The most optimistic forecast shows 20% of Illinois’ food service business closures will be permanent
PRESS RELEASE from the
ILLINOIS POLICY INSTITUTE
MEDIA CONTACT: Rachel Wittel (312) 607-4977
Worst-case scenario: 21,700 Illinois restaurants could permanently close because of COVID-19 shutdown
The most optimistic forecast shows 20% of Illinois’ food service business closures will be permanent
CHICAGO (July 2, 2020) – Using projections from survey results published by the National Bureau of Economic Research, Illinois Policy Institute estimates up to 21,700 Illinois restaurants could close for good in the wake of the COVID-19 crisis and lockdown.The NBER survey shows that as few as 15% of restaurant owners expect to survive if the crisis lasts six months, which in Illinois, would mean losing up to 21,700 restaurants, along with thousands of jobs. This comes as the Illinois Restaurant Association projected only 20% of Illinois’ food service business closures to become permanent, an optimistic forecast in which 5,100 food establishments could close their doors forever.
U.S. Department of Labor data shows 45,249 Illinoisans filed for unemployment in the week ending June 27, bringing total new jobless claims to 1.38 million since COVID-19 started impacting Illinois’ economy.
Illinois Policy Institute analysis shows the state’s raw jobless claims remain nearly five times higher than normal each week.
Orphe Divounguy, chief economist at the nonpartisan Illinois Policy Institute, offered the following statement:
“Small businesses such as food service establishments in Illinois generally have less than two months’ worth of cash on hand. Unfortunately, the COVID-19 crisis and its long, mandated closures have pushed many businesses to the brink of permanently closing their doors.
“Illinois should seek policy solutions to strengthen small businesses most at risk of closure. That means implementing reforms and rejecting the governor’s progressive income tax, which would increase taxes up to 47% on more than 100,000 small businesses just as they are trying to recover from the COVID-19 economic damage.”
To read more about the economic impacts of the COVID-19 pandemic on Illinois’ jobs, visit: illin.is/covidjobless.