The restaurant and food service industry accounts for nearly 220,000 jobs in Nevada, about 15 percent of all jobs in the state, according to the Nevada Restaurant Association.

As restaurants have moved to takeout and delivery to save jobs and generate revenue during the coronavirus shutdown, how much is the state of Nevada doing to assist this significant sector?

Not much, according to a study released April 3 by a leading national trade publication.

The analysis, by Restaurant Business, addressed state-level actions, not local or federal efforts, and found that nearly all states have allowed closed restaurants to offer takeout and delivery of food.

Further, some states have variously eased restrictions on takeout and delivery of alcohol; extended sales, payroll and other tax deadlines (Nevada has no corporate income tax); provided emergency loans; or created funds especially for restaurants.

Nevada is one of four states — Alaska, South Dakota and Wyoming are the others — not offering any assistance tied to the state except for access to federal Small Business Administration programs, the study found.

What other states are doing to help

By contrast, below are some actions other states have taken, the analysis found, to assist restaurants or other small businesses affected by COVID-19:

  • Arizona approved a $50 million coronavirus relief package that includes help for small businesses;
  • California extended filing and payment deadlines for payroll and income taxes;
  • Connecticut is offering no-interest small business loans up to $75,000 or up to three months of operating expenses;
  • Delaware is offering no-interest loans of up to $10,000 a month for bars, restaurants and other hospitality establishments; 
  • Kansas is providing no-interest loans up to $20,000 through its hospitality industry relief fund;
  • Maryland instituted a fund for low-interest loans and a fund for grants, both for small businesses;
  • Michigan allocated $10 million for loans and $10 million for grants through its small business relief efforts;
  • Ohio instituted a one-time buyback of the alcohol inventory bars and restaurants have on hand; and
  • Washington’s public-private development agency is offering grants for up to two months of rent and payroll.

Katherine Jacobi, president and CEO of the Nevada Restaurant Association, did not return multiple requests for comment on the study or on potential future assistance programs from the State of Nevada.

In 3 weeks, 3 million jobs and $25 billion lost

The coronavirus pandemic, as Eater put it, “is uniquely poised to take down the restaurant industry as we know it.”

Many restaurants are independent businesses that already operate on thin margins and don’t have the cash to withstand an extended shutdown.

What about insurance? Many owners are finding that policies don’t cover interruption caused by pandemics or other public health emergencies

Although recent tracking by Morning Consult, a global data and survey research company, found that 30 percent of Americans are more likely to use restaurant delivery services, the pivot by restaurants to takeout and delivery might not be sustainable. 

And some restaurants are reconsidering altogether the benefits of third-party delivery apps like Grubhub or Uber Eats.

During the first three weeks of March, the restaurant industry lost 3 million jobs and $25 billion in sales, according to research by the National Restaurant Association, the chief trade group for the industry. 

Moreover, the Association said the pandemic could cost restaurants $225 billion in the short-term and cause the loss of 5 million to 7 million industry jobs.

What will the state of Nevada do?

In Reno, it’s been three weeks since Mayor Hillary Schieve ordered Reno bars and restaurants to close (later clarified), a little more than two weeks since Gov. Steve Sisolak ordered non-essential businesses to shut statewide, and about a week since he extended that closure to April 30.

Although some restaurants elected to cease all operations temporarily following Sisolak’s directive, many more decided to remain open for takeout and delivery; hundreds alone submitted information for the list compiled by @RGJTaste of area restaurants offering these services.

With the one-month anniversary of the coronavirus shutdown approaching, trends might begin to emerge for local restaurants.

Will a significant number close, deciding that takeout and delivery do not pencil out? Will a significant number carry on? And, most important many insiders would say, will the State of Nevada aid the industry like states elsewhere have?

A message for legislators

Shila Morris, doubtless speaking for many restaurant owners, certainly hopes so. 

“It’s disappointing to hear that Nevada is in the bottom four states, especially because we are a state that embraces and champions hospitality,” said Morris, whose family owns the Squeeze In restaurants.

“You would think the state would do more to support people in the industry, especially independent businesses, mom-and pops.”

On the other hand, “it’s also hard to criticize. Legislators have a lot of people in their ear,” she continued, adding that state funds to help restaurants and other small businesses, like those instituted elsewhere, would be a “really important step for Nevada to be taking.

“I still have faith Nevada legislators will do the right thing and our state will catch up.”

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Johnathan L. Wright is the food and drink editor of RGJ Media, part of the USA Today Network. Join @RGJTaste on Twitter, Facebook and Instagram. 

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