Senate passes amendment that includes help for restaurants
With a 90-10 vote, the U.S. Senate passed an amendment that calls for a direct restaurant relief fund, now part of President Joe Biden's $1.9 trillion American Rescue Plan.
This restaurant recovery plan, approved Feb. 4, was based on the original $120 billion Restaurants Act proposed in April, which has strong advocates in the United Fresh Produce Association and restaurant associations.
“The inclusion of a restaurant aid program in the budget resolution is another important step to help our struggling food service supply chain,” said Robert Guenther, United Fresh senior vice president of public policy. “United Fresh fully supports its inclusion and looks forward to working with policy makers on Capitol Hill to ensure that the foodservice supply chain can successfully utilize these funds for much-needed infrastructure investment.”
Keep in mind, the latest amendment to the budget resolution was not a bill, but more of an agreement to consider funding for restaurants, Guenther said. Still, it’s progress.
Restaurant and bar sales fell by $180 billion since the COVID-19 pandemic began, and more than 2.4 million of those employees remain out of work, according to the Independent Restaurant Coalition — causing a ripple effect that’s crippled foodservice providers, their wholesalers and their growers and packers.
“The Senate made it clear today: it’s time to save restaurants and bars. There is undeniable bipartisan support across the country for a dedicated restaurant relief fund,” coalition executive director Erika Polmar said in a statement.
The two restaurant groups indicate this restaurant grant fund will get $25 billion, but Congress hasn't made any official announcement yet of a specific dollar amount.
“The announcement from Majority Leader Schumer and Speaker Pelosi of a $25 billion restaurant recovery fund has the potential to be a game-changer for tens of thousands of restaurants on the verge of closing,” Sean Kennedy, National Restaurant Association executive vice president of public affairs, said in a statement.
The majority of the restaurants that closed during the pandemic had been in business for at least 16 years, according to the National Restaurant Association’s 2021 State of the Restaurant Industry report.
And 72% of restaurant owners who closed for good say it’s unlikely they’ll open another restaurant in the coming months or years.
“As we approach the one-year mark of pandemic-related dining restrictions, we know that virtually every restaurant in every community has been impacted,” restaurant association president and CEO Tom Bené said in a statement.
