New York City could permanently lose as many as half of its restaurants and bars within the next six months, according to an audit released by State Comptroller Thomas DiNapoli.
The New York Post reports that the audit reveals the impact of the coronavirus on the city’s restaurant industry. Over the next six months, a third to one half of all city bars and restaurants could shutter, DiNapoli noted in the audit. He found that 150,000 jobs are at stake.
According to the report, close to three-quarters of restaurant industry employees already have found themselves jobless during the pandemic. New York City restaurants just returned to indoor dining on Wednesday with capacity levels capped at 25%.
“The industry is challenging under the best of circumstances, and many eateries operate on tight margins,” DiNapoli said. “Now they face an unprecedented upheaval that may cause many establishments to close forever.”
The audit indicates that the restaurant industry provided 317,800 jobs in 2019. It paid out $10.7 billion in wages and made more than $27 billion in taxable sales last year.
But by April, the report notes that the industry dropped its number of jobs to 91,000 in the height of the pandemic. A push to help expand outdoor dining helped bring employment numbers up to 174,000 by August, the audit reports.
By the first week of September, the audit shows that 43% of restaurants and bars have obtained outdoor seating permits. Of that number, half are located in Manhattan, a little over 40% in Brooklyn and Queens, 30% in The Bronx, and 20% on Staten Island. Restaurants located in minority communities have been impacted the most by the pandemic, according to the report.
But as cooler weather approaches and the possibility of a second coronavirus wave hitting in the winter looms, DiNapoli said the state and city need to “continue to be creative and bolster the industry.”
“The city’s decision to extend outdoor dining year-round to help keep restaurants afloat is a step in the right direction along with opening for indoor dining,” he said.
He recommended the city issue clear guidance on reopening. He also suggested the city work with the state to help provide grants and loans to help restaurants stay open.
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