DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Briefing and discussion of a Council Consideration Request (CCR) to examine the feasibility of creating a Food & Beverage Worker Relief Program.
SUMMARY:
Councilman Trevino initiated a Council Consideration Request (CCR) for examination of creating a Food & Beverage Worker Relief Program to provide grants to businesses which will keep employees current on payroll and provide necessary living expenses to Food and Beverage employees to maintain employment during the pandemic.
BACKGROUND INFORMATION:
The COVID-19 pandemic has caused widespread unemployment and led to the shuttering of businesses of all sizes across the country. As food & beverage businesses attempt to rebuild, the health and safety restrictions in place make it difficult to make up losses while retaining employees. Well-known local establishments have reported that they are losing long-time employees who cannot afford to wait out the existing COVID-19 restrictions.
According to the Bureau of Labor Statistics (May 2019) report, employees that fill occupations in the Food & Beverage industry earn an average of $10.82 an hour in San Antonio. This wage is less than $15 an hour, and less than the national average of $11.31 hour. The current wage not only makes it difficult to pay rent and other household expenses, but this issue is further compounded when the number of jobs is simultaneously decreasing due to closures. In December 2020, the National Restaurant Association reported nationally 1 in 6 restaurants were closing due to the impact from COVID-19. Given the loss of jobs due to the pandemic and the history of low wages, this CCR proposes the creation of a Food & Beverage Relief Program.
ISSUE:
This CCR is intended to review existing funds including CARES funds or General Funds and identify additional grant opportunities for Food & Beverage businesses to keep employees on payroll and provide necessary living expenses to affected employees to maintain housing during the pandemic. The Relief Program should target minority, independent locally owned businesses.
ALTERNATIVES:
This item is only for briefing purposes.
FISCAL IMPACT:
There is no fiscal impact associated with this briefing.
RECOMMENDATION:
Staff recommends referring this item to the Economic and Workforce Council Committee for further consideration.