Business
Lightfoot: Use $10M in Federal Funds To Help Restaurants, Bars Threatened by COVID-19
A bartender mixes a drink at the Chicago restaurant 14 Parish. (WTTW News)
Mayor Lori Lightfoot announced Thursday she would use $10 million to create a relief fund for Chicago restaurants and bars forced to suspend indoor dining and drinking amid a raging second wave of the coronavirus pandemic.
The test positivity rate calculated by the Chicago Department of Public Health based on a seven-day rolling average is 10.9%, up from 8.2% a week ago.
There is now an average of 1,395 confirmed cases of COVID-19 per day, based on a seven-day rolling average, an increase of 48% in a week.
Struggling restaurants and bars would be able to apply for $10,000 grants from the city under the plan Lightfoot unveiled at a Thursday afternoon news conference.
The funds would come from the unspent portion of the $1.13 billion in funds sent to Chicago in June to help the city cover the cost of responding to the coronavirus pandemic, the mayor’s office announced.
Triggered by a significant increase in the number of confirmed cases of the coronavirus and hospitalizations linked to the virus, Gov. J.B. Pritzker ordered Chicago restaurants and bars to suspend indoor dining and drinking on Oct. 30.
Lightfoot pushed back against that order, to no avail. A day before the state-ordered restrictions took effect, Lightfoot choked back tears while talking about having one last meal at a favorite Logan Square restaurant.
“This is an extraordinarily difficult time,” Lightfoot said, recounting the story again Thursday, telling reporting she was “overcome with emotion” thinking about what would happen to her server, who asked for a picture.
When the governor announced the new restrictions, Lightfoot warned that they would mean many eateries and taverns “hanging on by a thread” would never reopen.
Lightfoot acknowledged that $10 million would not go very far, and once again called on the GOP-controlled Senate to pass another relief package.
Eligible bars and restaurants must have annual revenues of less than $3 million, and have lost at least 25% of their annual net revenue since March.
Chains with more than two locations as well as adult entertainment venues are not eligible.
A lottery will determine which bars and restaurants get grants, officials said, with 60% of the grants reserved for businesses in low- and moderate-income community areas. Applications are set to open the week of Nov. 16.
In addition, Lightfoot said she would support a city ordinance that would temporarily cap the fees delivery companies, like UberEats and DoorDash, could charge restaurants.
Aldermen have been frustrated with those companies for months, since those fees can reach up to 30% of an order. A proposal from Ald. Scott Waguespack (32nd Ward) that would cap the fees at 5% is mired in legislative limbo, after being blocked by several other aldermen.
However, Lightfoot declined to pinpoint what level of a cap she would support.
“I want to get this done quickly,” Lightfoot said.
Representatives of UberEats, DoorDash and GrubHub — the largest third-party delivery companies — immediately objected to a cap, saying it would be counterproductive.
“The caps lower pay for drivers by reducing the number of orders to be delivered; reducing restaurant orders; increasing costs for diners; disrupting an essential supply chain of meals; and costing jobs, tax revenues and important economic activity,” said Grant Klinzman, a spokesperson for GrubHub.
UberEats spokesperson Robert Kellman said a cap would hurt small businesses that outsource deliveries.
“This law would simply shift the costs back onto small, local restaurants who can afford it the least, while also capping the earnings of many hard-working Chicagoans who work as delivery drivers,” Kellman said.
DoorDash spokesperson Campbell Matthews said a cap could reduce pay for delivery drivers while hurting businesses.
“Capping commission rates can reduce or even remove the ability for restaurants to choose the services and products that best serve them,” Matthews said. “More than ever, restaurants need flexibility to decide how they operate and market their business.”
Lightfoot also announced an effort to encourage Chicagoans to get take out from restaurants by launching a contest for those who eat at 10 different restaurants between Thursday and Dec. 15. Those who post their orders using the hashtag #takeoutchicago on social media will be entered to win behind the scenes tours of Chicago destination, including the Art Institute, DuSable Museum, Lincoln Park Zoo and Soldier Field.
In addition, Lightfoot launched a new portal with the Chicago Cook Workforce Partnership to help hospitality workers who have lost their jobs find work.
Contact Heather Cherone: @HeatherCherone | (773) 569-1863 | [email protected]
