Data shows minority-owned businesses are having the toughest time.
Vaccinations, stimulus checks, and warmer weather are fueling a resurgence in the restaurant industry, and the data proves as much.
A recent survey of 8,943 small business owners between March 27 and April 5 showed that 35 percent of restaurants couldn’t cover rent in April, a 28-point improvement from March, according to online referral network Alignable. Among the small business categories listed, only retailers (31 percent) fared better than restaurants. In another survey taken in late March, 42 percent of restaurant operators said they don’t expect a full recovery until 2022 or later, which was second-lowest only to gyms at 38 percent.
In March, a survey of 8,705 small business owners revealed that 63 percent of restaurants and bars couldn’t pay rent—the highest amount among the small business categories. Another Alignable survey taken in mid-March showed that 52 percent of restaurants and bars were “highly concerned” about staying afloat through the end of the second quarter.
On average, 31 percent of small businesses couldn’t pay rent in April, with Oklahoma, Kentucky, New Jersey, and Hawaii suffering the most and Vermont, Minnesota, Montana, Oregon and Arkansas suffering the least. Fifty-three percent of minority-owned businesses couldn’t pay rent compared to 31 percent of nonminority-owned businesses.
“Many of these industry trends are very promising and it’s beyond encouraging to witness what's happening,” Chuck Casto, head of public relations for Alignable, said in a statement. “That said, the thousands of small business owners in these industries are still fighting every day to keep their businesses afloat. In other words, most small business owners are far from running a victory lap.”