Local restaurant favorite Nick's English Hut has been forced to apply for more than $1 million in loans and grants.
(Alex Paul, WFIU/WTIU News)
Since the start of the pandemic, no industry has faced more financial hardship than restaurants.
The recently passed American Rescue Plan Act will help these businesses by allocating $28.6 billion in federal aid. But for some local establishments, the help is coming too late.
The Standard Grain Restaurant opened just north of Bloomington’s downtown square on the corner of 8th Street and North Walnut, with the goal of bringing a variety of new flavors into town. But shortly after opening its doors, the most unforeseen events unfolded.
The Standard Grain decided to close its doors for good in late February following financial difficulties brought on by the pandemic. (Alex Paul, WFIU/WTIU News)
"We opened eight days before the pandemic. And of course, you can't predict a pandemic, and there's nothing we could have done about that," said Standard Grain's former general manager, Brooke Bayer.
The restaurant started out offering a little bit of everything. Bayer said the menu was a diverse mix of international cuisine made with quality ingredients.
"We had a great first two weeks opening with fantastic sales, tons of people and great feedback from the community," she said.
And then, without any notice, Bayer and her staff faced the COVID-19 shutdown and economic collapse that affected American small businesses everywhere.
Bayer said throughout the pandemic, not one of her employees tested positive for COVID-19. She said the restaurant took great pride in keeping the building clean and practicing good safety protocols. (Alex Paul, WFIU/WTIU News)
"We thought about delivery, it just wasn't going to work," Bayer said. "We had a such a small staff; it was really disheartening to have to let a few people go. But in order to survive, we had to do what we had to do."
She said that, after a few months passed and restaurants began to reopen, business started to pick up as well. From May through September, things weren’t looking too bad.
But then winter set in and business plummeted. Bayer and her team decided to close for the holidays and reopen in early 2021.
"Our decision was based solely off the fact that we were planning on a PPP loan," she said. "And unfortunately, we did not qualify for that because we were not open in 2019 and could not show a loss for 2019."
The Paycheck Protection Program (PPP) loans largely are based on past and projected revenues, which Standard Grain did not have.
"Many businesses, especially food businesses, live pretty close to the ground. They're not check to check, but there's just not a lot of cushion in foodservice operations," said the city’s assistant director for small business development Jane Kupersmith.
The City of Bloomington launched its own program to help businesses struggling to stay afloat during the pandemic. City Council spent $2 million from the local food and beverage tax fund that was intended for an expanded Monroe County Convention Center.
"So initially, we conceived of this is a bridge program to help get cash into the hands of local businesses while they waited for their larger federal support," said Kupersmith.
Members of Bloomington's business and banking community came together to form the Rapid Response Fund (RRF), which became responsible for evaluating restaurants and tourism-based businesses eligible to receive money.
One of the longest-standing local restaurants, Nick’s English Hut, received one of the loans. Bright said she applied as soon as possible and was awarded $50,000 from the fund.
"When you’re not expecting to go into debt and you are forced to go in debt, and don’t know how you can pay it back, it’s scary," said Nick's owner, Susan Bright.
Nick’s has been a Bloomington staple for nearly a century, but Bright said that didn’t make it any easier.
"I tell you, everybody that I talked to thought, 'Oh Nick’s is okay. They’re making a profit.' I’m like no, we haven’t had a profit since last February," said Bright, explaining that revenue is down 50% since the pandemic began. Nick’s was not approved for a second round of PPP loans until last week.
"I’m looking now at the end of this year and I see a little light at the end of this dark tunnel. For us restaurants, being able to partake in these loans and grants has allowed us to be wise and spend more frugally," said Bright.
Nick’s has received more than $1 million in loans and grants in the past year. With the weather warming up, Bright said she finally sees an opportunity to move forward without government assistance.
The Independent Restaurant Coalition reported earlier this month that the industry is slowly recovering and, even though business is still below pre-pandemic levels, Indiana is the top state in the Midwest in sales and revenue.
In early April, independently-owned bars and restaurants with fewer than 20 locations are expected to be eligible to apply for funds through the American Rescue Plan.
The Standard Grain did not receive any federal loans and will not be opening up again. (Alex Paul, WFIU/WTIU News)
But for Bayer and Standard Grain, it’s too late. The timing of the pandemic put too much of a financial strain on the restaurant, and it was unsalvagable.
"It’s a hard market to find an opportunity, but I have complete faith that something will open and when the time is right," Bayer said.
