According to a widely cited 2016 study by JP Morgan Chase, half of all small businesses have enough cash on hand to survive for only 27 days without new money coming in the door. The bar and restaurant industry tends to be particularly vulnerable. The average small service business has enough money on hand to survive just 19 days without any income. 

Brick-and-mortar businesses like restaurants tend to particularly struggle when it comes to saving up this kind of so-called buffer capital because they generally have to maintain high overhead costs. Rent, debt, fixtures, taxes, payroll, service contracts, utilities, insurance and more all add up to a monthly overhead budget that is very difficult to scale back during difficult times. While a business can take drastic steps, like laying off staff and physically turning off the lights, most of its bills still have to be paid.  It is now estimated up to 70% of bars and over 50% of restaurants will not reopen!

thoughts?

Very scary. Independent restaurants in the USA have a trend of 90% of them closing in the 3 years of business. The pandemic and lockdown will accelerate this for many. A true “mom and pop” joint that might be your favorite coffee shop, donut shop, or sandwich place is really struggling, and may be doomed.

Yes, this is a very real concern @Tomcal and @SoCal

I’ve been surprised at how many appeals for donations I’ve received from successful and long-established restaurants in San Francisco and Los Angeles.