city of San Antonio


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File #: 21-3181   
Type: Staff Briefing - Without Ordinance
In control: Economic and Workforce Development Committee
On agenda: 4/22/2021
Posting Language: Briefing and update on the Hospitality Grants Program to support businesses during the COVID-19 pandemic. [Alejandra Lopez; Assistant City Manager and Interim Director, Economic Development]?
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DEPARTMENT: Economic Development


DEPARTMENT HEAD: Alejandra Lopez


COUNCIL DISTRICTS IMPACTED: City-wide


SUBJECT:

Briefing and update on the Hospitality Grants Program that provides grants to businesses during the COVID-19 pandemic.


SUMMARY:

This briefing will provide an update on the Hospitality Grants Program approved by City Council to provide additional support to small businesses in the hospitality industry during the COVID-19 pandemic.



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 San Antonio, a study completed by Trinity University (Dr. Richard V. Baxter and Dr. Mary E. Stefl) in January 2019 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.

To mitigate the issues of COVID-19 citywide, City Council adopted the Resiliency & Recovery Plan in June 2020 providing approximately $42.7 million in Small Business Support. These efforts included: $32 million for grants for micro businesses and non-profits, $2.6 million for arts grants, $1.9 million for personal protective equipment, $950,000 for outreach eng...

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