Posted on 05/05/2020 8:53:05 AM PDT by Hojczyk
In New York, and other states that have yet to reopen, and where occupancy limits are inevitable once they do, a PPP loan can feel more like a burden than a gift. “It feels really scary to take on potential debt even though it’s like, maybe forgivable when the timeline for reopening is so vague. And then there’s no clarity about whether or not we can open in a full capacity,” says Carla Perez-Gallardo, a co-owner of Lil Deb’s Oasis, a snug neighborhood restaurant in Hudson, New York.
Lil’ Deb’s Oasis has a legal capacity of 30 people, and the restaurant’s owners can’t see a way to hire back their full-time staff members while serving a half-empty restaurant. “The pressure is on businesses to pay their employees that they’ve hired back, at a time in which they may not even be able to pay their rent,” says Perez-Gallardo. “It feels like an odd narrative to be moving toward at a time where it doesn’t feel possible.”
The path forward is extremely uncertain for restaurants, whether they apply for and are given a PPP loan or not. Resources and guidance across the country are limited, and restaurant owners are left to ask questions that no one, it seems, will answer. “For us, the best-case scenario would be to have flexibility with our landlord and for our local and our federal government to provide some relief or guidance in how to move forward,” says Sprouse, who applied for a loan but has yet to hear back. “Right now it’s like they’re putting a Band-Aid over a severed leg.”
(Excerpt) Read more at eater.com ...
We really need to compile a list of the doom and gloom Karens on FR, so we can know NEVER trust anything they say EVER again!
I hate to say it, but the 50% rule is pretty much self regulating. You can open every seat but there just won’t be many customers to fill them. This will be more than a short term problem. I would think it reasonable to say by December they will still only have about 50% of the revenue required.
This is essentially total devastation of the industry. Take out and
Delivery will be huge but not near enough.
How much will the restaurants have to spend on legal fees before the case is tossed?
We "should" have tort reform, but we don't.
Most fancy restaurants make there money on drinks..and break even on the food..
A girl I know works at a Golf and Country Club and it is nothing for a couple to spend over a hundred dollars for a meal and drinks..and she gets a twenty percent tip added to the bill...
Most restaurants make more money on a pasta dish than a Lobster dinner
Very happy to hear this!!
That or move them farther apart if they have room.
Again. Zero reason for a carve-out for restaurants and entertainment. In fact much more reason for essential businesses, such as in the medical and food and transportation supply chains. We are in a low-intensity war with China right now and iif we come back with less frivolous consumption and more economy-strengthening manufacturing, for example, that may be for the better. Certainly no reason to put the government’s thumb on the scale for, especially, the sector Trumo’s billion-dollar family business is in. Bad optics could be the difference-maker in November and bad policy hurts those not favored by it.
I have said that from the time it was signed into law. The SBA EIDL is the same poison pill. If you cannot make it on limited capacity...you aren’t going to make under the new normal. AND that darn loan isn’t forgivable if you file bankruptcy. That part is in the fine print and has been there since the beginning. While no collateral was required, it is your word, your oath to repay. If you fail you lose and like a student loan it isn’t forgiven. You still have to pay it all back. Business income or not. When you accept the loan you are signing your life away.
So instead of posting criticisms of political decisions here, we should all run for office instead because otherwise it’s Monday morning quarterbacking. Got it. At least there will be a lot more cat videos to discuss.
We’ll just transfer all those in the “frivolous consumption” business over to manufacturing your “essential windmills and solar panels” first thing in the morning and we’ll be on the road to your utopia.
You are so clueless.
No, for clueless you have to go to your post #87 where fail to acknowledge the connection between the restaurant business you hate and the food and transportation business you promote. (I never mentioned entertainment)
No, pal—I don’t hate the restaurant business.
I do hate Freepers here so vested in their own special interest that they are for Pelosi-style special government treatment and preference, and accuse those who point such out as somehow being Pelosi leftists. Talk about projection!
And now can’t see the difference between the essential food chain and dine-in restaurant service that has been closed for the last two months because of the nonessential additional risk that comes from such service.
So, you drank the koolaid?
So, you drank the koolaid?
No, of course not. Let me explain it to you one very last time:
You are so blinded by your perceived self-interest that you are looking for special dispensation that takes away the rights of others (to sue if others have negligently damaged them) by the big Nanny State.
And then you project on to me as if I am the Pelosi-like one here!
I just hate trial lawyers destroying small business when there is no mechanism to prove "negligent damage".
Not going to happen. The slaves goofed up when they demanded that their masters rule them with a hand of iron.
Still absolutely no reason for Nancy to give restaurant owners a special carve out. None.
You just don't like it.
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