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Industry Survey Says Michigan Restaurant Trade “In Free Fall”

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With more than 16,000 restaurants in Michigan, a trade group survey says the industry “is in free fall and at great risk of being completely decimated through no fault of its own.” Those are the words of Justin Winslow, President & CEO of the Michigan Restaurant & Lodging Association following release of data from his group’s recently completed COVID-19 Restaurant Economic Impact Survey.

Winslow says, “This survey brings empirical data to what we have all witnessed in recent weeks—that the restaurant industry in Michigan is in free fall and at great risk of being completely decimated through no fault of its own.” He goes on to say, “There are more than 16,000 restaurants in this state. Under the current circumstances, as many as one-third might not make it through without significant financial help and flexibility from our elected leaders.”

With the survey showing that the restaurant industry lost an estimated $491 million in sales and more than 72,000 jobs during the first 22 days of March, Winslow reminds patrons, “Restaurants also need community support through purchases of carryout and delivery as they operate under a new business model,” adding, “Restaurants make our lives better by creating spaces to join together with those we love and appreciate over a great meal. If we want them to be there for us when this is over, they need our help now.”

The survey tells us that eighty-four percent of Michigan restaurant operators say their total dollar sales volume during the period from March 1 to March 22 was lower than it was during the same period in 2019. Additionally:

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  • Nine percent of operators reported higher sales, while 7-percent of operators say their sales were about the same as they were during the same period in 2019.
  • On average, restaurant operators reported a 43-percent decline in sales during the period from March 1st to March 22nd.

Winslow says the survey shows that Michigan restaurant operators took a number of actions during the first three weeks of March, in response to the COVID-19 outbreak:

  • 62-percent of restaurant operators laid off employees, while 47-percent anticipate doing more of that during the next 30 days…
  • 61-percent of operators cut employee hours…
  • 61-percent of operators reduced their hours of operation…
  • 44-percent of operators temporarily changed their business model to off-premises only…
  • 41-percent of operators temporarily closed their restaurant…

Already as a result of the pandemic, 1-percent of operators permanently closed their restaurant, and another 9-percent anticipate permanently closing their restaurant within the next 30 days.