Relief for New York City’s Restaurants Offers Little Comfort for the Future

On March 22, New York State’s PAUSE order went into effect, shuttering non-essential businesses statewide, cancelling “non-essential gatherings,” and urging individuals to limit travel and recreational activities.  This order will remain in effect until at least May 28 (and likely extend further) for regions that have not yet met the initial metrics required to enter phase one of the State’s reopening plan.  This includes New York City, where a two-month closure of dining rooms has had a particularly devastating effect on the city’s restaurant industry.

In April, a survey conducted by the National Restaurant Association predicted that the restaurant industry would lose over $80 billion in sales due to COVID-related restrictions.  In New York City, this impact has been keenly felt in the permanent closure of landmark eateries, and the bankruptcy of major chains. Even if New York City is able to begin reopening in June, as predicted by Mayor Bill DeBlasio, dining rooms will be among the last businesses to reopen under New York State’s phased plan.

To address this impact, Mayor DeBlasio this week signed into law seven new measures designed to provide relief for tenants, businesses and, particularly, restaurants.  For food services in particular, these new laws included various limits on charges imposed by third-party delivery services, and extends a moratorium on collection of café fees.  “Our city’s restaurants are struggling during these challenging times,” said Lorelei Salas, Commissioner of the NYC Department of Consumer and Worker Protection. “We are proud to provide some relief so they can operate their open-air cafes without the usual fees and to protect them from high fees as they continue to deliver food to us.”

While such measures no doubt provide some measure of comfort for the City’s burdened restaurant industry, it is by no means clear what the post-pandemic market will offer these businesses.  A recent survey by the James Beard Foundation found that only one in five restaurants were confident of surviving the pandemic closures.  And of course, reopening requires a public willing to eat out again.  With social-distancing requirements likely to remain in effect even after reopening, even the dining experience itself will change.  IT remains to be seen whether the industry, and public, can adapt.