Restaurant Revitalization Fund Replenishment Act Of 2021

A new Presidential administration brings change across the country, including restaurants. We’ve outlined 4 areas of potential impact facing the restaurants industry in the coming months, such as the Restaurant Revitalization Fund Replenishment Act of 2021 which aims to provide financial assistance to restaurants. Here are the 4 areas outlined:

MINIMUM WAGE INCREASE

• Biden’s COVID-19 recovery plan includes a federal increase of the minimum wage to $15 / hr nationwide, eliminating tipped wage rates.

• The Wall Street Journal suggests that this change would cost an independent operator in West Virginia approximately $100,000 a year. This increase would be partially offset by stimulus options for small businesses; however, operators would still be on the hook for a substantial amount of the increase in operating costs.

RESTAURANTS ACT

• The second round of stimulus came with another opportunity for small businesses to apply for forgivable PPP loans; however, it is for all small businesses and not for restaurants alone. The RESTAURANTS Act (Real Economic Support That Acknowledges Unique Restaurant Assistance Needed To Survive) is a proposed piece of legislature that would provide $120 Billion specifically for the hospitality industry.

• This bill was passed in the House of Representatives, but was never voted on in the Senate in 2020. Now, with a shift in Senate leadership, there is renewed interest to see it brought to the floor.

UNEMPLOYMENT BENEFITS

IMMIGRATION CHANGES

Some of these initiatives will begin immediately; others we may see over time. Either way, these administration changes should be at the forefront of your business decisions for your restaurant in the coming months.

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