Survey Warns 70 Percent of State’s Small Restaurants, Bars Could Perish in Pandemic

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A survey of 100 locally owned and family-run restaurants statewide shows up to 70 percent will close if pandemic restrictions aren’t reduced or help isn’t offered, writes Laura Smythe for the Philadelphia Business Journal.

The Aug. 25-28 survey from the Pennsylvania Licensed Beverage and Tavern Association went to 1,234 businesses, with 100 responding.

Of those who responded, 13 percent have already closed, five percent are likely to close within a month, 29 percent expect to close by the end of the year, and 23 percent expect to close in 2021.

July revenue was down an average of $227,179. Since March, 71 percent of respondents have had cash flow problems paying rent, utilities, taxes, and loan repayments.

“This industry can’t sustain itself under these conditions,” said the Association’s executive director Chuck Moran.

Gov. Tom Wolf did increase indoor dining capacity to 50 percent last week but also restricted alcohol sales up to 10 PM.

Alcohol sales are 69 percent of business at small taverns and restaurants , a 2019 survey shows.

The most helpful state legislation would be $25,000 grants for pandemic-related expenses, along with forgiveness of license fees and surcharges for 2020-21.

Read more about the survey’s results in the Philadelphia Business Journal here.

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