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Is the [US] Government Just Going to Watch the Restaurant Industry Die?
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Very few businesses in the world have the same effect as banks failing. It's a dumb comparison. The US employs nearly 12 million people in food service though. It's not negligible
Indoor dining has been allowed in the rest of state since June. Like Cuomo said it's not all or nothing. We can reopen smartly, and New York has.
This is why I've been trying to get takeout as much as possible. If you can afford to do so, I'd encourage everyone to find a couple of your favorite local restaurants and try to support them through this time.
Restaurantb industry is not going to die. A lot of businesses are going to go out of businesses, but new ones will buy the assets of the already permitted buildings.
I've talked to friends about this, but how does landlords benefit by letting the restaurants close down? Wouldn't it be in their best interests to to take late/drastically reduced rent payments to avoid none if the restaurant shuts down and a new one won't take its place anytime soon?
Its never been all or nothing... as evident by the rest of the state allowing it and outdoor eating being allowed anywhere.
Some people are going to have to deal with half measures so long as capitalism takes precendent over protecting livelihoods
Sometimes they'd rather try to find new tenants than take reduced payments. Other times the landlords are also getting squeezed by their mortgage servicers, who get squeezed by their underwriters. this greedy top down pressure is THE reason for our inability to protect the collective
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Of course, and at this point Cuomo is going to have to let NYC restaurants actually implement those half measures.
This is so fucking dumb and I'm glad others have more eloquently shot down this garbage take. It sucks hard for restaurants right now, but NYC should not move to indoor dining. Restaurants are currently piling people atop of each other in the streets, not trying to see that happen indoors, in poorly ventilated spaces.
Civilized nations actually used vast sums of money to give back to tax payers as to have livable wages so they could you know, pay rent. Eat food, and support the economy.
Notice they don't have mass graves either, and have the virus at a manageable level. Which is the second failure here, no one wants to go out if everyone is dying. All falls on this admins failure.
Its like how America is the only one with a gun problem it cant solve. Solutions are all right there.
But yeah, at least we have space force and the president gets a hypersonic airforce one, with our money.
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It's not dumb. There are restaurants in Queens that are in areas less dense than parts of Nassau County. A one size fits all approach is not the way to go. This goes doubly for the Bronx/Westchester border. It should absolutely be on a case by case basis.
The point of phased reopening is so that we can always scale back.
Outdoor eating is a half measure. Carry out and door delivery are also half measures
How will that work in the winter? It's not a half measure when 80 percent of restaurants couldn't pay their rent in July. That's like calling a blob of chewing gum a half measure for a sinking ship.
It's nonsense that we can literally bowl and gyms are open, but restaurants aren't even given a chance.
In NYC, we started buying seafood from a wholesaler since they've lost so much business from restaurants. He was telling us how he was owed over $500k from restaurants that have now closed so he will never see it. And that's just restaurants that have already closed. Doesn't include restaurants that haven't decided yet. I have no doubt the story is the same for every vendor.
All rent and mortgage payments should have been frozen six months ago. Federal interest rates are at 0 percent, so institutions holding debt should have received similar treatment, putting every person and business in a far safer position that what we've seen.
But when slum lords rule the nation...
But when slum lords rule the nation...
The jobs will be recovered eventually, it is not like the food service industry will disappear forever like other industries did in the past. If demand recovers new companies will be created to replace the ones that didn't survive.
(The government should help the people without jobs, but that should be something that need to happen regardless any crisis).
1) it isn't winter time
2) the problem is unrelenting rent requirements in a the middle of pandemic. Should have been frozen .
3) if limiting infection vectors is like chewing gum on a sinking ship, indoor eating in NYC would be like bringing in buckets of water.
Indoor dining seems like it could be done safely if you are careful. Outdoor dining is not going to work in the winter. But realistically even heavily limited indoor dining is probably not going to save most of these restaurants.
I'm in Jersey City right now and it's weird...restaurants are absolutely packing people in outside. Some restaurants have more capacity now than they did before! Grove Street is packed.
I'm in Jersey City right now and it's weird...restaurants are absolutely packing people in outside. Some restaurants have more capacity now than they did before! Grove Street is packed.
At least here what's going on is that tech people are buying restaurants for pennies on the dollar.
I suspect we'll end up with similar amount of restaurants, but instead of being owned by people who worked their way up in the industry (which a lot of them were), they'll be owned by Amazon people.
Outdoor dining at the jersey shore is busy as fuck. You can hardly get a table.
They better figure out the winter though. Upstate NY already had indoor dining but with limited capacity. It can be done safely.
They better figure out the winter though. Upstate NY already had indoor dining but with limited capacity. It can be done safely.
Yeah the domino effect of this will be felt for years if not decades.
And it will hit every sector. That many people out of work, unpaid bills and wages... It's a shitshow alright.
Since the very beginning, restaurants were fucked, especially places with less of a focus on food and family, as well as smaller om and pop places. I think COVID will only lead to remove good local options and we will be left behind with larger, national chains ready to move in and dominate again.
I think this is less a restaurant problem and more a rent problem. It's the same reason families are facing eviction. If they don't address that root cause then it won't matter what or who is renting.
although there are other side effects like supply chain, but yeah...
although there are other side effects like supply chain, but yeah...
That's an argument for those things, not bailing out the restaurant industry.
I live in Canada but it's seemed totally obvious the US government couldn't care less about individual citizens and small biz for years.
the only way to change this is to vote in more social democrats but that's too communist for a lot of your fellow citizens so I dunno how you fix the problem
the only way to change this is to vote in more social democrats but that's too communist for a lot of your fellow citizens so I dunno how you fix the problem
US? Maybe
US population? They have no money left for rent or food.
Our conservative government would be absolutely thrilled to see every single independently owned restaurant shuttered and replaced by Chili's and Olive Garden.
With this current president/administration unfortunately yes. It's and heartbreaking seeing how many restaurants are closing down and how many small businesses or families are losing everything all because this administration has proved largely incompetent at handling this pandemic in many ways. While the current government isn't 100% at fault as even if many of the restaurants were opened many people would avoid them still due to questions of it's safe or not, as noted, not hoarding money to the rich and instead competitively doing all it can to help fund/relieve small business owners/restaurants during this pandemic/forced closings would have been able to save many of them. It's just too tragic.
"Stocks are going up, so they don't care".
Electoral consequences should be enough of a motivator to a rational actor with an election in two months. But, it's simply the case that President Trump and Senate Republicans are just being completely irrational and oblivious to the electoral consequences facing them due to their indifference, not just to the restaurant industry but more broadly in all sectors of the economy. A rational actor with their ass on the line in two months SHOULD care, they should realize the electoral guillotine is hanging by a thread just over their heads, but there's absolutely no urgency among Trump and Republicans to pass a stimulus bill that meets the moment. Without that $3.4 trillion dollar stimulus package that Pelosi passed, people everywhere are getting absolutely destroyed economically.
Electoral consequences should be enough of a motivator to a rational actor with an election in two months. But, it's simply the case that President Trump and Senate Republicans are just being completely irrational and oblivious to the electoral consequences facing them due to their indifference, not just to the restaurant industry but more broadly in all sectors of the economy. A rational actor with their ass on the line in two months SHOULD care, they should realize the electoral guillotine is hanging by a thread just over their heads, but there's absolutely no urgency among Trump and Republicans to pass a stimulus bill that meets the moment. Without that $3.4 trillion dollar stimulus package that Pelosi passed, people everywhere are getting absolutely destroyed economically.
Not big enough to not fail.
Whichever side we come down on regarding the ethics of an industry bailout, all I can ask is, why would an administration which has since day one shown absolutely no interest whatever in anything but brazenly plundering the American people give the slightest shit about what's happening? Arguments about a bailout are irrelevant. It should be patently obvious that any chance the industry (and the country as a whole) has for survival is entirely dependent on how quickly this administration can be removed from power.
Whichever side we come down on regarding the ethics of an industry bailout, all I can ask is, why would an administration which has since day one shown absolutely no interest whatever in anything but brazenly plundering the American people give the slightest shit about what's happening? Arguments about a bailout are irrelevant. It should be patently obvious that any chance the industry (and the country as a whole) has for survival is entirely dependent on how quickly this administration can be removed from power.
Domino effect is already happening. Most banks have already written off the commercial notes on many of these loans backed up retail/restaurant income. It's gone and NEVER coming back. We've already had to set aside over 60 million in loans that we feel are going to R&R shortly or in the next quarter. The reason this isn't blowing up now is because of the delay in the final stage - default of the note. Q4 is going to be a BLOODBATH for lenders.
Landlords not reducing rent for businesses and people + covid + unemployment skyrocketing + no UBI.... restaurants (and lots of other service industries) are very unlikely to survive without a drastic change to how the US works.
Unless there is a serious redistribution of wealth from the 1% via taxes, etc then this will continue. But instead you make the poorest fight each others for scraps that aren't even the daily interest that Bezos gets on his billions.
Unless there is a serious redistribution of wealth from the 1% via taxes, etc then this will continue. But instead you make the poorest fight each others for scraps that aren't even the daily interest that Bezos gets on his billions.
1) You're obviously being obtuse. My point is that there isn't even a plan for the city as outdoor dining isn't viable long term.
2) I get it, but legally freezing rents isn't viable due to contract law
3) You and I are talking about different ships. The sinking ship I'm referring to is the restaurant industry. Even then, NY has completely flattened the curve, and this is all while slowly reopening the economy. Because of that, I think there is opportunity to cautiously allow indoor dining like the rest of the state. If we see a spike? Then we immediately scale back and or close restaurants.
In my area, most of the local restaurants seem to be doing fine, and it's the national chains that are suffering. Either way, people are losing jobs while the CEOs keep giving themselves raises.
Eat out to help out: 'We've had 15,000 bookings'
Restaurants are cautiously optimistic after the first week of the government's discount scheme.
www.bbc.com
The UK has a restaurant subsidy, 50% off meals up to a savings of £10.
What business, prohibited from doing business is sustainable?
This makes me sad, every day we rail on billionaires and business owners who take in an obscene percentage of wealth from their business at the expense of their workers and now we're basically telling people if you don't have a year or two's worth of operating expenses in the bank at all times you're an unsustainable business and should fail. I guarantee coming out of this the workers are going to get shafted even more now because not only is the job market going to be keeping wages down but who's going to operate on smaller margins out of the goodness of their heart when we've just got done demonstrating that they really need to be making more of a profit and keeping it to themselves for a rainy year. Fantastic.
Of course I don't think many cities are really financially equipped to handle this and without the Federal government this just is what it is but I wouldn't justify it or waive it away.
Plenty of restaurants that had emergency funds and found creative ways to change their business model to be somewhat sustainable even with reduced capacity.