Restaurants Say Expanding to 50% Capacity is Necessary for them to Survive

   Restaurants opened at 25% capacity in New York City on Friday, which might not be soon enough for many of the city’s eateries: 92% of which just reported they were not able to pay their rent in December 2020, revealed the New York City Hospitality Alliance after compiling 400 responses in a recent survey.

     The number of New York City restaurants that could not pay their rent has been steadily increasing since the start of the pandemic last spring.

   In June 2020, for instance, 80% of restaurants reported that they could not pay their rent. That number increased to 83% in July, 87% in August, and 88% in October.

    Despite decreasing revenues in restaurants, the survey’s 400 respondents reported that only 40% of tenants' landlords reduced their rent last year, only 36% of tenants' landlords deferred rent, and only 14% of restaurants were able to renegotiate their leases.

     While the COVID pandemic and its restrictions have forced thousands of eating establishments to close permanently, restaurant owners who are still holding on say that being allowed to open at 50% capacity, as the rest of the state has done, would go a long way in helping them to stay in business.

     "We're nearly a year into the public health and economic crisis that has decimated New York City's restaurants, said Andrew Rigie, executive director of the NYC Hospitality Alliance. "While the reopening of highly regulated indoor dining is welcome news, we need to safely increase occupancy to 50% as soon as possible, and we urgently need robust and comprehensive financial relief from the federal government.” 

    Some city officials say that only a generous federal stimulus would be able to save the restaurant industry in New York City, which was once called the “Restaurant Capital of the World.”

     In the meantime, some restaurants are staying afloat by offering creative and entrepreneurial ideas, such as offering meal delivery services and even groceries. Other restaurants are allowing other brands to use their kitchens.