Restaurants and Bars Seek Immediate action to Mitigate the Impact of January Storms
Today independent restaurants and bars sent a letter to Oregon leaders requesting financial support to address the significant economic crisis resulting from the January 2024 storms. Closures are catastrophic to the business operations of independently owned restaurants, bars and food carts, putting them at risk of permanent closure without immediate assistance from local and regional governments.
These businesses are integral to creating vibrant communities, directly employing more than 185,000 people and contributing significantly to the state's economy. Every dollar spent in an Oregon restaurant contributes $2 to the state's economy.
The recent winter storms have left many businesses grappling with staggering revenue losses averaging $23,000 per location that not only jeopardize the immediate survival of these businesses but also have profound effects on the incomes of hardworking employees, with an average wage loss of approximately $1800 during the storm.
Considering the substantial role that the restaurant and bar industry plays in Oregon's economy, these losses have far-reaching implications for the economic well-being of the state. Independent restaurants anchor neighborhoods and communities across Oregon, serving as tourist attractions, marketers of Oregon products, supporters of schools, and the first to step up to feed neighbors in times of crisis.
“We are all trying our best to be resilient and support our employees, pay bills, & minimize product loss during this time. We have lost revenue in a historically slow season for our industry.“ said Carlo Lamagna, Chef/Owner Magna Kusina and Magna Kubo. “The lack of assistance independent restaurants and bars have received since March 2020 and an increase in natural disasters have created a constant strain. We provide jobs for employees, value in travel for our respective counties, and support for other local businesses. It’s time for our local and state government to invest as much in us as we do in our communities.“
Independent restaurants and bars in Oregon urgently call for the following actions:
Suspend Payroll Tax and Business Taxes:
Suspend payroll tax and all city and state business taxes and licensing fees for restaurants, bars, and food carts with fewer than 100 employees for 90 days.
Commercial Eviction Moratorium:
Place a moratorium on commercial evictions after January 18, 2024, for a period of three months.
Creation of Relief Fund:
Create a relief fund specifically designed to assist independent restaurants, food carts, and bars with fewer than 100 employees who have been forced to close for more than two days, providing grants, low-interest loans, or other forms of financial assistance.
Investment in Infrastructure:
Allocate resources to ensure proper road maintenance during winter storms, including the use of de-icer, salt, sand, and an increased number of trucks on the road.
Collaboration with Utility Companies:
Work closely with local utility companies to manage the urban canopy, reducing power outages caused by downed trees during storms. Demand improved response times to outages to minimize disruptions to operations.
“Local leaders need to accept that climate change is real, not just in lip service but with investment in infrastructure, equipment and strategic planning. Small businesses, restaurants and bars in particular, are already in precarious situations due to their very thin margins, compounded by COVID, reduced consumer spending, and rapidly increasing costs of doing business. We cannot absorb the hit of having to be closed for this long because roads can’t be traveled and public transportation has come to a halt. If quick and efficient action isn't taken soon, we will lose tourism income which would be a devastating blow especially to Portland and the communities of the Columbia River Gorge.” said Jessica Silverman and Sean O’Connor, co-owners of KEX, Pacific Standard + The Sunset Room in Portland. It is time for city and state leaders to acknowledge that extreme weather events are not an anomaly. Immediate action and investment in infrastructure are crucial to navigate these challenges. Independent restaurants and bars in Oregon are ready and eager to engage in further discussions and collaboration to address these critical issues.
Without immediate assistance, neighborhood restaurants and bars will not survive. City and state officials must act swiftly to ensure the resilience of our communities.
Grab the Storm One Pager to support your advocacy outreach.