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Capitol Hill diners like these customers at Oddfellows are finding higher prices and more tightly stretched staff
Capitol Hill restaurants struggle with COVID-19-related pressures such as staff shortages, low revenue, and an uncertain future.
To mitigate financial stressors, restaurants across the U.S increased pricing. The USDA said says that restaurant food prices increased by 6.0% in the past year.
Qualified restaurants want funds from the Restaurant Revitalization Fund but not all receive financial aid.
“We were not one of the lucky ones and did not receive RRF. We tried. We qualified, and got our paperwork in and should have received it,” Terra Plata owner Tamara Murphy said. “But it was not implemented well, and it helped many who might not have needed it.”
The American Rescue Plan Act established the RRF earlier last year, giving the Small Business Association $28.6 billion to award businesses that need funding equal to pandemic-related revenue loss. Up to $10 million was given per business and those who qualify for the funds can apply.
Murphy said RRF aid was not distributed wisely. Because RRF is based on lost revenue, many restaurants who closed doors received funds, leaving out restaurants that stayed open, she said.
“RRF put a lot of money in some pockets, and it worked out for them, unfortunately, we weren’t one of them,” Murphy said.
RRF funds have helped doors stay open for some restaurants fortunate enough.
For Roberto Salmeron, owner of Tacos Chukis, the narrative follows a restaurant that rebounded from RRF funds. He said although there was a 50% sales drop in 2020, his restaurant was able to rebound in 2021 with help from RRF funds.
“We still manage to pay the bills even without it. It just made the difference from having a very precarious situation to one where it’s a little more stress-free,” Salmeron said.
He said other Taco Chukis locations did not receive RRF funds so he understands what other restaurants are going through. Luckily their takeout model has helped them during the pandemic, compared to sit-down restaurants who are more affected, Salmeron said.
He said restaurants should support each other amidst the pandemic.
“We just need to do our part and look after each other. I know it’s easy to get frustrated, where I’m just over the pandemic… But, we just have to get through this and I am honestly hopeful as COVID-19 cases dwindle,” he said. “If more help was offered, I think it would go a long way.”
Star Fusion owner Ernie Enkhtaivan said his restaurant qualified for funds from the Restaurant Revitalization Fund but never received support. He said it is frustrating to not receive RRF funds that his restaurant qualifies for.
For Enkhtaivan, lack of support has been a trend since Star Fusion’s 2020 opening. He said Star Fusion’s first year of business was slow because of the pandemic.
“2020 was super slow. Nobody really wanted to support a new restaurant,” Enkhtaivan said. “Especially when you are an Asian restaurant and the president claims it’s the ‘Chinese virus.’ It was really tough.”
He said the pandemic has made it hard to pay off restaurant debts, and he wonders how other Seattle restaurants are managing funds.
Enkhtaivan said several prices on Star Fusion’s menu increased to meet financial needs. He said he didn’t want to increase pricing, but it was best for the restaurant moving forward.
Throughout the pandemic, he said Star Fusion has struggled to gather its footing and that the restaurant does not qualify for any other government support. Finding this stressful, Enkhtaivan said he hopes to receive support from a new wave of RRF funds.
Star Fusion is, in the meantime, facing an eventual closure or move — another restaurant is lined up to eventually take over its Broadway space.
Although some Capitol Hill restaurants received aid last year, some owners say RRF funds are not enough.
Garret Doherty, the owner of Lionhead restaurant, agrees with requests for RRF replenishment. He said his restaurant is thankful to have received funds from the RRF but is disappointed by the lack of financial support since the first wave of funds on May 11. The funds are gone, and like other restaurants, Lionhead is beginning to feel it with employee numbers going down and fewer patrons, he said.
Doherty said this has become a major stressor for the restaurant, making it hard to gauge the future. Even though Lionhead has received support from RRF, he wants funds to be replenished and a new stimulus bill to support restaurants moving forward.
“We are all in the same boat, we are all struggling,” Doherty said.
Restaurants are part of an industry where people don’t want to hear about their financial problems, Doherty said. He said people expect to pay for the same things like before even though expenses across the board have increased.
“Understanding is the biggest thing,” he said. “We are not out here trying to buy cars. We are out here trying to stay open and pay employees so that everybody survives this.”
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