DEPARTMENT: Economic Development Department
DEPARTMENT HEAD: Alejandra Lopez
COUNCIL DISTRICTS IMPACTED: City-wide
SUBJECT:
Briefing and discussion for development of a grant program to provide financial assistance to small businesses in the hospitality industry impacted by COVID-19.
SUMMARY:
On October 6, 2020, 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. This briefing will include a proposal for such a program, expanding eligibility to small businesses in the hospitality industry.
BACKGROUND INFORMATION:
The COVID-19 pandemic has caused widespread unemployment and led to the shuttering of businesses of all sizes across the country. The National Restaurant Association surveyed restaurants in November 2020 and results revealed that 87% of full-service restaurants averaged a 36% drop in revenue, and that 17% of restaurants nationally, or 110,000 businesses, closed permanently or long-term. 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.
In January 2019, a study prepared by Trinity University (Dr. Richard V. Baxter and Dr. Mary E. Stefl) evaluated the economic impact of San Antonio's hospitality industry, which includes restaurants and catering, lodging, entertainment and arts, and transportation businesses. The report revealed that in 2017, the industry included more than 140,000 employees. A majority of individuals work in the food and beverage sector.
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