Michigan Restaurant Industry Loses $491 Million in Sales, 72,000 Jobs

Veritas in Downtown Jackson opened last fall.  The restaurant decided to remain closed during the Governor’s ordered shut-down.

(April 2, 2020 8:51 AM) In Michigan, the restaurant industry lost an estimated $491 million in sales and more than 72,000 jobs during the first 22 days of March.

According to a survey released by the Michigan Restaurant and Lodging Association,  62% of restaurants laid off employees.

Restaurants and bars across the state are dealing with Gov. Gretchen Whitmer’s executive order that closed doors on March 16 until at least April 13.

The closure was put in place, according to Whitmer, to “mitigate the spread of COVID-19, protect the public health, and provide essential protections to vulnerable Michiganders.”  

Survey Results

•  Eighty-four percent of Michigan restaurant operators say their total dollar sales volume during the period from March 1 to March 22 was lower it was during the same period in 2019.
• Nine percent of operators reported higher sales, while 7 percent of operators say their sales were about the same as they were during the same period in 2019.
• On average, restaurant operators reported a 43 percent decline in sales during the period from March 1 to March 22.

Michigan restaurant operators took a number of actions during the first three weeks of March, in response to the COVID-19 outbreak:

• Sixty-two percent of restaurant operators laid off employees. Forty-seven percent anticipate doing more of this during the next 30 days.
• Sixty-one percent of operators cut employee hours.
• Sixty percent of operators reduced their hours of operation
• Forty-four percent of operators temporarily changed their business model to off-premises only.
• Forty-one percent of operators temporarily closed their restaurant.
• One percent of operators permanently closed their restaurant, and 9 percent anticipate permanently closing their restaurant within the next 30 days.