Why can your favorite local restaurant survive coronavirus

The economic realities of social distancing will make it very difficult for the survival of the mother and pop.


A truly sad reality to emerge from thecoronavirus epidemic: A number of restaurants belonging to the rental will be difficult to survive the effects of the potentially fatal pandemic.

Monday afternoon, the working group on the coronavirus of the White House recommended to American citizens do a number of things to prevent the spread of thedangerous pandemic during a press conference.

Head of them? "Avoid eating or drinking in bars, restaurants and food courts - use Drive-Thru options, pickup or delivery," and "in states with evidence of community transmission, bars, Restaurants, catering courts, gymnasiums and other indoor and outdoor people sites where groups of people gather should be closed. "

Many states have already closed bars and restaurants (except delivery) for all companies, and it seems inevitable that will soon be a national policy. The guidelines of the White House officially give a 15-day period, but even President Trump admitted that this could be months before things start coming back to normal.

So the Americans are directed towardsnot Go to restaurants and bars of caution abundance to prevent the spread of COVID-19. But, given the thin margins razor and the complicated economy of small restaurants belonging to the location, it is difficult to see how many of them will survive a temporary stop.

Ask any owner of a small restaurant and they will explain how difficult it is to juggle the cash flow from the company's operation. There is the control of fresh food and ingredients, the payroll of cooks, servers and support staff, and of course the rent, an owner must pay on a monthly calendar. Many restaurant owners do their job on a love of love and are not independently rich to survive such an economic disaster.

AsPete Wells described in theNew York TimesThese "a few frenetic days" of closed doors turn into a much greater concern - and fast:

"Because many of the fixed operating costs of a restaurant have not stopped. There is always a rent payable and taxes, such as the New York State sales tax bill last Friday. These Only bills could crush restaurants in a few weeks unless they have a lot of money in reserve.

"Referring or renouncing the sales tax would be the fastest way to transmit these companies without the government out of the pocket" Jonathan Butler, a founder ofSmorgasburg andBrooklyn chipsaid Sunday. "The other huge factor is the way they treat leases. Most people have some form of personal warranty on their rental agreements. I can not imagine as a political point of view they want to get out of this crisis and have owners of small businesses that lose their home because they had a personal warranty. This is an issue that could be treated by the policy in the way. "

Business chains such as Applebee, Olivier Garden and Adding Fast Food Channels like Taco Bell,KfcAnd McDonald's - all probably have the largeness to help survive a month of downtime. But the majority of these quick outlets are owned and exploited by franchisors who will fight with the same problems as the owners of mom and pop (although most likely with the support of their food partners).

Despite all this, there is no question that bars and restaurants should be closed for the bigger public good. Written forRue grub, owner of a restaurantAlex Stupak makesThis same case:

"At this moment, the choice to close is not mandated. It's rough. All service industries are crushed. We can not pay the staff. We can not pay rent. We can not pay our share of land taxes. How can we pay taxes when we left no taxable transaction? I am grateful to have great owners, huge relationships with people who understand what's really going on, but my situation should not be undergoing if my owners are good people.

We need help. Restaurants are transparent companies. They do not hold a million dollar float - these companies are simply not configured in this way. At EmEllón, we went from a little money to the Bled Dry. It was not a slow and regular decline - it was a straight drop. "

Stupak arrives at the logical conclusion that all businesses belong to this imminent economic catastrophe. Stupak wonders Rhetorically ", how much money do we have to cover the payroll of last week and what will be the right cost to keep us in hibernation mode? And how long does it go?"

If the US government is willing to bail out negatively affected industries bycoronavirus, like the airline and cruise industries, then should not they also take care of the restaurateurs? Otherwise, we could end up seeing many of our favorite restoration stains range from belly.

And what sad result it would be.

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