• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem

1

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind

2

Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock

3

Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
LifestyleCoronavirus

Chefs and restaurateurs argue new SBA loans don’t protect the beleaguered restaurant industry

By
Rachel King
Rachel King
Down Arrow Button Icon
By
Rachel King
Rachel King
Down Arrow Button Icon
April 6, 2020, 2:30 PM ET
Add Fortune on Google for similar content.

This article is part of a Fortune Special Report: Business in the Coronavirus Economy—a look at the impact of the pandemic on more than 50 industries.

With more than half of humanity on lockdown and advised to stay home and practice social distancing, the restaurant industry has taken a severe beating amid the collective effort to curb the spread of COVID-19. Takeout and delivery services are still available options, while seated dining is out of the question for the foreseeable future, and some local authorities have eased up restrictions on liquor sales to soften the blow.

But the vast majority of bars and restaurants are simply not able to make the immediate switch to takeout and delivery, and even those that do are falling short of the resources to keep staff on payroll. As a result, millions of hospitality workers are filing for unemployment, and chances are that even when restaurants are given the green light to reopen, many of them never will, and those jobs will not be there again.

Prominent chefs and restaurateurs of the Independent Restaurant Coalition—formed in March as a grass-roots movement to secure benefits protections for more than 500,000 independent restaurants nationwide and 11 million restaurant workers who were impacted by the coronavirus pandemic—issued a letter on Monday addressed to congressional leaders, asking them to take more urgent actions with a long-term recovery approach in mind.

Specifically, the coalition’s leaders argue that the $2.2 trillion stimulus legislation under the recently passed CARES Act does not meet the unique needs of the restaurant industry—a sector that contributed approximately $1 trillion to the national economy last year. Not only does the new small-business loans program hinder most restaurants from even qualifying, as they can’t remain open (and keep employees on payroll or rehired by at least June 30), but current funding limits under the program wouldn’t help restaurants stay open past the first month.

“There are so many things we have to think about now in terms of the future of our industry,” said Kwame Onwuachi, chef at restaurant Kith and Kin in Washington, D.C., during a media conference call on Monday. “Once it becomes time to reopen, there are going to be huge obstacles in front of us.”

Coalition members are looking for additional legislation and recovery funds to not only ensure restaurants currently shuttered are able to reopen but stay open through the remainder of 2020 and 2021 as the economy slowly recovers and communities return to normal rates of socialization.

The coalition’s call for action comes following reports that more than 10 million Americans have filed for unemployment in the past several weeks, with more than 6.6 million filing just last week.  The U.S. Department of Labor’s Bureau of Labor Statistics reported that two-thirds of jobs lost in March came from the hospitality sector—and more than half were food and beverage jobs. The department also noted that the drop nearly wiped out all the gains in the restaurant business from the past two years. 

“We’re not looking for a bailout,” said Tom Colicchio, chef and founder of Crafted Hospitality, in New York City, which oversees management for Colicchio’s Craft, Riverpark, Temple Court, Craftsteak, Heritage Steak, and Small Batch restaurants. “We’re looking to get back to work when we can get back to work.”

Colicchio, who immediately shuttered all of his restaurants in mid-March when New York State announced the closure of all nonessential businesses, stressed that he and all of his employees understand the shutdown and the need to shelter in place. But the real concern for the industry, he explains, is making sure financial protections are set up not only to reopen but to then stay open.

The major point of contention is the Small Business Administration’s new Paycheck Protection Program (PPP), set up to dole out forgivable loans intended to help small businesses pay their employees during the coronavirus crisis. Small businesses and sole proprietorships can borrow up to 2.5 times their average monthly payroll from the previous year through the PPP. Although the application period opened up on April 3, the program is already fraught with misinformation and miscommunications as many banks say they weren’t provided with guidance in time as to how the program actually works.

“The PPP is a flawed program when it comes to businesses already shut down, which most of us already have,” said Naomi Pomeroy, restaurateur and chef at Beast in Portland, Ore., adding that from the restaurant managers she has spoken with who have kept up with takeout and delivery, those establishments are still only seeing about 10% of their previous revenue rates and are only employing 10% of their previous workforce.

The coalition is asking Congress to not only increase the amount of PPP funding from 2.5 times monthly payroll, but to extend the loan period to three months after reopening. “We don’t know when we’re going to reopen, and when we reopen, we’re certain to be less busy than we are right now,” Pomeroy said. All three chefs reiterated that while 2.5 months of payroll might fund the staff initially before reopening, it will take restaurants at least three months on average to reopen. Thus, the PPP funding as it stands now would not be enough to keep staff employed after opening, resulting in layoffs all over again.

“It’s a nightmare the way it’s set up,” Pomeroy said.

The coalition is also asking that the next stimulus package include two new tax rebates: the first rewarding businesses based on how many people they employ, and the second ensuring restaurants can maintain rent rates and leases through recovery. The letter also asks for the creation of a restaurant stabilization fund—worth $50 billion to $100 billion in reinvestments that would help fund rehiring employees—and a mandate that insurers extend business interruption coverage, often employed during natural disasters, to include the public health shutdown owing to COVID-19.

More coronavirus coverage from Fortune:

—Millions won’t be able to pay their bills this month. What financial experts advise
—What small businesses applying to the SBA’s Paycheck Protection Program need to know
—The worst part of losing 10M jobs in 2 weeks? The real number may be much higher
—Why the U.S. is changing its mind on coronavirus face masks
—Americans face hunger crisis as SNAP benefits are harder for some to get
—Tax-exempt student loan assistance is now law. It’s time to make it permanent
—Hospitals are running low on the most critical supply of all: oxygen
—PODCAST: Two health care CEOs on why coronavirus tests and vaccines are the ammunition needed to fight COVID-19
—VIDEO: 401(k) withdrawal penalties waived for anyone hurt by COVID-19

Subscribe to Outbreak, a daily roundup of stories on the coronavirus pandemic and its impact on global business, delivered free to your inbox.

About the Author
By Rachel King
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Lifestyle

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

Latest in Lifestyle

The Top Fitness and Wellness Gifts (2026): For the Busy Gym-Goer in Your Life
HealthFitness
The Top Fitness and Wellness Gifts (2026): For the Busy Gym-Goer in Your Life
By Christina SnyderJuly 22, 2026
8 hours ago
cinerama
Arts & EntertainmentHollywood
Hollywood’s iconic Cinerama Dome to reopen under deal with Sony, Alamo Drafthouse
By The Associated PressJuly 22, 2026
10 hours ago
An Ebola healthcare worker is assisted putting on protective equipment in a treatment center.
HealthEbola
Nearly 1,000 people dead from Ebola outbreak in Congo amid health worker strike
By The Associated Press, Prosper Heri Ngorora and Constant Same BagalwaJuly 22, 2026
12 hours ago
clark
North AmericaMedia
Ryan Clark found out he was fired live, mid-broadcast, on NFL Live as ESPN undergoes first major layoffs in 3 years
By Joe Reedy and The Associated PressJuly 22, 2026
15 hours ago
ls
Commentarybooks
Confessions of an award-winning AI memoirist — the ‘slop’ debate isn’t really about good writing, and you know it
By Luke StoffelJuly 22, 2026
17 hours ago
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
C-SuiteFood and drink
Panera founder and Cava chairman Ron Shaich bets $100 million on Level99, bringing his restaurant industry playbook to entertainment
By Catherina GioinoJuly 22, 2026
21 hours ago

Most Popular

The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
Real Estate
The millennial generation has split, new Fed research shows: Those over 35 are edging toward boomer-style wealth, while everyone else falls behind
By Nick LichtenbergJuly 22, 2026
12 hours ago
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
Success
Mark Cuban says he has the solution to growing income inequality, and it's to reward every employee—from CEO to janitor—with company stock
By Sasha RogelbergJuly 20, 2026
2 days ago
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
AI
Mathematicians grapple with a ‘very rapid and very unsettling change’ as AI cracks yet another century-old problem
By Eva RoytburgJuly 21, 2026
2 days ago
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
Cybersecurity
OpenAI says its AI models secretly broke out of a secure test environment and hacked into AI company Hugging Face in order to cheat on an evaluation
By Jeremy Kahn and Emily ForliniJuly 21, 2026
1 day ago
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
Success
Despite a $156 million contract, Knicks star Jalen Brunson still calls his parents for financial advice any time he makes a big purchase
By Emma BurleighJuly 21, 2026
2 days ago
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
Economy
Scott Bessent casually says the U.S. has more than $1 trillion in gold—and that it doesn’t matter for the dollar
By Sasha RogelbergJuly 22, 2026
9 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.