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Thursday, May 9, 2024

Michigan restaurants are in survival mode after new COVID-19 health restrictions implemented

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The state has closed indoor dining for food and drink establishments through at least Dec. 8. | Stock Photo

The state has closed indoor dining for food and drink establishments through at least Dec. 8. | Stock Photo

Michigan restaurants are struggling after the state implemented new COVID-19 public health restrictions, according to reporting from Bridge Michigan.

In response to surging numbers of coronavirus cases throughout the state, Robert Gordon, director of the Michigan Department of Health and Human Services (MDHHS), recently issued orders for restaurants and bars to close indoor service through Tuesday, Dec. 8.

Dan Kolander, owner of Dan’s Downtown Tavern, a bar and restaurant in downtown Saline, said that the night before Thanksgiving is “the biggest bar night of the year” and that normally he would clear approximately $15,000 in revenue that night.

“Now it’s zero,” Kolander told Bridge Michigan. “It’s literally zero.”

Instead, Kolander and his six remaining workers spent the days leading up to Thanksgiving preparing turkey dinners for catering orders. When the restaurant reopens on Friday, it will be operating at reduced capacity, only be able to offer carryout and a few seats on an outdoor heated patio.

Kolander says that he’s had to lay off 40 of his 46 employees and estimates losing at least $500,000 since March, with sales falling from $40,000 per week to $5,000 last week. He inherited his building, so has fewer expenses than many others in the industry. 

“That’s the only reason I’m surviving,” he told Bridge Michigan.

The Michigan Restaurant & Lodging Association (MRLA) recently filed a lawsuit against Gordon and the MDHHS. Its request for businesses to remain open until the matter can be argued in court has been denied.

The U.S. Centers for Disease Control and Prevention (CDC) has rated indoor dining as "high risk." According to a study by the CDC, adults testing positive for the coronavirus were twice as likely to have reported dining at a restaurant. The CDC adds that it is difficult to wear masks and social-distance while eating or drinking.

Business groups around the state are intently watching the proceedings and wondering if the restrictions will be lifted on the expected date or whether they will be extended or even expanded to other business sectors.

“I’m concerned that this three weeks is not going to be the end of this, in terms of the restrictions, and that it will be extended for another two or three weeks after that,” said Brian Calley, president of the Small Business Association of Michigan, according to Bridge Michigan.

As Tuesday, Dec. 8 approaches, MDHHS will consider whether current restrictions will be lifted or extended further, depending on several factors.

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