Massachusetts Restaurants United!
When the pandemic has passed people will want restaurants to reopen because, among other reasons, “They want to go where that person knows your name,” said Tom Colicchio. He was a guest speaker at the first virtual town hall, held on May 14, by Massachusetts Restaurants United (MRU), a group of restaurant owners and operators advocating for relief from Covid-19 for small independent restaurants.
In response, Representative Ayanna Pressley, another invitee, lightheartedly accused him of pandering to the nearly 200 local restaurant industry professionals listening in with his casual nod to our most famous bar. But the thing is, Colicchio has a point. Restaurants are so much more than places to get a meal. And they are in very deep trouble.
As our quarantine drags into week 10 and people are still only dreaming about almost every aspect of daily life that we previously took for granted, it can feel almost frivolous—in light of the tragedy so many are experiencing—to pine for a meal out. But we need restaurants. As Michael Leviton, chef, Craigie Burger partner and MRU organizer, says, “We are the heart and soul of our communities.” On March 30, MRU sent a letter to elected officials, signed by more than 400 restaurant owners and operators, with a list of specific requests for emergency relief for their businesses and employees. The requests include items like tax relief, commercial and residential rent relief and a grant program for businesses with fewer than 125 employees. CARES, the initial Covid-19 relief act passed by Congress which included a Paycheck Protection Program (PPP) for small businesses, has proved woefully insufficient for the restaurant industry. Leviton points out that only 9% of the funds have gone to restaurants and 90% of restaurants owned by women and people of color have been shut out of the PPP process entirely. And the situation in Massachusetts has deteriorated significantly since the letter was drafted.
One in 10 jobs in Massachusetts is in restaurants and food service, notes Leviton. And most of the Covid-19 hotspots in the state are in communities where the majority of the restaurant workers live, “So the ability to open safely [and] quickly will be severely impacted,” he says. “What’s at stake is saving the small independent businesses that make up the personality of the neighborhoods… but also the spokes of the neighborhood. The fishermen, farmers, vendors and distributors. All of the related industries and businesses that help make us go.”
According to chef-activist Colicchio, a leader of the recently created national Independent Restaurant Coalition (IRC), the restaurant industry employs 11 million people in the U.S. Two-thirds of these workers have lost their jobs since mid-March. Colicchio maintains that the related businesses—farmers, fishermen, cheesemakers and others—account for another 20 million people. And he believes if the industry does not receive federal assistance, 50–75% of restaurants will go out of business, leading to a potential loss of six million jobs that may never come back.
IRC is asking Congress for a Restaurant Stabilization Package that they maintain is necessary to address the shortcomings of the initial CARES act as it applies to restaurants. “Getting open isn’t the problem,” Colicchio maintains. “The problem is staying open.” Across the country, including Massachusetts, restaurants will be reopening into a depressed economy. While there is no consistent set of federal rules, what seems to be clear is that in order to adhere to necessary social distancing requirements until a vaccine and/or treatments are available, they will have to reduce the number of seats dramatically. Bartenders and servers will have to wear masks. And who knows when or how many diners will feel comfortable returning? Restaurants offering takeout and delivery now are, for the most part, earning a small fraction of their regular income—not a sustainable long-term business plan.
Villa Mexico Café in downtown Boston is a family-owned restaurant with seven employees. Bessie King, a first-generation Mexican-American and only child, joined her widowed mother, Julie, in the business several years ago. Though the business has faced numerous challenges in its 20 years, King says, “Covid is a whole different beast to handle.” Since the shutdown the restaurant has lost 80% of its business, yet the owners are fighting to stay open to feed the public and pay employees. King’s mother has used up her savings and started a GoFundMe campaign (villamexicocafe.us). To date Villa Mexico has provided 400 meals for medical workers and first responders, donating $4,000 worth of food.
King, who joined MRU after having formed a group of what she calls fellow “minority” owners, says, “Without [restaurants] your main streets would be barren. Hundreds of jobs would not exist. Restaurants closing will create a devastating long-term ripple effect to the economy of America.” In addition to MRU’s initial requests, King mentions the need for an “equitable, science-backed reopening plan that is safe for our teams, vendors and customers with a backup plan if a flare-up occurs, and access to personal protective equipment for restaurants.”
In early May, Representative Pressley and Senator Kamala Harris introduced the Save Our Street Act (SOS), intended to support microbusinesses throughout the country during the Covid-19 crisis. If passed, it could offer a lifeline to independent restaurants. The legislation defines microbusiness as having fewer than 10 employees and earning less than $1,000,000 per year, or up to 20 employees in low-income communities with at least half of their employees from the community. SOS requests $125 billion in assistance funding to be awarded in the form of grants of up to $250,000 that can be used for payroll, rent, utilities and other essentials like personal protective equipment. The legislation stipulates that 75% of the funding should go to historically underrepresented businesses. “The virus does not discriminate, but our existing economic and public health systems certainly do,” Pressley says. “Our legislation is about filling a gap,” the Congresswoman continues, acknowledging, “To put it bluntly, we [the government] are failing the restaurant industry and restaurant workers.”
We can’t afford to lose these businesses. Stay tuned for updates and visit saverestaurants.com.
