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January 28, 2022

Omicron variant threatens 18K CT restaurant jobs; industry calls for renewed aid

Photo | Contributed Connecticut Restaurant Association Executive Director Scott Dolch holds a brainstorming session with members during a pre-pandemic meeting.
By Zachary Vasile

The COVID-19 omicron variant has hammered Connecticut’s restaurants, an industry group reported this week, putting many in the worst position they’ve seen since the wide-scale lockdowns of spring 2020.

According to a survey conducted by the National  Restaurant Association, 96% of restaurants have experienced a decline in demand for on-premises dining in recent weeks, mainly due to the spread of omicron. Eateries made a number of changes to cope with the worsening circumstances, including reducing hours of operation (52% of respondents), closing on days they would normally be open (34%) and reducing seating capacity (27%).

Association officials said 87% of operators believe business conditions are worse now than three months ago, and 74% say their sales volume in 2021 was below what it was in 2019.

In response, the Connecticut Restaurant Association is making a case for the replenishment of the Restaurant Revitalization Fund, which channeled billions of dollars to dining establishments across the country but ultimately ran dry before many businesses could access it.

The state survey found that nearly 51% of restaurant operators that did not receive RRF grants feel it’s unlikely they will stay in business beyond the pandemic without a grant, and 96% of restaurant operators that applied for an RRF grant, but did not receive funding, said a future grant would enable them to retain or hire back employees.

“The survey highlights how impactful RRF replenishment would be,” said CRA President and CEO Scott Dolch. “The National Restaurant Association estimates indicate that full replenishment of the RRF will save an additional 18,000 Connecticut restaurant jobs. The RRF was a critical lifeline to many, but far more remain on the sidelines, desperately looking for support amidst continued economic uncertainty. The decisions Congress could make in the coming weeks will be critical toward the future of the restaurants that are so proud to serve our communities.”

The first round of RRF provided support to 1,300 small businesses in Connecticut, but the state still has 2,066 pending applications that total more than $489 million.

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