Economic Tsunami - Coronavirus is Killing Rhode Island’s Top Restaurants - The List Is Growing

GoLocal Business Team

Economic Tsunami - Coronavirus is Killing Rhode Island’s Top Restaurants - The List Is Growing

Dozens of RI's best known restaurants are closing
It is a growing economic tsunami. Restaurants in Rhode Island and nearby Massachusetts are closing by the day.  In the past week alone, some of the best-known restaurants in the area have announced their closure or that they are for sale.

The announcement of restaurants closing started in right after Rhode Island Governor Gina Raimondo closed down much of the state on March 16 under her emergency powers -- including restaurants. By March 25, Bravo Bistro in downtown Providence was among the first to announced it would close permanently. 

It was the first significant restaurant to announce it was closing.  It was quickly followed by Nick’s of Westminster and then the dominos started to fall.

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Bravo Bistro’s owners Joseph Martone and Kristen Destremps announced they were launching a GoFundMe account to support their staff.

Places like Bravo Bistro and Nick's on Westminster, which closed after just a year of operation, were the first wave. They were businesses who were struggling before the coronavirus, and the closures and lack of business support programs at the state or federal level devastated their businesses.

SEE BELOW: WELL-KNOWN RESTAURANTS THAT HAVE CLOSED

Popular Eleven Forty Nine closed in May
Dozens of restaurants across the state have since closed. The economic impact of the closures and downturn can be felt at fine dining like the award-winning Birch located downtown and is located just across from Trinity Rep. With Trinity, the Providence Performing Arts Center, and other smaller cultural venues closed for months, the future of many restaurants is in question.

Chris Tarro, the owner of the restaurant group Siena which operates three locations in Rhode Island — two are presently operating — took to social media this week to address the latest closures and posted:

 

 

Venus De Milo. Closing.
Birch. Closing.
Blackies. Closed.
Old Grist Mill. For Sale.
etc.etc.etc.

The type of restaurant doesn't matter. Nothing is safe.

Siena will survive but this is depressing. These are not poorly run businesses with bad food!

 

Two Impacts - Economic and Shared Experience

For the economy, the impact is devastating. More than 50,000 Rhode Islanders work in the hospitality industry. The restaurants are closing, the owners are losing their life's work and as a community, the state is losing those places that embody shared experiences. Presently, 100,000 Rhode Islanders are out of work and the majority of them worked in hospitality and retail -- another sector being hard hit. 

“This is not an isolated incident, we will see a number of restaurants and small businesses close throughout the remainder of this year, and with them, we lose a meaningful part of the character and friendliness of this state,” said Professor Leonard Lardaro of the University of Rhode Island.  “In other words, the loss to this state will by far exceed the pure monetary values involved.”

For those restaurants and other businesses that have been impacted but not closed the state has established a $50 million grant program. The Restore RI fund, which was announced on July 15, has to date provided $7 million in grants, with much of it targeted to the hospitality industry. 

 

The loss of outdoor dining will be a challenge
Biggest Challenge Lies Ahead

For many restaurants, the summer's outdoor dining has allowed them to "keep the lights" on by serving more than 50% of their customers. But as the summer turns to fall, restaurants will be faced with the loss of the revenue of much of its outdoor dining and resort to limited indoor seating and takeout.

The most difficult period is yet to come.


Restaurants Lost to Coronavirus - Sept, 2020

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