Restaurants could go bust & leave millions without jobs if government fails to help, award-winning chef tells Boom Bust

Restaurants are one of the hardest-hit sectors by the coronavirus pandemic and even after the outbreak is over the industry will still struggle to survive, according to restaurateur Andrew Zimmern.

Despite some operators – who managed to continue working for delivery and to go orders amid lockdowns in the US – making a profit, the virus is a disaster for the industry which is the second largest employer in America right behind the Defense Department, according to the award-winning chef.

However, working for delivery is “a drop in a bucket” and not a viable solution for most restaurants as they cannot even cover rent and other expenses, Zimmern, who is also one of the founding members of the Independent Restaurant Coalition, told RT’s Boom Bust.

“We believe in two very important things right now. Number one, PPP [Paycheck Protection Program] has to be fixed or backstopped, extended in some way so it actually makes sense. You can’t have an eight-week band aid for an 18-month problem,” he said, referring to the fact that most businesses across the industry will not be able to work at full capacity for another year or even more.

“We need a restaurant stabilization fund. We need long-term sustained support of this industry so that they are open for business... You’re talking about from 11 to 15 million employees in a trillion-dollar industry that pays 20 percent of trust taxes in many states.”

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