Mass. restaurants need boost from industry relief bill
Many Massachusetts businesses have been hit hard by the coronavirus pandemic and resulting closures — the restaurant industry was dealt a particularly devastating blow.
According to the Massachusetts Restaurant Association, more than 90% of restaurants in Massachusetts were forced to lay off or furlough workers as sales plummeted. The average reduction in staff was by 87%, the association said.
Though 45% of restaurants said they offered takeout or delivery service, more than 211,000 restaurant employees were laid off or furloughed in the state.
Some restaurants have had to close their doors permanently.
Clearly, restaurants are in desperate need of help, even as the state reopens. It will be a long, hard slog back to solvency and healthy sales. Which is why it’s vital the restaurant relief bill working its way through the House be passed in its entirety.
The legislation both acknowledges the huge impact the coronavirus and social distancing restrictions have had on restaurants, and notes that “the preservation and fiscal stability of the restaurant industry is critical to the economic security and cultural vitality of the commonwealth.”
One provision calls for restaurants and bars with takeout and delivery services to add mixed drinks to go along with the beer and wine they are already allowed to sell. Part of Boston’s great dining scene are the creative mixologists at work behind the bar. It’s one thing to order favorite items to be delivered from a local eatery, but including a signature cocktail makes the prospect of ordering in that much more appealing.
And restaurants need every tool available to get more business. Those mixed drinks would be in sealed containers and customers are limited to 64 ounces per transaction.
But even as restrictions lift and eateries welcome back a limited number of socially distanced guests, they are not out of the fiscal woods yet, which is why the bill’s provision waiving late fees and interest on delayed meals tax payments is especially helpful to the beleaguered industry. The state needs tax revenue without question, but hard-hit restaurants need to be cut some slack as they get back on their feet.
Though the ability to operate with takeout and delivery menus has been key to keeping many establishments afloat, and some workers on payroll, it has come with a price — namely fees from third-party delivery companies. The bill would ensure that no third-party delivery service would charge a fee per online order more than 15% of the total price. This provision would remain in effect for 45 days after the end of the COVID-19 emergency.
Restaurants are major contributors to the Massachusetts economy, and the Legislature must do whatever it can to help this sector survive and thrive once more. Boston’s dining scene is a big attraction for visitors, and if we want to make it through this pandemic and land on our feet, the restaurant sector needs to regain its strength.
The bill received initial approval in the House Tuesday, and goes before a formal session Wednesday.