Governor Andrew Cuomo announced last Wednesday that since he shut down indoor dining in New York City restaurants on 17 March, he would finally allow them to serve customers inside… but with the limited capacity of 25 percent starting on 30 September.
This came just six days after a group of over 350 NYC restaurants, claiming “irreparable harm” from the lockdowns, joined together and filed a $2 billion class-action suit against both city and state officials.
Considering the list of restrictive rules and regulations imposed on restaurants, the financial pain restaurants are suffering will persist. Some of the rules include:
- A temperature check on everyone entering the restaurant
- Contact information for tracing
- No bar services
- Restaurants must close by midnight
- Restaurants must publicly post their indoor dining capacity and phone numbers to report violations
- Face coverings must be worn when not seated and other safety protocols required
The City of New York “will provide a team of 400 Enforcement Personnel to ensure compliance.” And in the Stasi State of America, “Patrons who observe violations can report issues by calling 833-208-4160 or by texting ‘VIOLATION’ to 855-904-5036.”
The governor also said if there isn’t a rise in infection rates by 1 November, he “might” allow NYC restaurants to increase to 50 percent capacity.
Bad Times Now
Even restaurants outside of New York City are struggling to survive the governor’s enforced restrictions of 50 percent capacity, mandatory masks for all wait staff and any customer not seated, and required five-foot barriers between tables if social distancing is not possible.
According to a 14 August CNBC report, “One in three New York restaurants won’t open after the pandemic.”
The restaurant business has been one of the most important to the New York State economy and culture. According to the National Restaurant Association, in 2018, there were over 50,000 eating and drinking establishments in the state. More than 856,000 people were employed, and revenues topped $50 billion.
According to the 11 September Wall Street Journal, NYC restaurants alone lost almost 200,000 jobs between February and April this year. As of July, only about 70,000 of those jobs returned.
Particularly hard hit are the full service, sit-down restaurants that have been closed since mid-March, which mostly are locally owned. Unemployment at these restaurants was almost twice that of fast-food venues primarily owned by large corporations and which offer limited services and poorer quality food.
TREND FORECAST: With people flooding out of New York City, office occupancy rates at 10 percent, hotel occupancy rates at 37 percent, transit ridership down 75 percent, no neon lights shining bright on the locked down theater district and “Restaurant Row” empty… the world’s most exciting tourist destination without excitement or tourists… the draconian City and State COVID Restrictions will continue to destroy restaurant, hospitality, retail, entertainment, trade show, sports and other business sectors large and small.
As NYC goes deeper in debt, public services will decline. When eviction restrictions are lifted, the homeless population will rise, and, so, too, will crime rates, which we forecast in our 21 April article, “CRIME ON THE RISE DURING THE GREAT LOCKDOWN.”