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National Restaurant Association asks Congress for aid amid omicron

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On March 18, 2021, people dine on an outdoor patio at a New York City restaurant.

Angela Weiss | AFP | Getty Images

National Restaurant Association has asked Congress to increase the Restaurant Revitalization Fund, as the omicron version hits operators’ business.

The $28.6 Billion Fund was created by lawmakers last year to help restaurants and bars that are struggling due to the economic downturn. pandemic. These grants could be used to offset a restaurant’s total pandemic losses up to $5million for one location, or $10 million for businesses with less than 20 locations. Franchisees from publicly traded companies could apply, though they were not eligible.

Restaurants are begging Congress to replenish the fund since it ran out. While several legislators have proposed legislation, the bill has not gained momentum and the Biden administration isn’t interested in supporting it.

But the latest surge in Covid-19 casesThe impact of this on restaurant business could be a game changer.

In a recent survey, the National Restaurant Association found that 88% saw indoor dining demand decline due to the Omicron variation. Over three quarters (75%) of those surveyed said that the current business climate is much worse than what it was just three months prior. The majority of restaurant operators stated that they are less profitable than before the pandemic.

“Alarmingly the industry still hasn’t recreated the over 650,000 jobs lost in the pandemic,” Sean Kennedy, the top lobbyist of the trade group wrote to the Congressional leadership.

Kennedy also praised the RRF grant’s first round benefits. According to the trade group, the funding saved more than 900,000. 96% of the recipients stated that the grant increased their chances of staying in business. According to estimates by the trade group, a full replenishment would result in more than 1.6 millions jobs being saved.

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