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DATE | 2020-07-02 |
FROM | Ruben Safir
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SUBJECT | Subject: [Hangout - NYLXS] Bars and resturants not reopening... maybe ever..
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wsj.com New York City Delays Indoor Dining Indefinitely Stephanie Yang 6-7 minutes
Struggling New York City bars and restaurants were dealt a blow Wednesday as officials delayed the start of indoor dining, citing concerns about the spread of the coronavirus.
Gov. Andrew Cuomo said during a press conference that indoor dining will be postponed indefinitely due to rising infection rates in other states, and a lack of compliance and enforcement of social distancing within the city.
The third phase of reopening for the city is scheduled for July 6, which had originally included limited indoor capacity for restaurants, along with the restart of some personal care services such as nail salons.
The rest of the citys reopening scheduled for Monday will continue as planned, Mr. Cuomo said. Elsewhere in the state, indoor dining has resumed as the areas moved onto advanced phases of reopening.
This is a New York City-specific issue, Mr. Cuomo said, adding that he would like to see stabilizing infection rates in other parts of the country, as well as better social distancing, before reintroducing indoor dining. It will be postponed until the facts change and it is prudent to open.
Gov. Andrew Cuomo said he would like to see stabilizing infection rates in other parts of the country and better social distancing before reintroducing indoor dining. Photo: Byron Smith/Getty Images
James Mallios, owner of Amali Restaurant in Manhattan said he invested $20,000 in safety renovations and another $10,000 in physical upgrades in preparation for indoor dining. He said he also made two recent hires and was processing the paperwork for another 10-15 employees before the announcement Wednesday.
Im kind of gobsmacked by this, Mr. Mallios said. I was predicating those decisions on the schedule that the state published."
Mr. Mallios said the location of his restaurant in a high-traffic area only allows for about two seats outside. He is considering demolishing a skylight in a back room of the establishment to accommodate open air seating, but is worried that the reopening requirements will change again.
George Constantinou, who runs three restaurants in Brooklyn and one in New Jersey, said he was nervous about the addition of indoor dining, since many of his former employees have been reluctant to return to serve tables indoors.
I am a little relieved that its postponed so we can focus on outdoor dining," Mr. Constantinou said.
Since the city started allowing outdoor dining, his restaurants have added about 10-15 tables at each location, Mr. Constantinou said, boosting sales by about 70% compared with delivery and takeout.
On Wednesday, Mayor Bill de Blasio said that the city will expand outdoor seating in lieu of adding indoor capacity, including outreach efforts beyond the 6,600 restaurants that have already introduced outdoor dining. It is the time to double-down on outdoor dining, he said.
According to a survey from the NYC Hospitality Alliance, 36% of restaurants and bars in New York City didnt pay rent in June. Photo: Spencer Platt/Getty Images
Andrew Rigie, executive director of the NYC Hospitality Alliance, a nonprofit association that represents restaurants and nightlife establishments, said while the industry understands the need for caution, restaurants and bars also will require financial assistance for rent and reopening costs, as well as more outdoor dining options to help offset their losses.
Many were hoping to reopen but there are also many concerns, said Mr. Rigie. The only thing worse than restaurants not opening right away would be for them to reopen and then shut down shortly thereafter if theres a spike in Covid.
According to a survey from the organization, 36% of restaurants and bars in the city didnt pay rent in June. Out of 509 owners and operators surveyed, 90% paid half or less.
Government officials have expressed caution on the pace of reopening as overall Covid cases continued to climb, and other states reverse or pause reopenings. The U.S. has more than 2.6 million confirmed Covid-19 cases according to data from John Hopkins University, more than a quarter of the global count. The death toll exceeded 127,000 as of Wednesday.
Within New York, Covid-19 hospitalization rates have reached the lowest five-day average since the beginning of the pandemic, Mr. Cuomo said. The state has announced 14-day quarantine requirements for travelers coming from 16 other states with rising infection rates, an increase from eight states last week.
If you reopen too fast, whats going to end up happening is, youre going to have to close, Mr. Cuomo said. That is going to be the worst situation.
Write to Stephanie Yang at stephanie.yang-at-wsj.com
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