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Tuesday, December 24, 2024

Michigan restaurant industry continues to suffer, losing hundreds of businesses

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Michigan's restaurant industry made a slight recovery in June. | stock photo

Michigan's restaurant industry made a slight recovery in June. | stock photo

A disturbing but predictable trend, since the COVID-19 shutdowns began across the country, is that the food and beverage hospitality industry saw, and continues to see, many permanent closures. Among those, Michigan ranked seventh across the nation. 

In the Great Lakes state, the restaurant industry took a huge hit at the outset of pandemic-related shutdowns, permanently losing 569 restaurants between the beginning of March and mid-July, according to Michigan Capitol Confidential.

Through March and April, the food and beverage hospitality industry lost more than half of all jobs -- 54% -- going from 315,000 jobs to 145,000. According to Michigan Capitol Confidential, "There were 393,970 people in the food preparation and serving-related industry [in 2019], accounting for 1 out of 11 workers in this state." In March alone, after only a few weeks of closures, the industry reported $491 million in losses, according to WDET 101.9 FM.

Prior to the pandemic, the Michigan Restaurant & Lodging Association said that "the state’s hospitality industry was worth $40 billion in annual sales and employed nearly 600,000 people," as reported by WDET.

Back on July 1, Gov. Gretchen Whitmer issued an executive order that closed bars and restaurants for a second time, after a spike in coronavirus outbreaks that was tied to bars, further stating that she wanted to be in good position to reopen schools for in-person classroom instruction in the fall. The order came after an outbreak of 107 coronavirus cases were linked to a bar in East Lansing. 

The order specifically targeted bars and restaurants that make 70% of their sales from alcohol, which were forced to cease all indoor sales because these establishments were considered hotbeds for spreading the infection. Whitmer's July 1 order did not apply to the Upper Peninsula and parts of northern Michigan, which still remain a medium-high risk part of the state.

Whitmer has issued more than 160 executive orders related to the coronavirus.

Many in the state, particularly conservatives and conservative leaders, have criticized Whitmer's actions on the forced closures, accusing her of abusing her office's power by not citing the details of the science and data she is using to make decisions.

Republican Senate Majority Leader Mike Shirkey (R-Clarklake) said that initially it seemed like Democrats and Republicans were on the same page in combating the pandemic, but over time, the governor has acted on her own. Shirkey has said of the past few months, “I think we crossed a line where we moved from trying to inspire and inform... to basically give directions and mandate," he told MLive.

According to the MI Safe Start Map, most of Michigan remains at a medium-to-high risk for infection, yet as of June, the restaurant industry in Michigan recovered slightly, gaining just over 71,000 jobs, according to Michigan Capitol Confidential.

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