GOLDEN VALLEY, Minnesota — The pandemic has delivered a crushing year to the hospitality industry, but with the stroke of the presidential pen, nearly $30 billion in restaurant relief is coming as part of the American Rescue Plan.
The stimulus carves out nearly $28.6 billion for food trucks, restaurants, bars, and other vendors.
Unlike the paycheck protection program, this money doesn't need to be paid back; they are non-taxed grants.
Restaurant groups are capped at $10 million and individual venues capped at $5 million. Publicly traded companies with more than 20 locations are not eligible, according to the American Restaurant Association.
“I've pivoted so many times, I'm dizzy,” said Stephanie Shimp, co-owner of the Blue Plate Group, which closed two locations in the last year and lost roughly half of their revenue and employees. “That thought of just pure forgiveness or a grant … I can feel the stress in my neck relax and my shoulders drop a little bit,” said Shimp.
Though some worry if it's enough, considering the entire restaurant and bar industry lost $35 billion in total revenue between February and April last year.
"Huge tool for recovery but not the 'end-all, be-all' to get these folks back. We’re looking at a multi-year recovery," said Benjamin Wogsland, a spokesperson with Hospitality Minnesota.
Brent Frederick, chief manager of Jester Concepts, which operates restaurants like P.S. Steak, Parlour and Borough, said this stimulus is a welcome lifeline for a teetering industry.
“The new stimulus will help us sleep at night knowing that we can keep employing people and we still have restaurants to get through the pandemic. Without it, I think it's very uncertain,” said Frederick.
Between the stimulus, the vaccine, and the weather, it's starting to trigger thoughts of previous summers, at least for Shimp.
“I can't wait to be at the State Fair, hot and sweaty, shoulder to shoulder with my neighbor, and if you spill that beer on me, I don't care,” Shimp said.