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Restaurants nationwide are being forced to alter or roll back reopening plans, and around 100,000 operators being forced to shut down dine-in service for a second time because of spikes in coronavirus cases, industry experts say.
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One problem is that rent is still due and a growing number of restaurants are having a hard time paying up, Sean Kennedy, executive vice president for public affairs at the National Restaurant Association, told FOX Business. The organization represents more than 380,000 restaurant locations nationwide.
Not only are restaurants expected to pay this month, but they are also faced with previous rent obligations as well.
"Countless restaurants that secured rent forbearance for three or four months back in April are looking at unchanged balance sheets in August and a tidal wave of back-due payments," Kennedy said.
RESTAURANTS STRUGGLE WITH RENT UNDER CORONAVIRUS RESTRICTIONS IN NEW YORK CITY
While restaurants can control costs by limiting operations, simplifying menus and keeping fewer people on the payroll, rent is one thing that is out of their control, Kennedy said, adding that restaurants only run on around a 6% margin and typically have merely 16 days of cash on hand.