It is no secret that restaurants across the United States have taken a hit because of the COVID-19 pandemic. But in the nation's largest city, the numbers may shock even those who were expecting the worst.
Eater New York is reporting (via an Executive Budget document for the fiscal year 2021) that spending at restaurants in New York City fell by more than 90% as compared to the prior year, with this leading to the city missing its projected sales tax collection by more than 40 percent for the fourth quarter of 2020, or more $1 billion in lost sales tax collections. The extreme dropoff in business at restaurants and bars can be attributed to places in the city having to shut down their indoor dining areas and bars, only allowing takeout and delivery like so many other parts of the country.
The budget document does say that sales tax collections in New York City are expected to pick up in 2021, though because of unemployment and losses in income, collections are slated to be "over $1 billion below the January Plan estimate for the year."
by Marc Hurwitz (Also follow us on Twitter at @hiddenboston)
[A related post from our sister site (Boston's Hidden Restaurants): List of Restaurant Closings and Openings in the Boston Area]
