Operations

25%-30% of independent restaurants could close, Texas Restaurant Association warns

The shutdowns could cost 1 million jobs, according to the association.
empty restaurant
Photograph: Shutterstock

More than a quarter of the  independent restaurants in Texas will be forced to close if demand continues to free-fall at the current rate, eliminating 500,000 restaurant jobs just in that state, the Texas Restaurant Association (TRA) warned today.

Suppliers will also suffer, with another 500,000 jobs likely to be killed at vendor companies, according to research from the association.

On a nationwide basis, 18% of working Americans have already been laid off or had their hours cut, according to an NPR/PBS NewsHour/Marist poll.  

The TRA concluded from its data that 25% to 30% of independents will be closed if the current traffic trajectory continues.

“With more than 50,000 restaurants in Texas, this will change the culinary scene and business environment in every community across the state, drive significant unemployment, and create a massive financial deficit for cities and towns that rely on the tax revenue of these establishments,” the association said in a statement.

Meanwhile, restaurants in areas from coast to coast are closing because of the drop in orders. Many states have already required eating places to discontinue dine-in service and limit operations to takeout and delivery.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Technology

Why this POS company believes it can dominate the market for Asian restaurants

Tech Check: Chowbus has won over thousands of Asian operators by offering tech that speaks their language, literally. It just raised $81 million to keep expanding.

Financing

Get the restaurants ready for what may come

The Bottom Line: We're about to find out if Burger King's years-long efforts to improve the operations of its restaurants will keep customers that marketing brings in.

Emerging Brands

This Taiwanese restaurant group hopes to build a national chain in the U.S. specializing in elevated Thai food

Inspired by the success of Din Tai Fung, TTFB Restaurant Group has launched Very Thai in Los Angeles, with two more brands to follow.

Trending

More from our partners