AUSTIN (Talk1370.com) -- New figures from the restaurant industry show the devastating impact the coronavirus pandemic has had on Texas eateries.
New data from a survey by the National Restaurant Association shows that more than 688,000 restaurant employees have been laid off or furloughed since COVID-19 closed dining rooms across the state, representing at least 61% of the 1.2 million restaurant employees across the state employed in February.
Nationwide, the restaurant industry estimates more than eight million jobs have been lost – this loss represents two out of every three restaurant jobs. Additionally, the restaurant and foodservice industry lost $30 billion in revenue in March and is on track to lose an additional $50 billion by the end of this month.
In Texas, as the coronavirus pandemic continues its unrelenting beat down of the sector, 84% of restaurant operators say they have laid off or furloughed employees. Restaurant owners anticipate laying off or furloughing an additional 18% of employees during the next 30 days.
"Texas restaurant owners and employees are in a desperate situation. We're looking at the potential extinction of the Texas restaurant ecology. What else has to happen to demonstrate to the government that a mandated shut down, a PPP program that reached fewer than 7% of restaurants, and nearly 700,000 unemployed Texas restaurant workers will lead to a permanent closure of many Texas restaurants?" said Dr. Emily Williams Knight, President and CEO of the Texas Restaurant Association. "When this all began, we thought the worst-case scenario would be up to 500,000 jobs lost – and as we sit here today, without knowing when dining rooms will be allowed to open again, it means the end result will be much, much worse."
Restaurant operators in the survey reported an average decline in sales of 70% between April 1 and April 10, with 96% of Texas restaurant owners saying their sales were down year over year. Based on those numbers, 6% of the more than 50,000 restaurants in Texas anticipate having to close permanently within the next 30 days, the survey indicates.
