1851

The House looks set to pass a $1.9 trillion COVID-19 relief bill this week named <a href="https://www.congress.gov/bill/117th-congress/house-bill/1319/text?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">The American Rescue Plan</a> which has major implications for restaurants, small businesses and franchises in all industries. With $1,400 stimulus checks for millions of Americans, increased unemployment benefits, and $25 billion in relief for restaurants, here’s what the industry can expect.<h4>Stimulus Checks</h4>The bill’s $1,400 stimulus checks for Americans making under $75,000 — <a href="https://www.cnbc.com/2021/03/06/covid-relief-biden-says-stimulus-checks-coming-this-month-after-bill-passes.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">which President Biden says could start hitting accounts this month</a> — have the potential to lift restaurant sales by low-to-mid single digits for up to seven weeks, according to Bloomberg Intelligence analysis <a href="https://www.nrn.com/news/stimulus-checks-could-give-restaurants-boost-7-weeks-research-shows?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">reported by Nation's Restaurant News.</a>The $600 checks in<a href="https://1851franchise.com/covid-19-stimulus-checks-when-to-expect-them-and-how-much-2714601"> the last stimulus package</a> boosted restaurant sales by 3% for casual-dining concepts and 5% for quick-service locations for three weeks, the study showed.&nbsp;This round, Bloomberg researchers predict another 5% boost in sales for QSRs like <a href="https://www.mcdonalds.com/us/en-us/about-us/franchising/acquiring-franchising.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">McDonald’s</a>, <a href="https://www.dunkinfranchising.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Dunkin’</a> and <a href="https://company.bk.com/franchising?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Burger King</a>, as well as another 3% same-store sales gain for casual-dining chains like <a href="https://franchise.bloominbrands.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Bloomin'</a>, <a href="https://brinker.com/franchise/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Brinker</a> and <a href="https://www.darden.com/our-company/faqs?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Darden</a>.&nbsp;During <a href="https://www.fool.com/earnings/call-transcripts/2021/02/25/dominos-pizza-inc-dpz-q4-2020-earnings-call-transc/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Domino's Q4 earnings call</a>, CEO Ritch Allison said, "There is no question that the stimulus dollars and the enhanced federal unemployment insurance certainly puts money in consumers' pockets and allows them to go out and buy food."<h4>$25 Billion in Restaurant Relief</h4>The $1.9 trillion stimulus package also includes the <a href="https://www.restaurant-hospitality.com/finance/25-billion-restaurant-revitalization-fund-has-passed-house-part-biden-s-covid-19-rescue?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">Restaurants Revitalization Fund</a>, which would provide $25 billion in relief for restaurants.The plan would provide up to $5 million in grants for individual restaurants, bars, caterers, breweries and tasting rooms, or up to $10 million for restaurant groups affiliated with fewer than 20 locations. Restaurants owned and operated by women, people of color and veterans will be prioritized for the first three weeks of the grant period. One-fifth of the $25 billion funding is also dedicated for businesses that grossed less than $500,000 in receipts in 2019.In February, the National Restaurant Association surveyed 3,000 restaurant operators, <a href="https://www.nrn.com/operations/nearly-30-restaurant-operators-say-business-wont-return-normal-least-year?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">14% of which</a> said they would “probably or definitely” close their doors within the next three months if they didn’t receive any federal aid.&nbsp;<h4>Unemployment and Other Benefits</h4>The American Rescue Plan extends a $300 per week boost to unemployment benefits through Sept. 6 and also includes an expansion of the child tax credit, rental payment assistance and funds for <a href="https://1851franchise.com/when-will-restaurant-workers-get-covid-19-vaccinations-2714575">COVID-19 vaccine distribution</a> and testing. It directs money to state, local and tribal governments, along with schools.In addition to stimulus checks, increased unemployment benefits and additional rent support could increase the spending power of the average American consumer. The bill’s vaccination plan could also help get American consumers back in place where they feel comfortable going out to eat, although how quickly customers will be willing to return to normal is still uncertain. <a href="https://www.marketwatch.com/story/life-after-the-covid-19-vaccine-americans-wont-rush-back-to-restaurants-ball-games-or-public-transportation-11611590839?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">According to Nielsen</a>, 24% of Americans say they’ll spend more dining out once a vaccination is widely distributed, but 22% said they'll spend less.&nbsp;The foodservice industry is already seeing early signs of improvement, with restaurants and bars hiring 286,000 employees in February, <a href="https://www.bls.gov/news.release/pdf/empsit.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-the-19-trillion-covid-19-bill-will-impact-restaurants-2715210" target="_blank" rel="nofollow">the U.S. Department of Labor reported Friday.</a>

How the $1.9 Trillion COVID-19 Bill Will Impact Restaurants

1851 Franchise

The bill’s stimulus checks, small business grants, increased minimum wages and vaccination support could help the foodservice industry recover.

how-the-19-trillion-covid-19-bill-will-impact-restaurants

Fresh Coat

Photo of Jeff and Jenn Berry standing in front of their Fresh Coat Painters vehicle

After Health Concerns Pushed Jeff Berry to a New Opportunity, He Earned Fresh Coat Rookie of the Year in Year One

fresh-coat-franchise-jeff-berry-rookie-of-the-year

Pigtails & Crewcuts

Pigtails & Crewcuts Leadership Team Brings Over 70 Years of Experience to the Table

Pigtails & Crewcuts Leadership Team Brings Over 70 Years of Franchise and Child-Focused Industry Experience to the Table

pigtails-crewcuts-leadership-team-brings-over-70-years-of-franchise-and-child-focused-industry-experience-to-the-table

Dog Training Elite

How Dog Training Elite Helps Individuals With Mental Health Challenges

Training Support That Makes a Difference: How Dog Training Elite Helps Individuals With Mental Health Challenges

training-support-that-makes-a-difference-how-dog-training-elite-helps-individuals-with-mental-health-challenges

TruBlue Home Service Ally

Turn Your Passion for Helping Others Into a Profitable Business With TruBlue Home Service Ally Franchise

turn-your-passion-for-helping-others-into-a-profitable-business-with-trublue-home-service-ally-franchise

Right at Home

Right at Home - What To Expect at Right at Home's Discovery Day - 1851 Franchise

What To Expect When Attending Right at Home’s Discovery Day

right-at-home-discovery-day-what-to-expect

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

McDonald’s To Hire 375,000 Workers as It Prepares for Major U.S. Expansion

mcdonalds-to-hire-375000-workers-as-it-prepares-for-major-us-expansion

Subway Pushes Global Growth Despite U.S. Closures 

subway-pushes-global-growth-despite-us-closures

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

1851 Franchisee Spotlight graphic with photo of Steve & Mia Kim & Paris Baguette logo

After Falling in Love with Paris Baguette, This North Carolina Couple Decided To Open One of Their Own

paris-baguette-franchise-charlotte-nc

The Top 20 Cleaning Franchises to Invest in for 2025

top-cleaning-franchises-to-invest-in

The Top 20 Handyman Franchises To Invest in for 2025

top-handyman-franchises-to-invest-in

How Car Sales Taught Buddy's Home Furnishings’ Mitchell Lee the Secrets of Franchise Development

how-car-sales-taught-buddys-home-furnishings-mitchell-lee-the-secrets-of-franchise-development

How the $1.9 Trillion COVID-19 Bill Will Impact Restaurants

MORE STORIES LIKE THIS