More than $1.53 billion in unfunded Pennsylvania Restaurant Revitalization Fund applications leave local small business owners in limbo
[Harrisburg, Pa.] (September 2, 2021) – The Pennsylvania Restaurant & Lodging Association, the National Restaurant Association, and 50 other state restaurant association partners sent a letter to Congressional leadership sharing new national consumer confidence survey findings and urging swift replenishment of the Restaurant Revitalization Fund (RRF). Pennsylvania has more than 6,400 pending applications that total more than $1.53 billion in stabilization funding that would be addressed by the $60 billion proposed replenishment bills.
The letter urges Congress to complete the mission of the RRF and provide adequate funds to replenish the program and offer relief for the applications still pending.
“There are thousands of Pennsylvania small business owners stuck in limbo waiting to find out if Congress will act to provide the stability they need to make it through this new pandemic threat and into the future,” said John Longstreet, president & CEO of the Pennsylvania Restaurant & Lodging Association. “The rise of coronavirus variants like delta threaten to push these restaurants closer to permanently closing their doors. It’s time for Congress to step in and fulfill the promise of the RRF.”
“When we initially received word from the SBA that we were awarded an RRF grant. We thought the RRF would be the key to making us whole again and that things would finally get back to normal,” said Renee Vichie, owner of Waterfall Catering in Pittsburgh. “Instead, a lawsuit with which we had nothing to do, we were no longer getting what we had been promised. Congress must live up to its side of the deal and fulfill the obligation the government made to restaurants, bars and other food and beverage businesses. It’s time to replenish the RRF.”
“Being eligible for the RRF grant, I planned to hire back my full staff at VUE on 50, make repairs to equipment that had occurred after being closed for 15+ months and pay back debt incurred to keep the venue ‘operational’ even though we were mandated to be closed. After receiving notification that I was
awarded the grant, I did exactly that – knowing that I would receive the funds in a matter of 5-7 business days. To then get notified by email, one month later, than the funds had been rescinded, left me in a financial hole far worse that I was prior. The Delta Variant has since caused additional groups to cancel their Fall events leaving my business in dire straits. I desperately need the RRF funds I was promised,”
said Clayre Cardi, owner of VUE on 50 in Philadelphia.
The National Restaurant Association survey found that nationally a majority of consumers have already changed their dining behavior, which is beginning to put acute pressure back on the restaurant industry. This 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.
Specifically, the survey found:
6 in 10 adults changed their restaurant use due to the rise in the delta variant
19% of adults have stopped going out to restaurants
9% have cancelled existing plans to go out to a restaurant in recent weeks
37% have ordered takeout or delivery instead of going out to a restaurant
19% have chosen to sit outside instead of inside when going out to a restaurant “For an industry that requires a ‘full house’ every evening to make a profit, this is a dangerous trend,”
said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. “These changes indicate declining consumer confidence that will make it more difficult for most restaurant owners to maintain their delicate financial stability.”
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About the Pennsylvania Restaurant & Lodging Association
The PRLA strives to promote, protect, and improve the hospitality and tourism industries in the Commonwealth of
Pennsylvania. PRLA conveys the unified voice of these industries to the Commonwealth’s citizenry and elected
officials. For more information, visit prla.org and find us on Twitter, Facebook, Instagram, and YouTube.
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