Restaurants in America During the COVID-19 Pandemic — Testimony

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Restaurants in America  
During the COVID-19 Pandemic 
 
 
 
 
 
 
Testimony Submitted by: 
 
Melvin Rodrigue 
President & CEO of Galatoire’s Restaurant  
New Orleans, Louisiana 
Chair, National Restaurant Association 
 
 
 
 
 
 
 
 
 
 
“Restaurants in America During the COVID-19 Pandemic” 
House Committee on Ways and Means 
Subcommittee on Select Revenue Measures 
United States House of Representatives 
September 25, 2020 
 
 
 
 
 
 
 
 
 
 
 

 
Good morning Chairman Thompson, Ranking Member Smith, and members of the Committee:  
 
My name is Melvin Rodrigue and I am President and CEO of Galatoire’s Restaurant in New 
Orleans. I am proud to run what is a fifth-generation, James Beard Award-winning independent.  
I am also a longtime member of the National Restaurant Association, where I currently serve as 
Chair of its Board of Directors.   
 
Thank you for the opportunity to spotlight the current state of our restaurant, our employees, the 
industry we support, and the community we serve.   
 
Before the pandemic, restaurants and foodservice sites employed more than 15 million people, 
at one million locations—the nation’s second-largest private sector employer.  I am forever 
proud to work for an industry that represents a ladder of opportunity for employees and is a 
cornerstone in its community. 
 
What we face at Galatoire’s today is similar to challenges facing restaurants of every shape and 
size, every style and model, in every corner of the country.   
 
You are well aware of the outsized impact that this pandemic has had on an industry as 
vulnerable as ours.  According to a recent National Restaurant Association survey, one in six 
restaurants are currently closed.  Forty percent of those still open say they are likely to close 
within six months without additional federal relief.  The restaurant industry is on track to lose 
$240 billion this year.  Here in New Orleans, our industry here has lost more than 31,000 jobs -- 
half of our pre-pandemic workforce. 
 
Equally important is the recognition that after six months of crippling disruption, virtually every 
kind of restaurant is suffering, from the corner diner to longtime indepedents like Galatoire’s, 
and even to individual owners of full-service restaurant chains.  Our industry needs a federal 
support plan that appreciates this, and doesn’t pick winners and losers based on a business 
model.   
 
The National Restaurant Association released its “Blueprint for Restaurant Revival” in July – a 
comprehensive plan of actions Congress can take to allow restaurants to keep their doors open, 
improve ways we can serve at-risk communities, and minimize disruption to the food supply 
chain for our country.  
 
First and foremost is an economic support plan that reflects that the restaurant industry was the 
first to be shut down, and we will be the last to be reopened.  The National Restaurant 
Association has endorsed the Senate version of the RESTAURANTS Act, which takes a 
balanced approach to provide support for independent and franchise restaurants – both of 
which are on the brink today.  
 
The Paycheck Protection Program (PPP) was an important infusion of cash, but eight weeks of 
support for a pandemic that has crippled us for six months now is not going to be enough.  If 
Congress leaves town without approving a second round of PPP, I promise you that more 
restaurants will close for good before you return in November.   
 
 
 

 
 
Our Blueprint for Revival has components within the jurisdiction of this Committee.  First, we 
appreciate this committee’s support of legislation clarifying that business expenses paid with 
PPP can be deducted from federal taxes. Very few restaurants thought the IRS would restrict 
small business tax deductions while we are in the midst of a global pandemic.  Regardless of 
size, virtually every restaurant operates on single-digit margins—fixing this looming tax liability 
will help all restaurants that have relied on PPP as a lifeline. 
 
Second, restaurants have worked with state and local health officials and adapted to distancing, 
equipment and facility upgrades.  But these upgrades have a cost, and we would ask that 
Congress enact a refundable tax credit to help restaurants sustain further investments in an era 
of dramatically decreased revenues.  We appreciate the introduction of the Healthy Workplace 
Tax Credit and the Committee’s support for this issue. 
 
Finally, the Employee Retention Tax Credit (ERTC) has tremendous potential for our industry 
and we urge the Committee to take steps to enhance the amount, duration, and number of 
businesses that are eligible to use it. 
 
Fifteen years ago, Hurricane Katrina struck the Gulf coast and devastated New Orleans.  It took 
a full decade for the city to again see pre-Katrina visitor levels.  One in four dollars of restaurant 
revenue is directly related to travel and tourism. As a lifelong resident, this is the only event to 
which I can compare how COVID has crippled our industry.   
 
In March of this year, one of the longest-serving members of the Galatoire’s team was 
diagnosed with COVID-19.  Like so many people in New Orleans, he is an integral part of what 
makes our city and our industry so special.  He has been a fixture for 50 years.  After weeks in 
St. Bernard Hospital intensive care, he fought this awful disease and in June rejoined what he 
calls his “big family” of colleagues and customers at the restaurant. 
 
Throughout the summer our employees and our restaurant foundation have supported our 
neighbors by raising and donating considerable funds to recover from Hurricane Laura.  Mr. 
Chairman, we know you have led efforts to provide wildfire relief in the west, and Congressman 
Brady, you have guided relief after Hurricane Harvey.  You know the challenges we face. 
 
Restaurants represent more than just a meal: our industry is more diverse than any other in the 
economy, with more diversity in our employee ranks and more women and people of color in 
manager and ownership roles.  The diverse faces and backgrounds of our industry are what 
create the special spirit of hospitality that make restaurants more than just a place—it’s what 
make us cornerstones in every community. 
 
As the COVID crisis continues, our industry and our employees are asking for your help.  Thank 
you for the opportunity to testify today, and for your support.

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