LANSING, MI (WKZO AM/FM) – The Executive Director of the Michigan Licensed Beverage Association says the governor and the legislature must come to an agreement this week to provide the necessary funding to save the food and beverage industry.
MLBA Executive Director Scott Ellis says they are disappointed that the Michigan Department of Health and Human Services order that banned dine-in service was extended, especially since before the most recent shutdown, he says the MDHHS data indicated that bars and restaurants did not significantly contribute to the spread of COVID-19 in Michigan.
Ellis says according to a recent survey conducted by the MLBA, 50 percent of bars face permanent closure. On average, bars are still spending $7,000 per week on operating costs while losing out on an average of $12,000 per week in potential revenue.
In addition, only 15 percent of bars are open for any type of outdoor service and roughly 55 percent are open for carry-out.
The National Federation of Independent Business (NFIB), expressed disappointment in the governor’s decision to extend the current three week “pause” by another 12 days through December 20.
“Promises of $100 million in state aid to the impacted businesses are appreciated, but in the context of the economic damage caused by these closings it is a drop of water in Lake Michigan,” said NFIB State Director Charlie Owens. “Even the more robust federal rescue loans and grants will not roll back the tide of coming small business failures and bankruptcies from the extended closures.”
Owens said that it has been eight months since the onset of the COVID-19 health crisis and many small businesses are still struggling to survive while doing everything they can to help their employees and adjust business operations.
“Nationally, one-in-five (20%) of small business owners report that they will have to close their doors if current economic conditions do not improve over the next six months,” said Owens.
