Half of NYC'S 24,000 bars and restaurants could close for good in the next six months which will wipe out 150,000 jobs, state report finds
A saddening new state report is predicting that nearly half of New York City's 24,000 bars and restaurants could shut permanently in the next six months as a result of the COVID-19 pandemic and slow response from the city to reopen.
State Comptroller Thomas DiNapoli released the audit on Thursday. While there is no official tally for how many have closed permanently already, the report predicts between a third and half will shutter in the next six months which will cost 150,000 people their jobs.
Restaurants in New York City are currently limited to only allowing 25 percent of their normal capacity which makes it impossible for them to turn a profit. Bars, meanwhile, are still forbidden from opening.
The industry is up in arms about the rules, which are harsher than anywhere else in the state despite the fact that New York City commercial rent is the highest in the state.
China Chalet, a well known party restaurant near Wall Street, has closed permanently
Jules Bistro, a jazz restaurant in the East Village, has also been forced to close permanently
Eliza's Local on Saint Marks Place in the East Village has been forced to close its doors
Italian restaurant Porsena has also been forced out of business
Noble Tree Coffee on the corner of St Marks Place and 2nd Avenue, is also permanently closed
Jebon, a sushi restaurant on Saint Marks Place, is also closed for good
The audit found that of in 2019, there were 23,650 bars and restaurants in New York City. As many as 12,000 could close in the next six months if no other help is given to businesses from the federal government, it claimed.
'Estimates of the potential permanent closures of City restaurants and bars over the next six months to a year have generally ranged from one-third to one-half of all establishments that existed before the pandemic.
'At the high end, that could result in a permanent loss of nearly 12,000 of the City’s restaurants and bars, and nearly 159,000 industry jobs, although the opening of new restaurants would mitigate some of these losses,' the report reads.
The report also revealed that the vast majority of restaurants across the city are small businesses with fewer than 20 employees.
Most of the jobs (192,500) are in Manhattan, 51,700 are in Brooklyn and 49,100 are in Queens. The average restaurant worker salary was $33,700 in 2019.
The two areas with the most restaurants are midtown and lower Manhattan - together, they make up 40 percent of the city's jobs.
The theater district had the highest employment rate for restaurant workers.
But with Broadway closed until January 2021 at least and as office workers continue to work from home, they are all at risk.
Restaurant jobs plummeted in March, when they were all forced closed, and have gradually increased since April but are nowhere near pre-pandemic levels and as many as 150,000 could be wiped out
NYC is dragging behind the rest of the state and the world in restaurant reservations because they have not been able to reopen as quickly
Chinatown is also at high risk due to the sudden drought in tourism.
'The restaurants and bars in these areas face special challenges due to the declines in tourism, office employees working on-site, and some residents relocating to second homes outside the City,' the report read.
In 2019, restaurant sales contributed to 15 percent ($26.9billion) of all the taxable sales in the state.
DiNapoli recommends in his report that the state and city give clearer guidance to bars and restaurants on when and how they can expect to bring back more people. He also said it was vital that they received additional help from the government.
'It’s important that the state and city 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.
Restaurant owners on Wednesday told DailyMail.com that while they were excited about finally being able to welcome back diners, 25 percent capacity would do nothing to help them.
Diners inside Keens Steakhouse on Wednesday on the first day of indoor dining in New York City. Restaurants can operate at a 25 percent capacity
Some restaurants reported that diners were more eager to sit outside than indoors. The weather remains warm in New York. Above, Serafina on the Lower East Side
'We appreciate these endeavors - they will be helpful - next year, if the city recovers.
'When we have widespread al-fresco dining outside it'll add appeal as tourism recovers.
'But to think 25 percent, at this late stage, four months after the rest of the state when we pay more per square foot than any other region, after all our PPP funds have been used... we'll come nowhere close to preventing hundreds into thousands of restaurants from closing.
'It could have been prevented. That's the tragedy,' Mark Fox, who owns four Manhattan restaurants, said.
Chef Daniel Boulud of Daniel on the Upper East Side said he was happy to welcome diners back but that he wished it had happened 'two months ago'.
'It's a mix of anxiety and excitement for sure, I am very excited for the staff to be back to work of course.
'I may see the 25 percent lasting longer than we thought though because of resurgence in different countries of ,' he said.
Boulud said it was 'impossible' to run a business with such a limited capacity.
Among the more than 1,000 restaurants that have already closed permanently is Jules Bistro, a French Jazz restaurant in the East Village, and Mission Chinese, a famously expensive eatery in the Lower East Side.
Mission owner Danny Bowien announced the closure on Instagram.
'We have had to fight to save our businesses and jobs while making the case for our very existenc.
'We all desperately want restaurants to open — to really open — but we cannot insist on this out of obligation, without regard to the health of our customers and our employees,' he said.