More than two out of every five restaurants in Indiana are at danger of closing because of the COVID-19 pandemic, a Ball State University study preliminarily found.
Sotiris Hji-Avgoustis, a professor of hospitality and food management in the Miller College of Business at the state university in Muncie, discovered that 41% of restaurant owners surveyed in the Hoosier state had financial problems so severe because of coronavirus they could soon close. The coronavirus pandemic has proven to be so devastating that nearly half of the 300,000 Hoosiers who normally work in restaurants have been unemployed or stuck with drastically reduced hours.
“These are very dire times for the industry,” Hji-Avgoustis said. “If Indiana officials decide the state must reimpose restrictions to mitigate the spread of the pandemic — which may include reducing hours or further limiting seating — many restaurants will close for good. Most can’t survive on just providing take-out.”
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The National Restaurant Association estimates the restaurant industry lost $120 billion nationwide amidst lockdowns during the first three months of the pandemic and is on track to lost $240 billion by year's end. The trade association estimates more than 100,000 restaurants could close nationwide this year.
Hji-Avgoustis found restaurants that owners often bootstrap with credit cards, personal savings and second mortgages contribute $13 billion to Indiana's economy every year.
He also found the hospitality industry, which normally generates $752 billion nationwide a year, is the hardest hit sector in the Hoosier state with staffing levels at about 70% during the pandemic.
The full study is slated to be released early next year.
A look at businesses that closed in Northwest Indiana in 2018
Recap: A look at businesses that closed in Northwest Indiana in 2018
Some have been called 2017 the "retailpocalypse" because of the stunning number of brick-and-mortar stores that have been closing across the country.
More businesses were shuttered in the Region and south suburbs in 2018. Find out which closed their doors in 2018 here:
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