HospitalityMaine joins call for boosting federal relief to pandemic-stricken restaurants
Photo / Renee Cordes
Restaurants and food vendors, like this ice cream shop in Castine, are grappling with a labor shortage exacerbated by the pandemic.
With hundreds of pandemic-stricken food and drink businesses across the state still seeking federal relief, HospitalityMaine has joined a national call for Congress to shore up funding.
The call relates to replenishing the Restaurant Relief Fund, which was established by the American Rescue Plan Act, to provide emergency assistance for eligible restaurants, bars and other qualifying businesses affected by COVID-19.
While the fund has been a lifeline for many business owners, it was only able to fund roughly one in three applications, leaving 177,000 restaurants nationwide with an uncertain future, according to a letter signed by 51 state organizations including HospitalityMaine and the Washington, D.C.-based National Restaurant Association.
The two-page missive, dated Aug. 24, is addressed to House Speaker Nancy Pelosi; Senate Majority Leader Charles Schumer; Senate Republican Leader Mitch McConnell; and House Republican Leader Kevin McCarthy. The plea comes on the heels of fresh data showing a mixed outlook for restaurants nationwide.
The letter cites concerns including the rise of the delta variant, steep increases in food and labor costs, continued indoor capacity limits in 11 states, and "crushing long-term debt loads for countless restaurant owners" — all of which are weighing on restaurants' bottom lines.
"The small gains that our industry made toward financial security are in danger of being wiped out, dashing the hopes of communities, entrepreneurs and consumers nationwide," the letter said. As of Thursday, there was no response from Washington, according to a spokeswoman for HospitalityMaine.
Matt Lewis, president of statewide trade group, told Mainebiz earlier this week that while there are some positive takeaways from the new national report, workforce issues remain a hurdle for hospitality businesses in Maine and elsewhere.
"Maine is not the only state with a struggling workforce," Lewis said by phone. "It's happening everywhere, and we will likely be having these conversations for years to come, even if you continue with the upward trajectory of getting out of COVID."
Greg Dugal, government affairs officer at HospitalityMaine, shares that view.
“There are hundreds of Maine hospitality operators stuck in limbo waiting to find out if Congress will act to provide the stability they need to make it through this new pandemic threat and into the future,” Dugal said in Thursday's news release related to the letter.
“The rise of coronavirus variants like delta threaten to push these restaurants closer to permanently closing their doors. It’s time for Congress to step in and fulfill the promise of the RFF [Restaurant Revitalization Fund]."
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