More restaurants are struggling from the pandemic than expected and say money from the government has become increasingly important, according to a new survey issued by the National Restaurant Association.

With more obstacles from the pandemic — including workers demanding higher wages, an increase in the price of food from supply chains, and customers still not at pre-pandemic numbers — the majority of respondents say the restaurant industry is worse off than it was three months ago.

INDUSTRY GROUP SAYS 18,000 NEW YORK RESTAURANTS IN DIRE NEED OF ADDITIONAL FINANCIAL AID

Sean Kennedy, executive vice president of public affairs for the National Restaurant Association, sent a letter to Congress warning of the dangers of the Build Back Better Act.

“Our nation’s restaurant recovery is officially moving in reverse,” Kennedy said. “The lingering effects of the delta variant are a further drag on an industry struggling with rising costs and falling revenue. We support many of the goals of the Build Back Better Act, but the legislation is too large and too expensive a check for small businesses to take on. Restaurants still need help today and overwhelming them with costly new obligations will only prevent progress in turning the tide of recovery.”

The survey polled over 4,000 restaurant operators that found the delta variant slowed indoor dining in 75% of restaurants. Ninety-one percent have seen an increase in food prices, 84% have higher labor costs, and 71% are understaffed. About 75% of restaurants changed menu items because of issues with the supply chain.

Forty-four percent think it will be at least a year until business normalizes, and another 19% don’t think it ever will.

A survey by the Independent Restaurant Coalition found 82% of those surveyed believe they will have to close if they do not receive government aid.

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The National Restaurant Association asked Congress to replenish the Restaurant Revitalization Fund, which set aside $28.6 billion in grant money to help restaurants as part of the American Rescue Plan Act of 2021. Funds in the RRF ran out in July.

Original Location: Pandemic put more strain on restaurants than owners anticipated, survey finds

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