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Restaurant industry on the brink in Austin and nationally as 110,000 establishments shut down

More than 110,000 restaurants—or nearly 1 out of every 5 establishments—have shut down nationally since the COVID-19 pandemic started, according to a new survey.
The National Restaurant Association sent a letter to congressional leaders on both sides of the political aisle this week seeking urgent federal support after nine months of "economic free fall" resulting from capacity limits and extended closures.
"In short, the restaurant industry simply cannot wait for relief any longer," said Sean Kennedy, executive vice president of public affairs for the restaurant group, in his letter to Congress. "Efforts in Washington to find the 'perfect' solution are laudable, but the lack of progress in the meantime has led too many operators to give up on the government and close down for good."
The national restaurant group attempted to quantify the extent of the industry damage by sharing findings from a membership survey. On average, sales revenue is down 36% for most full-service restaurants, with more declines expected the next three months.
Additionally, more than half of those surveyed expect to furlough or lay off more employees. And these are established eateries that are shutting down, averaging 16 years in business, according to the National Restaurant Association.
"And for every month that passes without a solution from Congress, thousands more restaurants across the country will close their doors for good," Kennedy said in the letter.
In Austin, the problem is exacerbated by a competitive dining market and high upfront costs to do business. Eater Austin has tracked approximately 40 closures to various food industry businesses since COVID-19 forced the cancelation of SXSW.
The list of closures includes iconic Austin options, including Shady Grove, Threadgill's and Magnolia Cafe on Lake Austin, as well as popular spots such as Fricano's Deli and Blue Dahlia's original spot in East Austin.
The impact locally is also seen in the latest U.S. Bureau of Labor Statistics economic data. While Austin has a 5.1% unemployment rate—lower overall than the 6.9% rate statewide—there are nearly one-quarter (22.2%) fewer leisure and hospitality jobs in Austin right now compared to this same time last year, a far greater industry impact than the rest of Texas (14.7%).
Representatives of the Greater Austin Restaurant Association did not return requests from Austonia to provide more context about the impact locally. Have a story about the restaurant industry you want to share? Tell us here.
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Popular
(Moriah Wilson/Instagram)
Austin police have charged Kaitlin Marie Armstrong, a local cyclist, for the murder of Moriah "Mo" Wilson.
Wilson, a rising star in the gravel and mountain bike community, was found dead with gunshot wounds inside an East Austin home on the night of May 11 when she was in town for the weekend Gravel Locos race in Hico, Texas.
Police believe Wilson was having a relationship with a man Armstrong was also in a relationship with. The man, another gravel cyclist, Colin Strickland, has since issued a statement on the murder.
In his statement, he said he had a brief romantic relationship with Wilson in October 2021 before he resumed his relationship with Armstrong, but that he remained friends with Wilson. "There is no way to adequately express the regret and torture I feel about my proximity to this horrible crime. I am sorry, and I simply cannot make sense of this unfathomable tragedy.
NEW: Austin professional cyclist Colin Strickland has just released a statement about the murder of cyclist Moriah Wilson, clarifying his relationship with her and expressing “torture about my proximity to this horrible crime.” pic.twitter.com/KnIna3mWrE
— Tony Plohetski (@tplohetski) May 20, 2022
Wilson, a 25-year-old Vermont native living in Colorado, had won a slew of races becoming a fan favorite. She had just become a full-time racer this year.
Anyone with information on this crime can contact Austin police at 512-974-TIPS or contact Crime Stoppers anonymously at 512-472-8477.
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Kelly said the planned homeless housing hotel suffered months of damage. (Mackenzie Kelly)
Austin has added 24-hour security to the city-owned Pecan Gardens property, which will be converted into supportive housing for people exiting homelessness, after the former hotel was found with months of damage and vandalism May 5.
The building, which was broken into and stripped of copper and had people illegally sleeping inside of it, has been secured, Kelly said in a Friday press conference. Kelly said the city confirmed a measure to implement 24-hour security, including updates every 60 days until the property opens up as supportive housing.
"We cannot let this happen to any vacant city-owned property ever again," Kelly said. "This blatant act of disregard and criminal behavior will not be tolerated in our community."
The city bought the former hotel in August 2021 for $9.5 million with plans to renovate the property into a 78-unit supportive housing property. Those 55 or older that are experiencing chronic homelessness can qualify to live at the site once it is completed in late 2022-early 2023.
While the council was set to discuss a $4 million deal with Family Eldercare to begin converting the property Thursday, Kelly pulled the item for a later executive session due to security concerns. But the council did approve an item to authorize city leaders to begin negotiating other renovation contracts.
"I want to thank my colleagues for pumping the brakes on this contract and realizing that we owe the community not only an apology, but reassurance that the protection of the assets the city owns is vital to the success of achieving our intended goals," Kelly said.
When the building was found vandalized May 5, Kelly, who presides over the district containing the property, said damage included:
- Damage spanning all three floors of the building and is in nearly every room.
- The entire hotel was stripped of copper.
- Destroyed washers, dryers, air conditioners and electrical wiring.
- People sleeping at the hotel without permission.
On Tuesday, Austin’s Homeless Strategy Officer Dianna Gray apologized and said there was no security due to a delay in processing the request.
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