Colorado Restaurant Association says nearly 75% of restaurants will close within six months if capacity limits are not raised.
A Colorado Restaurant Association survey found that 73% of Colorado restaurant owners would consider closing their doors permanently if capacity limits are not increased within six months.
The restaurant impact survey showed that if indoor dining was again prohibited due to COVID-19, 24% of more than 175 restaurants would shut down immediately.
“No restaurant small, medium, or large can operate at 25%. It just doesn’t matter, because we build our (businesses) to be at 100%,” said Blake Street Tavern owner Chris Fuselier.
“Even at 50% capacity, 17% of restaurants in Colorado closed, so you can only imagine how difficult it is to restaurant at the current capacity limits.”
In recent weeks, a surge of coronavirus cases have continued to be reported throughout the state, which has shifted 27 of the state’s 64 counties to Safer at Home level orange, according to the states COVID-19 dial.
Level orange restricts indoor dining to 25% capacity or 50 people.
Sonia Riggs, the CEO of CRA says that they estimate hundreds of restaurants have already shut their doors permanently because of the financial hardship the pandemic has caused.
“We estimate that hundreds of restaurants have closed and thousands are on the brink (of closing). Further restricting on capacities or another shutdown would push many more over the edge,” she said in an email statement.
Throughout the summer months, the 175 restaurant owners that competed the survey said on average they lost 40% revenue this summer compared to last.
Seven percent of restaurant owners say revenue has decreased by more than 80% during the same time period, according to the survey.
Fuselier says his restaurant during the warm summer months saw a decrease in 60% of revenue.
As clientele continues to be sporadic and revenue continues to drop, many owners have needed to cut the size of their staff. Nearly 80% of restaurants say their staff is smaller this year than last.
Fifteen percent of restaurants reported that their staff size has decreased to at least half the size it was a year ago.
“I went from a staff of 100 to a staff of 12 to strictly do to-go orders, and when we were allowed to reopen our dining area, it went back up to 30,” Fuselier said.
Currently, the Blake Street Tavern has a staff of 60 people, which is much lower than a year ago, but if restrictions get more strict, Fuselier said he is going to have to let more people go.
“It just kills me to think I need to lay off people during the holidays, and so I’m just hanging on trying to give people some hours, but it’s taking a team effort to have everyone cut down on their hours so all of us can hang in there,” he said.
Riggs says although many restaurant owners are fearful about what might occur over the cold and snowy winter months, there is optimism that expanding and winterizing patio space will keep money coming in.
“Restaurants have consistently told us they need two things to survive: more cash and more capacity. Since no federal cash relief is on the immediate horizon, and indoor capacity is being further restricted, adding seats outdoors is the only option many of these restaurants have. It won’t be a silver bullet, but it will be a key difference for many,” Riggs said.
“In order to make that outdoor space usable for the winter, however, takes considerable resources that many restaurants simply don’t have after such a crushing year.”
Although some are optimistic about winterizing and adding patio space, Fuselier who invested $30,000 adding and winterizing an open tent, is skeptical about diners wanting to sit outside during the winter months.
“We shall see. We’ve never done this before, we have a tent that seats 130 people with plenty of distancing, but we just don’t know. Are people going to want to sit in the tent when it’s 35 degrees outside, but heated, or are they going to want to sit inside?” he said.
“We just don’t know what winter is going to bring us.”




