(Photo: Stock Unsplash)
Aug. 3, 2020 By Christian Murray
Four in five bars and restaurants in New York City were unable to pay their full rent in July, according to a new study.
The NYC Hospitality Alliance released results from a survey today that found that only 17 percent of establishments were able to pay their full rent for July. The survey was based on the responses from 471 NYC restaurants, bars, nightclubs and event venues between July 15 and 28.
The survey revealed that 37.4 percent didn’t pay any rent in July. Meanwhile, 36.6 percent said they paid some, with the remainder uncertain whether they would be able to pay.
The results are not pretty, restaurant advocates say, and come despite the mayor’s attempts to help businesses survive–given the ban on indoor dining and various social distancing restrictions that are in place.
The mayor has expanded outdoor dining and provided businesses with the ability to sell to-go drinks.
De Blasio praised his outdoor dining program on Monday and said it has helped keep many businesses afloat, bringing nearly 80,000 workers back to their jobs.
But the NYC Hospitality Alliance said that the mayor’s programs were not enough to offset the revenue lost by the restriction on indoor dining and various other requirements.
Furthermore, federal programs such as the Paycheck Protection Program may have helped many businesses but much of that money has now been spent.
“Restaurants and nightlife venues are essential to the economic and social fabric of our city, but they are struggling to survive,” said Andrew Rigie, executive director of the NYC Hospitality Alliance.
The survey revealed that about 10 percent were able to negotiate their lease, while about 28 percent were in “good faith negotiations.” Approximately 62 percent of respondents said they had not renegotiated it.
There are signs that some landlords are working with some businesses.
The survey found that nearly 30 percent of landlords had waived some rent due to the pandemic. Of those landlords, 74 percent had waived half the rent or more.
The rent has forced many businesses to close—unable to keep up with high fixed costs. Currently there is a moratorium on evictions for commercial tenants, which is set to expire Aug. 5.
For a copy of the survey, click here.
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12 Comments
why did Cuomo wait to open our economy??…we had our covid peak on April 7th….we should have opened up back in June…Sweden never closed and their numbers are better than ours…sad!!
That’s a great point, Trump’s response has caused the worst economy and joblessness in history. We need to open up!
Blue states – Cuomo correctly opened the economy in phases because he didn’t want to be like the red stares of Florida and Texas whose reckless openings have caused those states to surpass NY and NJ in infections and now on there way to surpassing NY and NJ in deaths. Just because it’s open doesn’t mean people will engage in any business transactions oh gullible one.
Mac is wrong again death rates in red states lower than ours
Nice that he defends Cuomo the granny killer
Our death rate is among the highest because of Cuomo shoving the elderly into nursing homes
Even his fellow dems are fed up with him
But Andrew Cuomo says you can get work in an essential industry
You know
Like go to medical school and run up lots of debt !
Hashtagger- And Trump said “yosaminite”. “It is what it is”
I’d like to see Sunnyside Post do a similar survey locally to see how our small restaurants, bars, and businesses believe they will fare over the next 6-12 months.
Well they can not get evicted. So some places will just stay open as long as they could during the pandemic and outdoor dining. And then just pack up and leave without paying rent with the money they made. Tenants are doing the same. Not paying a dime and collecting benefits. Saving up to move out or stay until the city comes up with a rent freeze or more financial assistance. Those that are working and paying rent are finding it unfair and asking landlords for a rent reduction. Some are threatening to leave if there is no discount despite being able to afford it. Realtors tell me its a renters market and for many free housing.
LL- You make it sound as if restaurants are making a killing with deliveries and outside dining.,I work at one of the busier restaurants and can tell you from my experience you don’t know what you’re talking about.
Yea…you can save your sob story for the landlord or the press. Would you tolerate someone ordering a meal and telling you that times are “tough” so they are not planning on paying the bill in the end? What about an IOU? Most likely you would kick them out and if they already ate call the cops on them if they walked out. Perhaps post it online for sympathy and attention.
@LL- You’re the only on posting a sob story. An irrational one at that.
isnt the eviction order lifted tomorrow? LOL