has suffered more employment or sales losses as a result of the coronavirus pandemic than the restaurant and hospitality industry. According to a new national survey conducted by the National Restaurant Association, ninety-four percent of Oregon restaurant operators say they have laid off or furloughed employees since the beginning of the coronavirus outbreak in March. Across the nation, more than 8 million restaurant employees have been laid off or furloughed – about 2 out of every 3 restaurant employees.
“The restaurant industry and its employees have been significantly impacted by this pandemic,” said Jason Brandt, President & CEO, Oregon Restaurant & Lodging Association (ORLA). “Restaurant owners have said existing state and federal relief programs will not enable them to keep their employees on payroll throughout the downturn. We’re calling on our elected leaders to take more action to save jobs and get the industry on track for recovery.”
Oregon findings from the survey include:
ORLA has assembled a list of proposed relief efforts for the Governor and the Legislature to take action on and start the long process of recovery for the restaurant and lodging industry. To date, over 255 Oregon hospitality businesses have signed on to show solidarity for the industry and urge lawmakers into action.
The National Restaurant Association conducted the survey from April 10-16 of more than 6,500 restaurant operators nationwide (owners/operators of eating and drinking places, which employ 12 million out of the total restaurant and foodservice workforce of 15.6 million).
Armed with this new research, the National Restaurant Association has a clearer picture of the severe challenges that lie ahead and has asked Congress for a focused solution on behalf of an industry that has been the hardest hit by the coronavirus mandates. The association submitted a restaurant industry "Blueprint for Recovery" that outlines how Congress can improve the outlook for our survival.
Visit OregonRLA.org to read ORLA’s Proposed Relief Efforts for Oregon’s hospitality industry and access the latest information and resources related to COVID-19.