Michigan Businesses Expect Pandemic Struggles To Continue: Report

MICHIGAN — More than 30 percent of Michigan restaurant operators say it is unlikely they will still be in business in six months due to the economic impact of the coronavirus pandemic, according to a survey conducted by the National Restaurant Association.

The data, which is based upon surveys conducted in conjunction with the National Restaurant Association and the American Hotel and Lodging Association, was released Tuesday by the Michigan Restaurants & Lodging Association.

"It is fundamentally clear that the pandemic is decimating the hospitality industry in this state to a degree never seen or even imagined," MRLA President and CEO Justin Winslow said. "While it will take several years and a stable economy to reclaim the size, impact and opportunities produced by this industry, we have not yet reached the bottom.”

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Michigan businesses have struggled during the COVID-19 pandemic, in part due to the health restrictions put in place to help prevent the spread of the virus. Restaurants, for example, are prohibited from indoor dining until Sunday following the extension of an indoor dining pause announced last week.

The data released Tuesday puts the struggle felt by the restaurant business in numbers. Consumer spending at Michigan restaurants has been well below normal levels, with 80 percent of Michigan restaurant operators saying their total dollar sales in October was lower than it was in 2019. Overall, sales were down 25 percent on average, according to the survey data.

Most restaurant operators do not expect business conditions to improve in the coming months, according to the data, with 89 percent of Michigan operators expecting their sales to decrease from current levels during the next three months.

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Staffing levels at Michigan businesses also have been impacted, according to the data. While many businesses added back employees after an initial lockdown, staffing levels overall remain well below normal. Data in Michigan shows that 66 percent of restaurants are currently more than 20 percent below normal staffing levels.

Many restaurant operators are anticipating additional layoffs in the coming months, according to survey data, with 63 percent of restaurant operators expecting staffing levels to decline over the next three months.