ECON 61% of Restaurants and 31% of Small Business' Can't Pay December Rent

[Doomer Doug]

Looks like the economic collapse is now combining with the eviction crisis in January. I should add that December is the core of the holiday retail sales that provide a large percentage of total yearly revenue for small business' and restaurants.

Yep, the tide is has gone out, and I can hear the rumble of the tide pouring back towards the shore. Aside from EVERYTHING else we got a bona fide economic catastrophe to deal with in a month or so.

Zerohedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

A Record 61% Of Restaurants, 35% Of Small Businesses Can't Pay December Rent

BY TYLER DURDEN
WEDNESDAY, DEC 16, 2020 - 19:30
Another day, another restaurant doomsday story.
According to the latest Alignable Rent Poll, it’s becoming increasingly difficult for small businesses everywhere to pay their rent in full and on time, given the latest COVID resurgences. The need for more federal funding is also becoming more pronounced for many of these businesses, according to the poll.
These findings are based on the most recent Alignable Rent Poll conducted among 9,204 small business owners from 11/21-11/23/2020. Here are the highlights:

• Several B2C industries are devastated – 61% of restaurants can’t pay their rent this month. That’s up 19% from 42% in November.
• 35% of U.S. small businesses couldn’t pay their rent this month, up 3% from 32% in November.
• Beauty salons (46%) and travel/hospitality businesses (43%) round out the Top 3 most-affected businesses, but many others are in trouble.
• Looking at demographics, minority-owned businesses are suffering the most, as 49% of them reported that they could not afford their rent in December. That figure is 5% higher than it was in November.
• Women-owned businesses are also struggling (38% of those have not paid their rent, up 3% from 35% last month).

Overall, 35% of small business owners reported that they couldn't make rent this month (up 3% from 32% in November). For minority-owned businesses, the struggle is even more pronounced: nearly half (49%) report being unable to cover their rent in December. That figure jumped 5% from 44% in November. For women-owned businesses, 35% couldn't make rent in November and now that percentage is up to 38% in December.
Looking at different sectors, it's clear that money is growing even tighter in many B2C industries, and paying rent is becoming increasingly more challenging.

Restaurants/bars top the list in December with 61% unable to cover their rent. (And that's up 19% since November).
Nearly half of beauty salons (46%) had trouble paying the rent, as did 43% of travel/hospitality businesses.
High percentages of small business owners in other industries also couldn't pay their rent in full, on time:

• 41% of gyms
• 40% of retailers
• 40% of massage therapists
• 36% of entertainers
• 32% of construction/home services firms.

Most noted that increasing restrictions based on COVID resurgences are causing more problems for them -- and limiting the kind of revenue they can make for the rest of the year, and perhaps, beyond.

Rent Woes Across The U.S. & Canada
While 35% of U.S.-based small businesses are unable to pay December rent, small businesses in a variety of states are even more cash-strapped.

In Canada, the rate is even higher - 37% of Canadian small business owners said they couldn't make December rent, 1% higher than in November. Here's the breakdown by state for those matching or exceeding the overall, national U.S. average:

• NY -- 43%
• AZ -- 43%
• IL -- 42%
• OR -- 42%
• WA -- 40%
• MD -- 40%
• NJ -- 39%
• PA -- 39%
• CA -- 37%
• VA -- 36%
• GA -- 36%
• MN -- 36%
• FL -- 35%
• SC -- 35%

The following states are still struggling, but not as much as those listed above:

• TX -- 34%
• MI -- 34%
• OH -- 32%
• MA -- 31%
• CO -- 29%
• NC -- 27%
• MO -- 20%

Shifting from the U.S. to Canada, the survey witnessed a range of rent payment rates across the provinces. On one extreme, small businesses in British Columbia appear to be weathering the COVID storm a bit better, with only 30% of them reporting that they couldn't afford to pay rent in full and on time. However, the situation is more severe in other parts of Canada: 43% of small businesses in Alberta, and 42% in Ontario reported not making December rent.


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SHOW COMMENTS

 

[SSTemplar]

In my area all my favorite restaurants are open for dine in. Being retired I eat out at least twice a week.

 

[Dennis Olson]

And this will all come to a head under a Blowhole administration.


Perfect.

 

[Intestinal Fortitude]

and the suppliers of those restaurants

ripples in a pond

 

[Dozdoats]

And it was government shutdown edicts which did the damage.

 

[hiwall]

We had supper at our favorite dine in restaurant last night.

61% Of Restaurants, 35% Of Small Businesses Can't Pay December Rent
I'm surprised it isn't more. Though many have long since closed for good

 

[West]

And we can put this bad news down in the WIN category for the communist and socialist governments in the USA.

And of course they will blame the failures on greedy capitalism, after the virus.

Small business is the incubator of employment. As it declines, so too do opportunities for first jobs, second chances and economic independence.

Proof of my WAG, that was just a good guess, but not surprising at all!....

The Top 1% of Americans Have Taken $50 Trillion From the Bottom 90%—And That's Made the U.S. Less Secure

A report shows that a $50 trillion redistribution of income to benefit the richest has made America less healthy, resilient, and secure

time.com

Quote...

Price and Edwards calculate that the cumulative tab for our four-decade-long experiment in radical inequality had grown to over $47 trillion from 1975 through 2018. At a recent pace of about $2.5 trillion a year, that number we estimate crossed the $50 trillion mark by early 2020. That’s $50 trillion that would have gone into the paychecks of working Americans had inequality held constant—$50 trillion that would have built a far larger and more prosperous economy—$50 trillion that would have enabled the vast majority of Americans to enter this pandemic far more healthy, resilient, and financially secure.

As the RAND report [whose research was funded by the Fair Work Center which co-author David Rolf is a board member of] demonstrates, a rising tide most definitely did not lift all boats. It didn’t even lift most of them, as nearly all of the benefits of growth these past 45 years were captured by those at the very top. And as the American economy grows radically unequal it is holding back economic growth itself.

End quote.

Sad spin above, the majority of peoples who know little to nothing about being in business in the USA, eat these screwed up figures, hook line and sinkers.

 

[Doomer Doug]

bump