Delta Variant Threatens Washington Restaurants, Association Says

WASHINGTON — The spread of the COVID-19 virus's delta variant has driven a statewide and national surge in new cases and hospitalizations, and now threatens some of Washington's most vulnerable businesses: restaurants.

In a letter to Congress, the Washington Hospitality Association and 50 other state restaurant association partners urged officials to replenish the Restaurant Revitalization Fund (RRF). In Washington 7,236 restaurants applied to receive more than $2 billion in RRF funding, but only 3,247 — around 44.5 percent — saw those requests approved.

“We are calling on Congress to backfill program funding so that these small businesses get the help they need,” said Anthony Anton, president and CEO of the Washington Hospitality Association. “Six members of Washington’s Congressional delegation have already signed on in support of additional funding. We’re grateful for their support, and call on the rest of our delegation for their support.”

Ultimately, the RRF paid out roughly $921 million to Washington businesses, according to the Washington Hospitality Association, less than half of what local restaurants requested. Restaurants that applied for funding but didn't receive aid say they've been devastated by the loss.

“I waited for a month for the funding that would help our business stay open, only to find out the program closed, and our application was canceled," said Chelley Bassett, owner of Murphy’s Pub in Seattle. "It’s heartbreaking, and I can only call on Congress to do the right thing and support businesses impacted by the pandemic."

The Restaurant Revitalization Fund was signed into law by President Joe Biden in March as part of his American Rescue Plan Act. It initially received $28.6 billion to provide relief to restaurants and other food and beverage businesses in the United States.

While annual restaurant sales are expected to increase nearly 20 percent versus 2020, they are still approximately 9 percent lower than their pre-pandemic levels, according to a report from the National Restaurant Association.

In addition, a survey found the majority of Americans have changed their dining habits in recent months due to the delta variant, the National Restaurant Association announced.

Here's what else the survey found:

• 19 percent of adults stopped going to restaurants due to the virus.
• 9 percent of adults canceled plans to eat out in recent weeks.
• 37 percent ordered takeout or delivery, rather than eat out.
• 19 percent chose to eat on a patio rather than indoors.

On top of shifting dining habits, 11 states have indoor dining capacity limits, food and supply costs are increasing, and many restaurant owners are carrying long-term debt, the group said.

"For an industry that requires a 'full house' every evening to make a profit, this is a dangerous trend," said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association. "These changes indicate declining consumer confidence that will make it more difficult for most restaurant owners to maintain their delicate financial stability."

Washington is not among the 11 states with indoor dining capacity limits, as its restaurant restrictions were lifted in late June. However, mask use is still required in indoor public spaces like restaurants, and the current surge in COVID-19 hospitalizations and deaths likely has many potential customers staying home.

"If we want to sustain a thriving, diverse restaurant industry, Congress must fix this by adding more funding to the program," said Steve Hooper, president of Seattle Restaurant Alliance and at Ethan Stowell Restaurant Group. "So many operators I know are deep in debt through no fault of their own. Some were thankfully able to secure funding, others were approved but didn't receive it, and many were never able to apply at all."

Related:

These Washington Restaurants Got Restaurant Revitalization Money

More Than 2,300 Washington Restaurants Closed Since March: Report