Downtown Knoxville restaurant (and 3,300 others) could close without federal relief
Time is running out for more than 3,300 restaurants and bars reporting they could close for good without government relief, including downtown Knoxville's Wicked Chicken of Cru LLC.
The hot chicken restaurant has been "hemorrhaging money" trying to keep the brand alive during the COVID-19 pandemic, according to Josh James, director of operations for Cru LLC.
James spoke last week during a virtual news conference hosted by the national Independent Restaurant Coalition to request Congress replenish the Restaurant Revitalization Fund, which provided $28.6 billion to restaurants across the country.
Only a fraction of the 278,304 applications were approved, including just 1,163 of 3,785 applications from Tennessee.
Restaurant operators from Ohio, Arizona and Utah also spoke during the conference, sharing frustrations about how restaurants were picked for approval and asking for more relief.
A $60 billion Restaurant Revitalization Fund Replenishment Act currently is making its way through Congress with support from the coalition.
A 'shattered state' for Wicked Chicken
Even operating in a "shattered state" without receiving government funding, James said, Wicked Chicken is fortunate to have other businesses in its restaurant group to lean on.
Cru LLC is part of Nama Hospitality. The hospitality group consists of Knoxville's Nama sushi restaurants, which James said have been successful during the pandemic.
Nobody has been let go from Wicked Chicken; they just have shifted to other restaurants in the group, James said.
Wicked Chicken is now only open Fridays, Saturdays and a half day on Thursdays and Sundays. The other days are spent renovating the restaurant and innovating ways to stay afloat, James said.
Staying open during the week just wasn't feasible, he said.
The restaurant also has limited its menu as price increases continue to negatively impact the entire restaurant industry.
A Knoxville Independent Restaurant Coalition was formed during the pandemic to address local issues, including price increases and labor shortages. The local coalition is led by Brian Strutz, owner of A Dopo.
James said he is still a member of the coalition, but some others have dropped out — either because their businesses have closed or they can't find time to participate in meetings and keep their businesses running.
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Funding 'crucial' to stay afloat
The press conference revealed a letter sent to lawmakers from more than 3,300 restaurants across the country that risk closing without government help.
Nama Hospitality restaurant Harvest Land, Sea and Vine also signed the letter.
Another news conference hosted by the national coalition took place in November and also included Knoxville restaurant owners calling for additional funding.
HP Patel, co-owner of Tandur Indian Kitchen, said during the conference "things just fell apart" once COVID-19 came to Knoxville.
Prior to the pandemic, Patel had three Tandur restaurants in Knoxville. He is now down to one, and terminating the other two leases increased his debt.
"We took on more debt, and we're just falling behind," he said in November. "We got one restaurant that we have operational, and the RRF is very crucial for us to continue to stay afloat for the one remaining restaurant we have here in Knoxville."
Winter could be especially challenging for restaurants, partially due to the decrease in customers willing to sit outdoors. Plus, a survey from the National Restaurant Association shows 60% of adults changed their dining habits due to the delta variant.
Real impacts on food businesses
Erika Polmar, co-founder and executive director of the national coalition, said the omicron variant has increased hesitancy in dining out.
Studies from the coalition found 86% of restaurant and bar owners report they will close without a government grant, according to a news release, and nearly one in five restaurant owners reported their credit scores dipped below 570 during the pandemic.
"Congress can prevent thousands of businesses from closing, a massive supply chain disruption, and widespread job loss by replenishing the Restaurant Revitalization Fund immediately," Polmar said in the release. "This impacts constituents in every single state."
Ryan Wilusz: Knoxville's downtown explorer and urban reporter
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This article originally appeared on Knoxville News Sentinel: Without Restaurant Revitalization Fund, Wicked Chicken could close
