New Jersey Restaurant Industry 'Still Not Back To Pre-Pandemic Levels'

By Bob Pepalis | The Center Square contributor, The Center Square New Jersey

(The Center Square) – A New Jersey hospitality association has welcomed House passage of a bill to adds funds to the depleted Restaurant Revitalization Fund, which would help an industry a spokeswoman said has yet to return to pre-pandemic levels.

The Restaurant Revitalization Fund Replenishment Act of 2021, House bill 3807, would provide an additional $42 billion for the Restaurant Revitalization Fund. It gives priority to previous applicants who have not received a grant, according to a bill summary.

New Jersey had 7,792 restaurants that applied for the Restaurant Revitalization Fund after suffering severe revenue losses because of the pandemic. Many restaurants were shut down and capacity limits were in place for nearly a year, Amanda Stone, New Jersey Restaurant and Hospitality Association Government Affairs director, told the Center Square. “However, only 3,086 applicants received funding before the RRF was depleted nationwide,” she said.

NJRHA was pleased to see the House pass HR3807 last week, she said. “The restaurant industry – especially in New Jersey – was one of the hardest hit and our restaurant owners and operators are still facing issues from revenue loss to workforce shortage and inflation,” Stone said. “RRF funding would help the industry, which is still not back to pre-pandemic revenue levels.”

"Restaurant owners and operators have done a great job navigating the ever-changing mandates and regulations despite the past few difficult years," she said. "They’ve made improvements and found new ways to serve customers, including outdoor dining."

More than 30,000 New Jersey jobs were saved by the first round of RRF funding, according to a survey released by the NJRHA in January. This helped 100% of those restaurants that got grants stay in business, the National Restaurant Association said.

“The January survey was taken during the peak of the omicron variant surge," Stone said. "While the industry is doing better than it was a few months ago, we remain committed to ensuring the path forward is successful for our restaurant community."

Nearly 60% of restaurant operators who didn’t get grants don’t think they will stay in business beyond the pandemic without one, the survey said. Of those operators who applied but didn’t get funding, 100% said a future grant would enable them to retain or rehire employees.

An additional 45,000 New Jersey workers could be saved with a full replenishment of the RFF according to the National Restaurant Association analysis, the NJRHA said in its release.

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