US restaurant industry has lost two-thirds of workforce, finds survey

21st April 2020 (Last Updated April 21st, 2020 09:38)

A survey has found that the US restaurant industry has lost eight million employees, approximately two-thirds of the total workforce, due to the Covid-19.

US restaurant industry has lost two-thirds of workforce, finds survey
The survey has noted that the restaurants were on track to lose $50bn in April. Credit: Free-Photos / Pixabay.

A survey has found that the US restaurant industry has lost eight million employees, approximately two-thirds of the total workforce, due to the Covid-19.

The survey was conducted by the National Restaurant Association (NRA), a business body representing nearly 500,000 restaurant businesses.

The association has also sent a recovery plan to the US Congress seeking additional financial assistance that will help the restaurant industry to combat the current crisis.

In the survey, the NRA noted that more than 60% of restaurant owners find the existing federal relief programmes inadequate.

The association said that the restaurants will take a $50bn hit this month. In March, the industry incurred a loss of approximately $30bn.

The survey included 6,500 restaurants located across the US.

In a letter to the congressional leaders, NRA Public Affairs executive vice-president Sean Kennedy said: “The restaurant industry has been the hardest hit by the coronavirus mandates, suffering more sales and job losses than any other industry in the country.

“On March 18, we wrote you warning of a bleak outlook for the restaurant industry as the pandemic was unfolding.

“One month later, we have a clearer picture of the severe challenges that lie ahead and ask for a focused solution on behalf of an industry that is a vital part of every community.”

Earlier this month, the trade group Independent Restaurant Coalition also sought the US Congress assistance to save small restaurants.

Specifically, the coalition called for changes in the coronavirus stimulus package, also known as CARES Act.

The industry of the US’s northern neighbour Canada has also been significantly affected by the impact of the pandemic.

A recent survey revealed that approximately 800,000 foodservice jobs in Canada were lost in March 2020.