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West Central Michigan News

Thursday, May 2, 2024

Lowered-capacity indoor dining may not be enough to help struggling Michigan restaurants

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Michigan restaurants have been closed for indoor dining since Nov. 18. | Pixabay

Michigan restaurants have been closed for indoor dining since Nov. 18. | Pixabay

As of Feb. 1, Michigan restaurants are allowed to reopen indoor dining, but with such tight restrictions and so late in the game, it may not be enough to keep many going.

Restrictions include 25% capacity -- or 100 guests, whichever is less -- a limit of six people per table and tables must be spaced 6 feet apart. If an employee gets COVID-19, the restaurant must shut down until a deep cleaning is performed, according to Michigan.gov.

Restaurants have been operating with outdoor dining and takeout only since Gov. Gretchen Whitmer ordered dining rooms to close on Nov. 18 of last year.

The National Restaurant Association reports national restaurant sales are $240 billion under projections from last year, and 110,000 restaurants have closed either temporarily or permanently, according to Bridge Michigan.  California, Michigan, New York, Minnesota, Illinois -- all states with dining restrictions -- recorded the highest job loss.

In December, Michigan had already lost 205,000 leisure and hospitality jobs, according to data from Bridge Michigan.

Kevin Gudejko, CEO of Ann Arbor-based Mainstreet Ventures restaurant group, reports that since the indoor dining ban, his Michigan-based restaurants have dropped from approximately 2,000 employees to 40.

Bridge Michigan reports the state’s COVID-19 positivity rate has been declining since November and is currently at 6.1%, but state officials are cautious about reopening indoor dining, expressing concerns about emerging variants and vaccine distribution.

Restaurant owners were hoping for a higher-capacity allowance, like the 50% capacity the governor allowed during the first reopening in June of last year, but it looks like they’ll have to wait.

Owner of Grand Rapids restaurant Kitchen 67, Johnny Brann Jr., said he is excited to have at least some of his customers inside, but it’s not going to be enough.

“It is going to be not that much more helpful as far as the financials go,” he told Bridge Michigan. “We’ll still be struggling to pay our bills and maintain our business models. We’re geared for 100% occupancy.”

In Colorado, which has the same 25% capacity limit, the restricted reopening hasn’t been enough to pull half of the state’s restaurants out of danger, according to Sarah Riggs, Colorado Restaurant Association president and CEO.  Restaurants need to be allowed to run at 75% capacity to have a chance of survival, she told Bridge Michigan.

A Michigan Restaurant & Lodging Association member survey showed that while indoor dining capacity is restricted to 25%, approximately 17% restaurants planned not to reopen.

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