Actions

Report: 33% of Michigan restaurant operators believe they'll close for good within 6 months

Industry expects 10,000 restaurants to close in next 3 months
Posted at 8:09 AM, Dec 15, 2020
and last updated 2020-12-15 12:27:58-05

(WXYZ) — About 1/3 of Michigan restaurant owners say they don't believe they'll be in business by mid 2021, according to research from the Michigan Restaurant and Lodging Association (MRLA).

The MRLA released the research, which tracked the economic impact of the COVID-19 pandemic, and is based on surveys conducted with the National Restaurant Association and the American Hotel and Lodging Association.

Related: Here is a list of outdoor dining options in metro Detroit

According to the MRLA, about 5,600 restaurant operators in Michigan say it is unlikely they'll be in business within the next six months. That equals 33% of the state's restaurants.

The research also found that 2/3 of hotels report they will only be able to last about six more months at current occupancy and revenue levels, and more than half (52%) of hotel owners say they are in danger of foreclosure.

“It is fundamentally clear that the pandemic is decimating the hospitality industry in this state to a degree never seen or even imagined. 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," MRLA President and CEO Justin Winslow said in a release.

Winslow is urging leaders in Lansing and Washington D.C. to pass stimulus packages.

The research also found that 89% of restaurant operators expect to see sales decrease over the next three months and 48% said they are considering temporarily closing their restaurant until the COVID-19 pandemic passes.

Restaurants were forced to stop indoor dining in mid-November and it's expected they'll remain closed in the near future, even as other businesses begin opening back up.

Additional Coronavirus information and resources:

View a global coronavirus tracker with data from Johns Hopkins University.

See complete coverage on our Coronavirus Continuing Coverage page.

Visit our The Rebound Detroit, a place where we are working to help people impacted financially from the coronavirus. We have all the information on everything available to help you through this crisis and how to access it.