NEW ORLEANS — Billions of dollars will soon be up for grabs through a federal program aimed at keeping restaurants open, but what many in the hospitality industry need right now are workers.
The Mayor of New Orleans is urging owners of restaurants, bars even food trucks to apply for aid through the Restaurant Revitalization Fund. That money is meant to make up for past losses from the pandemic, but it could also alleviate the current staffing shortages in many restaurants.
“There are shortages everywhere, as far as making wages and just being profitable as a business,” said Lance Fleming, regional manager at We Dat’s Chicken and Shrimp.
Friday was the first day since the COVID-19 outbreak began that restaurants and bars in New Orleans could operate at full capacity. For almost a year, the hospitality industry worried about getting enough customers. Now, it’s worried about having enough staff.
Fleming believes the labor shortages are connected to the pay of employees deemed essential, but whose wages may say they’re expendable.
“It’s a wage game but it’s also an act of appreciation, an act of respect. At any sense, we want to make sure our employees, especially at We Dat’s, that we respect them enough to give them and show them what they’re worth,” Fleming said.
New Orleans Mayor LaToya Cantrell believes there’s a way to make that happen.
Starting next week, restaurants, bars or any business that makes at least one-third of their sales from food or drinks, can apply to the Federal Restaurant Revitalization Fund. It’s meant to keep restaurants open by covering their losses and expenses from the pandemic.
The ceiling is $10 million per business. With the city in a deficit, the fund’s money is basically money up for grabs.
“This is going to be like the paycheck protection program. Every restaurant in the country is going to be going after the dollars. These are not dollars the city can go get for you. This is something a business owner has to go get for themselves,” said Jeff Schwartz from the city’s office of economic development.
“This is the largest bucket of resources that will be made available to our restaurant industry coming from the federal government,” said Mayor Cantrell.
Mayor Cantrell said the $28.6 billion dollars in the new fund can help businesses recover their losses from the pandemic, but the money can also go to offering better pay in the industries that define New Orleans.
“Now is the time for people to be paid what they’re worth, this is an opportunity to dignify our people who have been the backbone of this industry.”
To make that possible, restaurants must first apply for the money.
The application process starts Monday (May 3), but the first 21 days of the program will be reserved for minority or female-owned businesses. General applications will begin after that.
Qualifying businesses would not have to repay the money if it’s spent for approved reasons before March 11, 2023.