Restaurant tax receipts dropped 71% across the city during the height of the pandemic in New York, leaving a massive budget hole from an industry that contributed $26.9 billion in taxable sales last year, according to a new report.
Data out Thursday from state Comptroller Thomas DiNapoli show just how intertwined state finances are with the health of the restaurant industry, which accounts for 15% of all taxable sales.
“Off the bat, it doesn’t surprise me for a second. What surprises me is how this is new information to anyone,” said Roni Mazumadar, owner of Rahi in the West Village and Adda in Long Island City. The report, he said, “puts in a broader perspective how crucial the restaurant industry is to the economic engine of the city, state and federal government.”
The report illustrates how the restaurant industry’s struggles are affecting the economy. Responsible for one in 12 private-sector jobs in the city, restaurants employed 317,800 people and paid $10.7 billion in wages last year, the report says. The industry is nowhere near that level of strength now—the sector is at just over half of its pre-pandemic employment levels, leaving more than 100,000 people out of work, the report shows.
“I think it was clear to everyone—it was clear to the business owners and the industry—how much of an impact we have for the city in terms of employment,” said Jeffrey Garcia, president of the state Latino Restaurant, Bar and Lounge Association. Restaurants also make the city’s streets more vivid, he said. Not until restaurants are operating at full capacity will they hire back their full staff, he added.
The report also highlighted how little workers in the industry are paid. The average salary is $33,700, among the lowest of any sector. A previous comptroller report broke the state’s workforce into 10 industries including transportation, professional services, education, construction and manufacturing, and it found hospitality was the lowest-paying sector.
Meanwhile the industry itself is shrinking. A third of restaurants and half of bars were closed as of Sept. 23, according to the report. That’s even though 43% of restaurants made use of outdoor-dining provisions in the city, the report says.
“Comptroller DiNapoli’s shocking new report confirms with data the economic devastation that Covid-19 has inflicted on these vital small businesses,” said Andrew Rigie, executive director of the New York City Hospitality Alliance, an industry group. “The comptroller’s report sends a critical message that must be heard by policy-makers and New Yorkers at large.
“In order to save our city’s greater economy,” Rigie said, “our restaurant industry must be at the core of its recovery.”
"industry" - Google News
October 02, 2020 at 01:56AM
https://ift.tt/36ou2az
Economy, state finances tied to restaurant industry recovery, report shows - Crain's New York Business
"industry" - Google News
https://ift.tt/2RrQtUH
https://ift.tt/2zJ3SAW
Bagikan Berita Ini
0 Response to "Economy, state finances tied to restaurant industry recovery, report shows - Crain's New York Business"
Post a Comment