OUR IMPACT IN YOUR COMMUNITY
Adapt, Evolve, Survive
The American Nightlife Association is dedicated to making an impact in your community and across the nation by supporting innovation and continued growth. At the end of 2019, there were more than 657,000 food and beverage locations, including 60,000 drinking establishments in the U.S., per the Bureau of Labor Statistics, totaling 6 percent of all domestic businesses.
Where are business concentrations that are at risk in an economic downturn?
COVID-19 STATISTICS
Job losses:
- 8 million restaurant industry employees have been laid off or furloughed since the beginning of the outbreak. (National Restaurant Association)
- Restaurants laid off, on average, 91 percent of their staff (this includes restaurants that have completely closed). (James Beard and Independent Restaurant Coalition)
- 61 percent of restaurant operators don’t think existing federal relief will prevent more layoffs. (National Restaurant Association)
- Most brewers have laid off at least 80 to 90 percent of staff. (Brewers Association)
- 16 percent of operators said that rehiring would be one of the biggest challenges when they open again, especially if unemployment benefits seem more secure than coming back to work at doomed businesses. (James Beard and Independent Restaurant Coalition)
Sales losses:
- Breweries have lost more than 70 percent of sales. (Brewers Association)
- Businesses in the coffee and snack segment reported losing 73 percent in sales during the first 10 days of April. (National Restaurant Association)
- Only 20 percent of restaurants in cities affected by mandatory restaurant closures are certain that delivery and takeout can sustain business until normal operation resumes. (James Beard and Independent Restaurant Coalition)
Loans and Debt:
- 80 percent of restaurant owners applied for small business loans through the PPP. At least 57 percent have applied for small business grants and 44 percent have applied for small business loans. (James Beard and Independent Restaurant Coalition)
- However, recent data from the Small Business Administration revealed that 44 percent of the $349 billion PPP loans went to only 2 percent of recipients.
- 56 percent of independent restaurants have at least $50,000 in new debt as a result of COVID-19. (James Beard and Independent Restaurant Coalition)
- 65 percent of respondents to the Beard survey were women and 67 percent were people of color.
- Some $300 million of the $350 billion in available funding went to at least 75 publicly traded companies, some with market values of $100 million and above, according to an Associated Press investigation. The President’s Economic Support Council is notably almost large chains and fine dining establishments
- Many large restaurant chains have borrowed multi-million-dollar funds up to a maximum of $10 million, taking advantage of a loophole that allows larger businesses with fewer than 500 employees per location to apply for the stimulus loans, thus taking up most of the funds. In some cases the loans were more than twice as large as payrolls.
Source: Surveys conducted by the National Restaurant Association, a partnership between the James Beard Foundation and the Independent Restaurant Coalition, and the Brewers Association .
Reopening Dates and Capacity Limits
| State | On-Premise Reopen Date | Capacity Throttle | Number of Restaurants and Bars |
|---|---|---|---|
| Alaska | April 24, 2020 | 25% Capacity- Indoor | 1,485 |
| Tennessee | April 27, 2020 | 50% Capacity | 11,693 |
| Georgia | April 27, 2020 | 10 people per 500 square feet of public space | 18,403 |
| Oklahoma | May 1, 2020 | Six feet social distancing sets capacity | 7,067 |
| Texas | May 1, 2020 | 25% Capacity- Indoor | 48,064 |
| North Dakota | May 1, 2020 | 50% Capacity | 1,736 |
| Iowa | May 1, 2020 | 50% Capacity | 6,285 |
| Utah | May 1, 2020 | Tables (of six or less) six feet apart | 5,264 |
| Louisiana | May 1, 2020 | Outdoor seating at 25% capacity with no tableside service. | 9,533 |
| Montana | May 4, 2020 | 50% capacity | 2,831 |
| Nebraska | May 4, 2020 | 50% Capacity | 4,113 |
| Florida | May 4, 2020 | 25% indoors | 41,336 |
| West Virginia | May 4, 2020 | Outdoor dining only | 3,291 |
| South Carolina | May 4, 2020 | Outdoor only with 8 feet distancing and 8 people limit | 9,669 |
| Missouri | May 4, 2020 | Tables must be six feet apart. Table limit is 10 people (most other states is six) | 11,200 |
| Nebraska | May 4, 2020 | 50% Capacity | 4,113 |
| Mississippi | May 7, 2020 | 50% Capacity | 4,881 |
| South Dakota | May 8, 2020 | Six feet social distancing | 1,878 |
| Nevada | May 9, 2020 | 50% Capacity | 5,980 |
| Arkansas | May 11, 2020 | 33% Capacity | 5,288 |
| Indiana | May 11, 2020 | 50% Capacity | 12,196 |
| Alabama | May 11, 2020 | Six feet social distancing | 8,620 |
| Arizona | May 11, 2020 | Six feet social distancing | 10,281 |
| Ohio | May 15, 2020 | Outside only, inside starting May 21st | 22,547 |
| Oregon | May 15, 2020 | Social distancing, 10pm curfew | 10,456 |
| Virginia | May 15, 2020 | 50% of outdoor seating only | 15,507 |
| Wyoming | May 15, 2020 | Social distancing; some counties already open | 1,338 |
| Idaho | May 16, 2020 | 50% Capacity or less to ensure six feet distancing | 3,385 |
| Kansas | May 18, 2020 | 50% Capacity | 5,328 |
| New Hampshire | May 18, 2020 | Outdoor dining only with six feet distancing | 3,178 |
| Maine | May 18, 2020 | 50% Capacity and 10 feet table distance | 3,227 |
Importance to Economies
The travel and tourism sector currently accounts for 10.4% of global GDP.* Hospitality generates revenue for local economies directly when tourists spend money in hotels, restaurants and entertainment venues. It also helps economies indirectly because tourists purchase retail goods, pharmacy items and locally made souvenirs and crafts. In addition, tourism can stimulate the building of infrastructure such as roads and public transportation. Hospitality also supports jobs in arts and culture industries, keeping theaters and arts festivals thriving.
Importance to Employees
The hospitality industry accounted for 313 million jobs worldwide, which translates to 9.9% of total employment and 20% of all global net jobs created in the past decade.* 72 million jobs were projected to be added to the tourism and hospitality sector over the next 10 years, and the industry itself will grow 10%.† This sector provides a rewarding career track for professionals by offering a range of job opportunities, from event planner to general manager to facilities asset manager and beyond. Entrepreneurs start their own bars, restaurants and boutique hotels.
Importance to Customers
Hospitality provides essential services (i.e., lodging and food) for travelers and locals, for necessity, leisure or luxury. Hospitality is a major factor in every vacation and business trip, and is thus important to individual customers and to businesses. American Millennials spend 44 percent of their food budgets eating out instead of cooking in.‡ Serving customers well is the primary aim of hospitality businesses, which should focus on creating high-quality environments and services and on hiring excellent employees who treat customers with warmth, empathy and professionalism.
INDUSTRY SUBSECTORS
Of the 25+ subsectors that make up the travel and tourism industry, three sectors–accommodations, air travel and food services–account for more than half of total output.
1: Accommodation
This subsector is the largest of the three (in terms of total output) and accounts for almost a fifth of total travel and tourism-related spending. In 2017 travelers spent more than $300 billion on traveler accommodations. This sector supports nearly 2.1 million U.S. jobs. This hospitality sector deals with providing places for people to stay. These range from basic lodgings intended for stays of one or two nights, such as a motel or youth hostel. These might offer facilities such as shared dormitories or small private rooms containing minimal furnishings. On the other end of the scale are establishments such as luxury hotels and resorts offering higher-end facilities, as well as serviced apartments which may be used for longer-term accommodation.
Bed and Breakfasts
The bed and breakfast or B&B is a fixture of the budget accommodation sector. As the name suggests, guests at a bed and breakfast receive lodgings in a shared or private room and at least one catered meal per day.
Resorts
Resorts range from the humble campground and caravan park to luxurious hotel complexes catering to guests’ every need. The difference between a hotel and a resort is the greater availability of external facilities such as recreation areas, private beaches, parks, etc.
Hotels
Hotels are a little higher up the scale than bed-and-breakfast accommodation. Rooms may be basic, with access to a shared bathroom; luxury hotels offer large suites. Some hotels offer extensive facilities and services, such as spas or gyms.
Motels
Motels focus on short-term lodgings, often aimed at those taking long journeys who need a place to break their trip for a night or two. Facilities tend to be basic and practical, although there are higher-end chains and “theme” motels have their fans.
Hostels
Popular with younger guests and other budget travelers, hostels offer basic comforts in a convivial atmosphere. Lodgings may include private rooms but often focus on large shared dormitories furnished with multiple bunk beds. Hostels often emphasize the social element with group activities.
Serviced apartments
A serviced apartment gives guests the comforts of home without having to worry about cleaning and caretaking. It is a full-sized apartment intended for longer stays but administered like a hotel room, with laundry, room service provided for the guest.
Time sharing
In a timeshare arrangement you pay for the exclusive use of a particular apartment or other lodging but only for part of the year. Time sharing can be an economical solution for those who wish to stay at the same place every year.
2: Food and drink
This subsector is the third largest and accounts for nearly 16 percent of travel and tourism-related spending. Travelers spent $254 billion on food services in 2017, supporting almost 2.1 million U.S. jobs. Data from the National Restaurant Association suggest that the majority are what we’d consider “small business” (7 in 10 restaurants are single-unit). The food and drink sector of the hospitality industry includes places serving fast food at modest prices to sophisticated restaurants. Pubs, wine and cocktail bars are also part of this sector. Entertainment establishments are often involved in providing food and drink. In some cases (such as in the case of a nightclub) food or drink is a major part of the entertainment on offer, while in others (for example in the case of a cinema) food and drink are additions.
Restaurants
Restaurants serve food of varying quality, with a focus on dining rather than providing snacks. Some restaurants may also serve alcoholic beverages, particularly when their primary focus is food.
Catering
Catering involves the provision of food and drink at a premises other than a restaurant or other eateries. This might be the client’s home, workplace or another venue such as a meeting hall or conference center. Catering ranges from simple sandwiches to banquets.
Bars
Bars focus primarily on providing drinks in a social setting. They may also offer light meals and entertainment such as televised sports or live music or comedy.
Nightclubs
Nightclubs focus more heavily on entertainment and social engagement than bars or cafés. Music is typically provided by a DJ but live acts may also perform and there may be other entertainments as well. Nightclubs typically serve minimal or no food, focusing on drinks.
Cafés, Tea and coffee shops
Tea and coffee shops focus on providing hot beverages, often in a quiet and refined setting. They tend to attract a more mature customer base. As well as tea, coffee and other drinks, tea and coffee shops may offer snacks such as pastries. Cafés provide light meals and hot or cold beverages, typically but not always non-alcoholic.
3: Travel and tourism
This subsector is the second-largest and accounts for nearly 17 percent of total travel and tourism-related spending. In 2017, travelers spent more than $270 billion on passenger air transportation services. Air transportation services support nearly 900,000 U.S. jobs. The travel and tourism sector of the hospitality industry includes businesses that arrange transport and activities for travelers. This includes everyone from tour operators dealing largely with those who travel for leisure, to airlines and vehicle rental specialists who serve both leisure and business clients.
Travel agents
Travel agents arrange transport and accommodation for travelers. They work with individual clients to tailor a suitable package, which may include lodgings, activities such as tours, and travel arrangements such as plane tickets.
Online travel agencies (OTA’s)
Playing an increasingly large role in the travel and tourism sector, OTAs perform many of the services offered by a traditional travel agency via a web-based platform. Their lower overheads and greater agility allow them to offer competitive prices for their clients.
Tour operators
Tour operators specialize in arranging tours for their clients. This includes liaising with venue operators, tour guides and other key organisations and individuals. Tour operators are not usually involved directly with giving tours — this is the job of a tour guide.
Casinos
Casinos can be exciting destinations, offering games of chance and other entertainments. Casinos may offer automated slot machines and video games; they may also include more traditional gaming experiences such as card games or roulette. Many also offer food and accommodation.
Cruises
Cruises combine both transport and accommodation, by providing a luxury hotel experience while afloat, combined with travel to exotic and interesting destinations. Cruises offer activities both onboard and on land, such as games and musical productions.
Car rental
Car and vehicle rental is an important hospitality sector both for leisure and business. Vehicles range from chauffeur-driven luxury limousines to budget self-drive options. Rentals may be required for as little as an hour or two or for extended periods of weeks or months
4: Other Subsectors
Subsectors include theater companies and dinner theaters, dance companies, musical groups and artists, other performing arts companies, sports teams and clubs, racetracks, other spectator sports, independent artists, writers, and performers, amusement and theme parks, amusement arcades.
Sources:
*World Travel & Tourism Council, “Travel and Tourism Economic Impact 2018: World,” March 2018
†WTTC Economic Impact Analysis 2015
‡USDA’s Economic Research Service
**KTNS Global Survey, 2017
International Trade Administration’s Industry & Analysis Unit (I&A)