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Restaurants need federal funds to stay afloat as pandemic continues

1/31/2022

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Click Here to Access Article
By Lezla Gooden
Eyewitness News 3
​
HARTFORD, CT (WFSB) - The National Restaurant Association is calling for Congress to renew federal funds created to help restaurants and bars struggling during the COVID-19 pandemic.Officials in Connecticut have sounded the alarm and said they are barely holding on.
“We are working hard to stay open and like the only word I can think of why we are still here is love,” said Dino Cialfi, owner of Peppercorn’s Grill in Hartford. “Lots of love. From customers and us giving back and forth.”
Peppercorn’s Grill has been feeding Hartford for three decades. The Italian restaurant said COVID is its biggest battle yet.
“I won’t go down without a big, big fight,” Cialfi said.
Cialfi said the business was hoping to get money from the $28.6 billion Restaurant Revitalization Fund that was made available in 2021.
“We got on that computer the moment it opened, and we were bumped off for both restaurants because they had run out of funds that quickly,” he said.
According to a new survey released this week by the National Restaurant Association, 50 percent of restaurants that did not receive RRF grants said it was unlikely they would stay in business beyond the pandemic without a grant.
“On the surface, it was great,” said Scott Dolch, president and CEO of the Connecticut Restaurant Association. “Sixteen hundred Connecticut restaurants got funding for losses and that’s the good side. About $300 million. But the problem was over 2,000 were eligible and got nothing. The federal government has to finish the job and help those 2,000.”
The Connecticut Restaurant Association said that state funding is still available for businesses, but distributing those funds is not simple.
“I think the challenge right now is that the money lies within the cities and towns and we have to think of creative ways that the cities and towns are using their American Rescue Plan dollars to help our industry,” Dolch said.
The Connecticut Restaurant Association said unless Congress approves funds, hundreds of restaurants could close their doors in the next couple of weeks.

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National Poll: 50 Percent of Restaurants May Fail If They Don't Get Relief Funds

1/26/2022

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By Susan Dunne
Hartford Courant
January 24, 2022

The omicron variant has had a devastating impact on the dining industry, especially restaurants passed over last year by the Restaurant Revitalization Fund, the National Restaurant Association (NRA) reports.
In a Zoom news conference on Monday, the NRA announced that a poll of U.S. restaurateurs found that almost half that didn’t get RRF funding in 2021 say they likely won’t survive unless the fund is replenished. This could result in the loss of 1.6 million jobs nationwide, NRA spokesman Sean Kennedy said.
“The Restaurant Revitalization Fund has been a critical lifeline for so many but far more remain on the sidelines,” said Kennedy. “Omicron definitely has had a negative impact on restaurant operations. Effectively, the restaurant recovery continues to move in reverse.”
The poll, completed by 4,200 restaurateurs from across the nation between Jan. 16 to 18, found 88% of restaurants saw a decline in indoor dining due to the omicron variant; 76% report business is worse now than it was three months ago, and 74% report their restaurant is less profitable now than pre-pandemic. Also, 94% said a grant would let them retain or hire back employees.

Connecticut-specific statistics were not available Monday.
Kennedy said the RRF funding last year saved more than 900,000 jobs nationwide and helped 96 percent of grant recipients stay in business.


Kennedy cited the industry’s average 3 to 5% percent profit margin, and the fact that before the pandemic, the average restaurant had just 16 days’ cash on hand in case of emergency. “The needs of the restaurant industry have never been more dire and never been more clear right now,” he said.
At the news conference, Kennedy said NRA wrote to Congress to encourage the replenishment of the fund. “The timing of this is critical. Congress is facing a Feb. 18 deadline to pass a government spending bill,” he said.
Hudson Riehle, a research specialist with the NRA, stressed that the dining industry is the nation’s second-largest private-sector employer, after health care.
“There are too many restaurants that are jeopardized right now. … Too many jobs on the line. Failure is truly not an option,” Riehle said. “Every light for our industry is blinking red.”
Kennedy and Riehle were joined by two restaurant owners, including Tricia Martin of TJ’s Burritos in East Granby and a pancake-house proprietor from Plano, Texas.
Martin’s restaurant was not qualified for a PPP loan because it opened in 2021 and was passed over for a RRF grant. She said TJ’s is “not any better off now than we were three months ago.”
The timing of the omicron surge was a blow, she said.

“When we had outdoor dining, and they eased up on the restrictions on seating capacity, all of a sudden the summer was great,” she said. “Then omicron hit when it got cold and we lost the whole patio at the same time. We were able to keep everyone on, but we had to reduce hours.”
Martin said consumer confidence took a hit, too. “Our town didn’t have an indoor mask mandate but other towns did and that made people scared, not comfortable. Our foot traffic decreased,” she said.
Martin described TJ’s earnings as “flat,” due to increases in food, supplies and the cost of wages. She said the restaurant hopes to add more seating this year, and is hoping for an RRF grant to help them.
The $28.6 billion RRF was part of the American Rescue Plan. Nationwide, 278,304 restaurants applied for a total of $72,233,280,031, and 101,004 were granted a total of $28,574,979,472, according to the Small Business Administration. In Connecticut, 3,369 Connecticut restaurants applied for a total of $790,818,094 in grants from the federal fund. A total of 1,303 received funding, totaling $301,164,069.
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Restaurants in Hartford React to City's Indoor Mask Mandate

1/5/2022

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Eyewitness News 3
​By Ayah Galal
HARTFORD, CT (WFSB) – As the positivity rate continues to climb in Connecticut, Hartford has reinstated its indoor mask mandate.
This comes as many restaurants in the capital city have already been struggling amid the pandemic.
Banh Meee opened its Ann Uccello Street restaurant in Hartford just weeks before the pandemic hit in 2020.
“I think they have the best sandwich in the area,” said Ryan Byrnes of West Hartford. “I think that’s one thing we’re missing in greater Hartford is great sandwiches, so I’ll recommend the Banh Meee down here.”
While business has gone up a bit in the last year, owner G Tran says the times are still tough.
“Dine-in business is still pretty quiet but take-out business is pretty flat,” Tran said.
Before COVID, Tran says about 50 percent of business was takeout.
Now, about 90 percent is take-out and 10 percent of customers dine in.
This week, Hartford reinstated its indoor mask mandate.
“I think it’ll impact business a little bit,” Tran said.

Restaurant owners think more people will return to takeout.
“I understand it. Obviously, it’s a big spike right now,” Byrnes said.
“When you turn the page into January and February, it’s really about survival for these restaurants,” said Scott Dolch, Executive Director of the Connecticut Restaurant Association.
Dolch says while he hopes the mandate doesn’t negatively impact restaurants, Hartford has been dealt a tough hand.
“I love the city of Hartford and I don’t want to have to see any more businesses close their doors. I know the mayor feels the same way. We’re just trying to find the best solutions to get through it,” Dolch said.
Regular customers say in the meantime, they’ll continue doing their best to support local restaurants.
“It’s absolutely important. I mean it’s part of social contract,” said Sal Lena of Higganum.
Hartford’s indoor mask mandate will continue through the end of January.
Doctors say case numbers are expected to start decreasing by early February.

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