COVID relief loans not enough to save Country Cupboard

Marcia Moore, The Daily Item, Sunbury, Pa.
·3 min read

Jan. 30—Despite receiving nearly $2.7 million in COVID-relief loans to cover payroll and other operating expenses, Country Cupboard Inc. was unable to weather the economic hardships brought on in part by the global pandemic.

A mainstay Lewisburg restaurant for nearly 50 years, Country Cupboard Restaurant and adjoining gift shops and greenhouse will close by the end of February, CEO and co-owner Chris Baylor announced Monday.

"It was truly a lifeline for the period we really needed it," Country Cupboard Chief Financial Officer Robert Pierce said of the COVID-related relief funds the company received during the pandemic.

However, the challenges of having to shut down the restaurant for 103 days at the start of the pandemic and reopening with restrictions, plus the labor and food shortages and declining consumer interest in indoor dining were too much to overcome, Baylor said.

"We just never recovered from that," he said.

The hospitality industry, in particular restaurants, has been severely impacted by the labor shortage, food supply chain issues and consumer reticence in dining out since the COVID-19 pandemic began in the U.S. in March 2020.

Country Cupboard was one of more than 320,000 full-service restaurants nationwide to collect a total of $42.51 billion in Paycheck Protection Program (PPP) loans to cover payroll. The U.S. Small Business Administration loan program ended May 31, 2021.

When the family-owned Lewisburg eatery applied for its first PPP loan in April 2020, it reported employing 265 people and a 2019 annual payroll of at least $7.17 million, according to the federal website listing all of the PPP loans issued nationwide.

The first PPP loan Country Cupboard received was for $1.1 million. The company received another PPP loan in January 2021 for $1.49 million. Country Cupboard Inc. and Country Cupboard Inn received an additional $90,000 in COVID-19 Hospitality Industry Recovery Program (CHIRP) grants.

At the time of Monday's closure announcement, Country Cupboard Inc. had 140 full- and part-time employees.

The company used all of its PPP funds to cover payroll, which made it eligible for the loan forgiveness program, Pierce said.

Another potential funding stream was the Restaurant Revitalization Fund (RRF). Although the Country Cupboard applied online for a portion of the $65 billion funds within 15 minutes of it being made available and qualified as a second round of recipients, all of the money was dispersed during the first round, Pierce said.

This week, the Pennsylvania Restaurant & Lodging Association urged Congress to renew the Restaurant Revitalization Fund (RRF), making more grant money available for restaurant owners impacted by the COVID pandemic.

According to National Restaurant Association, the first round of Restaurant Revitalization Fund grants saved more than 35,000 Pennsylvania jobs. The association estimates another 60,000 restaurant jobs could be saved with more funding.

"There are a lot of 'what ifs'" Baylor said of how that extra financial boost could have impacted his family's business.

He dispels any talk that plans have already been made for the 77,000-square-foot building that houses Country Cupboard and Shops.

"We're just trying to get through the next couple of weeks," he said, particularly since there's been a "significant" increase in business since Monday's pending closure announcement.

"Our bakery shelves are completely empty at the end of the day and we've had lines, which is not normal for January," said Baylor, adding that he and the employees have been overwhelmed by the response. "We are touched by the great stories and thank you cards."