By iHeartMedia s Corey Olson
Jan 15, 2021
As the coronavirus pandemic drags into its 11th month, there is still no end in sight for forced closures and restrictions that have upended the restaurant industry. In fact, things are getting worse, with several states imposing new shutdowns last fall that have yet to be lifted or eased. The latest government report shows layoffs in accommodation and food service totaled 393,000 for the month of November, up from 130,000 in October.
The situation is unsustainable, according to Jonathan Horowitz, CEO of Convive Hospitality Consulting and former president of the Houston Restaurant Association. There are a lot of small businesses restaurants in particular that are just hanging on, he says. Businesses weren t set up to operate at 50 percent capacity or 75 percent capacity, and if the revenue is not there, they just can t hang on forever.