Our Open Letter to Governor Kate Brown & Oregon Policy Makers
* FOR URGENT CONSIDERATION *
November 15, 2020
To: Governor Kate Brown, President Peter Courtney and Speaker Tina Kotek
Re: The COVID Outbreak in Oregon – Restaurant Recommendations for Immediate Action
In March, when SARS-CoV-2 first made its presence known in Oregon, many of us closed our doors voluntarily to keep the public safe. We turned to you in search of support and guidance to navigate the crisis. Although our industry is one of the largest employers in the state - we employ nearly 9% of the workforce - our calls went unanswered. Now as our dining areas are once again ordered closed, we urgently need your attention and support, without it over 75% of Oregon’s 10,456 bars and restaurants are in danger of closing permanently.
Restaurants and bars cannot survive with to-go operations only. A survey of independently owned restaurants indicates that the loss of indoor dining results in a revenue loss on average of 81.75% thus forcing closures and mass layoffs. Additionally, our businesses don’t operate like hardware stores, we can’t just flip a switch and walk away. Each time we close we lose perishable inventory and we have to maintain payroll to properly shut down the business. In March, closures resulted in payroll expenses and inventory loss on average of $40,000 per location. Here we are again, closing without a safety net, only this time it is worse. After eight months of operating with reduced capacity we have no cash reserves and are saddled with crippling debt. Those of us who were able to secure Payroll Protection Program funds, have exhausted them. Without financial support now, many of us will be forced to close forever.
When restaurants close, the entire supply chain is disrupted, from root to roofline. Sixty five percent of the revenue from independently owned restaurants and bars recirculates in the local economy. In addition to the nearly 200,000 Oregonians who are employed by restaurants and bars, our closure directly impacts bakers, fishers, butcher and Oregon’s 34,000 small farms. It also harms the people who deliver the products we use, keep our buildings operational, and care for our children while we are at work. Each and every person who draws a paycheck directly or indirectly from this industry is once again thrown into panic with concerns about how they will pay their rent and utilities, feed their children, purchase medicine or even pay for a COVID test. Many of these individuals have still not received payment from their unemployment claims filed in March.
To be clear, we understand and agree that swift action must be taken to ensure the safety of the community. Our industry is among the most highly regulated in health and safety, and we have quickly implemented and enforced enhanced procedures for safety and sanitation. We have spent hundreds of thousands of dollars on PPE, sanitizer, signage, and software to modify our spaces and processes to keep our employees and guests safe.
We need a pragmatic mitigation plan that simultaneously supports the health of our guests, employees, and the livelihoods of the people and businesses that are the very heart of our communities. And right now, we need immediate financial assistance from the State of Oregon. Without it our industry will perish.
We are ready, willing and eager to help devise that plan and are fully committed to preserving Oregon’s $9.7B restaurant economy. We cannot wait for Federal assistance, we need our leaders in Oregon to take action now.
We respectfully suggest the following:
Emergency measures to remedy unemployment department shortfalls
When the “pause” goes into effect on November 18, the phone lines and servers will once again be overwhelmed. It is critical that workers receive Unemployment Insurance benefits for the duration of the pandemic response and that there are no delays in processing their claims, this includes waiving the waiting week. Additionally, individuals who are unable to work due to having or being exposed to COVID-19 must have the ability to file an expedited Disability Insurance claim
Implement legislative changes before year end
The legislature must provide tools to small businesses including but not limited to the ability to sell cocktails to go, a moratorium on commercial evictions and the ability to default on or end commercial leases without having their personal assets seized.
Provide immediate financial relief
Convene a Coronavirus Economic Advisory Council and engage members of the food & beverage industry to craft short and long term strategies for recovery which must include: creating a distressed restaurant fund, to provide financial assistance for restaurants, bars, food carts and tasting rooms; deferral of all city and state Business Taxes and Licensing Fees for Small Businesses for nine months with no interest or penalties; grant funding for companies with fewer than 100 employees to provide financial assistance specifically to meet the needs of employer-sponsored health care coverage for employees.
Improve testing and tracing statewide
Increased testing with consistent and thorough contact tracing has been proven to control the spread of the virus. Yet, individuals have been challenged to find tests, and in some cases have been denied tests because they’ve been tested once in the past three months. Tests must be readily available, and affordable.
As an industry we are resilient, passionate, creative and committed. We’ve led our community through hardship before and we can again, but we can’t do it alone.
In solidarity,