A Staggering 64% Of New York Restaurants Could Shut For Good By 2021, Analysis Says

TOPLINE

As the coronavirus pandemic continues, the restaurant industry has found itself as one of the worst-affected sectors as people opt to stay home and social distancing measures limit the number of customers permissible to be served—a survey from the New York State Restaurant Association found nearly two-thirds of restaurants in the Empire State were likely to shut down before the year is out.

KEY FACTS

Crucial quote

“It is painfully clear that without financial assistance, the restaurant industry in New York State could collapse,” Fleischut said in a statement. “These recent survey results illustrate just how dire the financial situation has become for most restaurants, and it shows how critical it is that elected officials understand the urgency of the situation.”

Key background

The restaurant industry has been battered by the coronavirus pandemic, especially in New York, which found itself the epicenter of the virus earlier this year. Over just a three-week period in March—when the first New York cases were detected—New York restaurants lost sales totaling an estimated $1.9 billion and slashed around 250,000 jobs, according to NYSA. New York City has been hit especially hard, as eateries in the city are still banned from offering any indoor seating, unlike the rest of the state. While outdoor dining in New York City has been popular as sidewalks and parking spots have been converted into dining spaces, this week more than 350 restaurants signed on to a $2 billion class-action lawsuit alleging city and state officials have caused “irreparable harm” with the ban on indoor dining. 

Further reading

A Running List of NYC Restaurants That Have Permanently Closed, September 2020 (Eater)

NYC Restaurants Sue Cuomo, De Blasio For $2 Billion Over Indoor Dining Ban (Forbes)

NYC Outdoor Dining Will Return Next Year—Even If Covid-19 Doesn’t (Forbes)