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You Won't Believe How Many Beloved Mom-and-Pop Restaurants are Closing

A new report details just how many local eateries are projected to close by the end of the year.

The pandemic has caused a lot of businesses to fold, especially independent restaurants, cafes, and coffee shops.

Many local mom-and-pop restaurants had to close their doors entirely during the pandemic, as they didn't want to risk exposing their employees to the virus by prepping takeaway orders. A lot of independent restaurants also didn't have the bandwidth or resources to offer delivery.

As a result of the mandatory shutdown, as many as 85% of independent restaurants could close by the end of 2020, says a new report from the Independent Restaurant Coalition. The only way these local businesses have a chance at surviving in the future is if they receive help via a massive federal aid package.

RELATED: 6 Ways To Support Local Restaurants During the COVID-19 Pandemic 

The report calls to attention that independent restaurants were not adequately helped by the Paycheck Protection Program and as a result, would have a better chance at staying in business if a proposed $120 billion Restaurant Stabilization Fund passes.

"PPP was designed as immediate and temporary relief for small businesses to bridge approximately two months," the report said. "Independent restaurants, on the other hand, are in the precarious position of facing longer-term, compulsory capacity limitations in state-led economic reopenings and need bridge assistance through the end of the year."

Depending on how severe the impending second wave of coronavirus is in the fall, restaurants will again be forced to shutter their doors. Mom-and-pop eateries need extra funding in order to make it through the remainder of the year. The report also articulates that aiding local restaurants would reduce the U.S. unemployment rate from 14.7% to 12.3%.

"The United States is at a crossroads in terms of how citizens consume food," the report said. "If a substantial portion of independent restaurants fail by yearend, consumption will largely be limited to homecooked meals, chain restaurants, or fast food. In addition to shrinking palates, cities and neighborhoods will suffer identity crises and lose much of the magnetism that attracts in-state and out-of-state visitors."

Cheyenne Buckingham
Cheyenne Buckingham is the news editor of Read more about Cheyenne
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