 My name is Cheryl Matsuoka, your host today on Restaurants Hawaii on Think Tech Hawaii. And today is July 27th, and it's lunchtime in Hawaii. Today we will receive an update on the Restaurant Revitalization Fund, also fondly known as the RRF. First I'd like to introduce Hawaii Restaurant Association's Executive Assistant, Siobhan Garcia. Hi, Siobhan. Hi. Thank you. Thank you. And I would like to have Siobhan introduce Mike from the National Restaurant Association. Yes, thank you for joining us, Mike. We have Mike Watley. He is the Vice President of State Affairs and Grassroots Advocacy, and he is with the National Restaurant Association. Welcome, Mike. Thanks for having me. And so today the RRF has been a lifeline, Mike, for many, many restaurants, especially here in Hawaii. The stats that I received was one-third of Hawaii's restaurants received $414 million, $414 million of the $28.6 billion. But that still means two-thirds of Hawaii's restaurants who applied didn't get a penny. So for those restaurant tours who did not receive any funds, we're going to be discussing today what happens next to them. So I'm going to ask you the question, Mike, at this point, what should they do? So first of all, thanks for having me. If you look back to March of 2020, which was a scary time for the industry across the nation and across the world, the National Restaurant Association came out about four days after the initial shutdowns in Ohio and said, Congress needs to pass a restaurant industry-specific fund. And it took 15 months for us to get there. It was a lot of trial and error. A lot of your members, I'm sure, contributed in terms of emails and calls and the Hawaii Restaurant Association, our other state partners around the country and the National Restaurant Association just kept the drum beat up for 15 months, and it finally passed as part of the American Rescue Plan. And it was a huge victory for the industry. There are only two industries that have received industry-specific funds, airlines and hotels. So we did a great job of getting our voice out there. Unfortunately, Congress only allocated $28.6 billion in funding. It was 101,000 restaurants receive funding for those restaurants. Congratulations, they're in great, you know, they're for the most part, they're in pretty good shape. They've been topped up for their losses. I'm pretty good firm financial footing going forward. But that was only one-third of the applicants. There are still two-thirds who haven't received any who are looking at this program and saying, this is great, but I'm no better off than I was prior to it being passed. So the good news is there are two separate bills that have been introduced to add additional funding to the program. They both allocate $60 billion in funding in terms of who applies. The applicant window is closed at this point. Nationally, there are still 177,000 restaurants that applied that need funding. For Hawaii specifically, 1,145 received funding, which is great. Congratulations to them. But 1,251 still need money. So more need money than receive money. So there's still a great need. We're pushing all members of Congress to co-sponsor one of these two replenishment bills where we're pushing for things are getting back to normal in certain places, not the standing Delta variant, which we hope was not going to deal with our recovery. But overall, things are getting better. But 15 months of losses can't be replaced overnight. So there's still a critical need here. So for all of the restaurants who are listening who did not receive funding, we encourage you to reach out to Congress and engage. It's really easy. You can text the word replenish to the number 52886. And that will give you a text message where you can click. But I would also call on those who receive funding. The industry as a whole has been in the pandemic together. And there's been this really united front of we're an industry. We're not individual operators. So if you receive funding, I would encourage you to also take action to help your fellow restaurateur because we truly are all in this together. And it's important that we have that unified message going forward. Thank you. Thank you, Mike. And Siobhan, you have a few questions for Mike. I do. When you're talking about these two different bills that are being introduced, can you kind of give some sort of timeline as far as when people should expect these to either take effect or to be voted on? You know, what what kind of movement will we see on this? Sure. So you have two bills. One is the Replenishment Bill, which has the kind of original Restaurants Act co-sponsors on it. So Congressman Fitzpatrick from Pennsylvania, Congressman Blumenauer from Oregon, Senator Sinema, Senator Wicker, Sinema from Arizona, Wicker from Mississippi and quite a few House Democrats and a couple of House Republicans and a couple of Republican senators. That one at this point is the bipartisan bill. It's the original sponsors. That is $60 billion in new funding, so newly allocated funds. And we're encouraging as many folks as possible to sign on to that one. The second one is kind of the appropriately named Entree Act, which was introduced by a member of Congress from Missouri, Blumenauer, which is kind of the Republican alternative. One of the pushbacks that we've gotten is there's a lot of concern about government spending and a lot of concern about inflation around the country. You know, we've had several really big stimulus packages that is concerned about allocating additional funding, regardless of how important or critical it might be to industry. A lot of members of Congress go, we get at restaurants, we understand the hurt. We've spent so much money recently, we can't spend more money. So the Entree Act is $60 billion in funding, but it reprograms existing funding. So basically money that hasn't been utilized yet would be reprogrammed to go to that. You know, we as an industry, we're agnostic. As long as the money gets allocated in some way, it's kind of irrelevant to us if it's new funding or if it's reprogrammed funding. But Republicans are more likely to sign on to the Entree Act. End of the day, it's unlikely, given the state of affairs in DC, that either one of these bills passes by itself. It's just we don't see as much of that in Congress these days where standalone bills move forward. Instead, what you see is standalone bills might get a committee hearing, even pass one House of Congress and then get attached to a larger bill. For example, with the initial RF, it was attached to the American Rescue Plan as part of that process. So we would envision that most likely when the replenishment bill moves forward, it gets attached to a larger vehicle. And there are a couple of larger vehicles out there. So you have kind of two stimulus bills that are moving currently. You have one and you hear a lot of this kind of bipartisan stimulus bill that's being worked on. That's more hard infrastructure. So that's bridges, airports, seaports. You know, we'll see the details on that. Probably unlikely that we get included on that one, just because it's it's hard infrastructure and we're not really hard infrastructure. There is another bill most likely moving that will be more of a partisan bill. There's talk about it being done via reconciliation, which not to get into the details of congressional process. And basically, for a standard bill to pass, you need 60 members of the U.S. Senate to vote, which includes 10 or so Republicans. There is a process called reconciliation where you don't need 60. You need 50 plus the tie breaking vote being Vice President Harris. That is what you saw with the ARP bill. You didn't have Republican support in the Senate. So that's a that's a process as well. That requires that you keep every single Democratic senator. You can't lose a single vote. Senator Manchin of West Virginia has a very influential in this process, kind of what where he is can determine that. So, you know, that's a possible vehicle. There are other kind of vehicles out there. The U.S. House is going on recess very soon for the month of August. So this is not going to happen overnight, which I know for a lot of restaurateurs who need this money like six months ago, that's not great news to hear. But, you know, as of right now, there's no more money. So we need to get more co-sponsors on these bills to help show bipartisan support. And then once we get more co-sponsors, it makes it easier for them to get attached to some sort of larger bill moving forward. So, unfortunately, it's not a tomorrow type of conversation. But we're hopeful that, you know, as long as the industry continues to demonstrate need. And by the way, we as an industry sent a million emails to Congress in 2020. Just think about that. That's incredible. So we were heard then, we just need to be heard now because, you know, for many of the folks on this call, you're probably having record demand right now. You probably have, you know, weights and you can't actually meet the demand. Lawmakers see that and they go, look, I was at a restaurant. There was a weight. I know it's great that you're so busy. And we say, yes, we're so busy. But we also have 15 to 17 months of losses from the past from the pandemic. So, you know, there's a lot to be made up. There's there's a stat out there that close to 40 percent of operators couldn't pay rent last month. So you still have such incredible hurt for the industry. And we need to make it clear that that hurt is out there. And the way to fix that hurt is through replenishment of the RF. Thank you. That's a lot of a lot of great information. So I know you don't have a crystal ball mic. But if you were to say, you know, to the restaurateur is some hope. You're thinking that maybe they're going to get some kind of replenishment twenty twenty or are we looking early twenty twenty one? I mean, sorry, twenty twenty one or early twenty twenty. It's it's hard to lose track of time. I know we would we would hope this year. But with Congress, it's really hard to know. I think it has to get it. It's going to get attached to something if it if it moves and what that vehicle looks like. The real key, I know this is not super health to Hawaii or restaurant tours, because you don't have any Republican senators, is getting more Republican senators on board. Because even if this is passed via reconciliation, like the initial RF was, it really helps move the process if you have bipartisan support and, you know, Republicans or throughout the pandemic have been very supportive of the industry. The challenge is just more spending and, you know, inflation is a real concern. So continuing to spend additional funds is a challenge. So we just need to demonstrate the need and continue talking about the importance of replenishment for, you know, just real quick for those who did apply, who did not receive funding. We've gotten questions in terms of, OK, I didn't I didn't get my money. If there is replenishment, do I have to apply again? It's hard to know exactly that based upon the information we have right now. The answer be no, despite the portal being closed at this point, you would be in there and you would not need to reapply. But could that change perhaps? But as of right now, the most important point is getting the money allocated there. So it's so we have something to actually apply and get allocated to applicable restaurants. Very good. And, you know, the other question that I always receive to are some people, right? Unfortunately, they didn't apply. And so the restaurant tours that didn't apply say, hey, if there is another round and the portal right now it's closed, but let's say if it ever reopens. And I said, I don't know if it ever will reopen. What is your thoughts? So it's a good question. I mean, based upon what SBA has said, there's forty three point six billion dollars in need for those who've applied. If you look at both the Replenishment Act and the Entree Act, both are for sixty billion dollars. So you have about seventeen billion in there. I mean, again, these are standalone bills that have been introduced that will almost certainly get amended in some way, shape or form. If you look back to the initial RR app, it began as the Restaurants Act, which was a much larger pot of money initially and got kind of slimmed down a little bit. So there's a chance that the application process could reopen. But I would say if you did apply, unfortunately, you're probably in much better shape if there is money allocated. Exactly. And and, of course, those people, there are another group of people that actually submitted all their forms. Their grant announcement came in as you were. And then because of the court decision, everything was rescinded. And so they're our understanding on those and kind of the point there for those who may not be aware is there was a twenty one day priority period for women owned businesses, minority owned businesses and veteran owned businesses. And there was also a lawsuit that sought to block that. And ultimately, that lawsuit was successful, but kind of late in the process. So a lot of money had been allocated. And unfortunately, we're, we believe it was in three and four thousand restaurant tours were told, you're getting money. It's X amount. It'll be in your bank account in 14 days. It was delayed, delayed, delayed. And then ultimately did not hear our understanding. And again, you know, it would depend on replenishment. What that looks like is that for those folks who are in that twenty one day priority period, the twenty one days is over. They will be back in line in terms of when they actually applied from a timing perspective. So, you know, to ensure they get money, we really want to make sure that at least that forty three point six billion is allocated because it would be really challenging for folks who were told by the federal government, you're getting X amount of money and then ultimately didn't receive it. It's just it's it's heartbreaking because, you know, you you you may have made business decisions based upon it. You know, you may have thought you were in really good shape and then ultimately weren't. So, you know, we really want to make those folks and make everyone who applied whole because it's really important. And on this channel, we've also had our Hawaii district manager from the SBA, you know, go through everything. And I want to say, Mike, I am so like the process of, you know, going through the portal and uploading your forms and and everything went really, really smoothly. I mean, it was a very easy, easy process. So working with the SBA has been really a pleasure. Yeah. And they were they were great to work with. And we heard a lot of that from a lot of members. And it was also great that we had folks who were truly plugged in and ready to go on day one hour, want to have their stuff put together. And, you know, a lot of that's testament to to your efforts with HRA and a lot of our state restaurant associations around the country in terms of telling folks, hey, this is for real, apply at this exact moment. And, you know, not everyone who did that got funded, but a lot of folks did, you know, it shows not a plug for state restaurant association membership, but it does pay to really be involved with the state association, because, you know, through Hawaii Restaurant Association, folks knew when to apply and knew how to apply. And without being a member of the association, they might not have been in that position. No, you're correct. We had webinars leading up to the, you know, webinars leading up to the day of the portal, the day of the portal opening. We were down there at 4 30 in the morning, you know, because our portal was going to open up at six o'clock, so we were down there at 4 30. And we had actually let our restaurant tours know that if they had a challenge, whatever it is, they had a question. We were physically at our, it's, it's like a, what do you call the Blaisdell and Chavon? It's like a convention center. It's like a gathering place, right? We were down there and waiting for people and people were coming in with their laptops, asking for help, not real clear, you know, hadn't sent out their taxes for 2020 yet, wanted to know what other form, other than tax returns they could use. So we were down there helping the industry, whether, you know, they're a member or not. We're just at this time helping everybody. We also were very happy because the SBA worked with us, even with PPP, Hawaii Restaurant Association was able to have many second languages that maybe some restaurant tours. English is not their first languages. So we had all the options. Well, the SBA locally also implemented that so that we could help, you know, the, the restaurant tours that English isn't their first language understand because it's so intimidating, Mike, and you don't want to, you know, not submit something. It's so much pressure because you have money writing on it, you know, so the support from the SBA and we worked together with them to give it to the restaurant industry. Yeah, and the SBA was very helpful throughout the process. And, you know, it's, it does show the importance of restaurant association membership because you are able to be on those webinars to understand the process, to be prepared, to be able to ask questions you and your staff and help figure it out. And, you know, it's not a guarantee you're gonna get money but the fact that folks were, were in line and ready to roll at that first minute, you know, really was beneficial for them because we knew that the amount that was allocated wasn't going to be enough. I mean, it just wasn't going to cover the immense losses the industry had. You know, it's, it's a fantastic program and we're so excited that it did happen and it helped so many restaurant tours. But, you know, we knew it was not going to cover everyone in the SBA knew that too and they were very transparent about it and said, this is not going to cover everyone. There was a webinar, you know, where SBA was saying, look, in theory you're allowed to fax in your application. Don't, because if you do that, you're not going to get funding because this thing is going to move so quickly. So they're very transparent and it provides some real helpful tips throughout the process. And, you know, that's what today's conversation is all about to those restaurant tours that did get RRF funds. Please don't stop, you know, submitting the text, as Mike said, pushing that call to action but in sending letters to our national delegation. And as Mike and I were talking earlier, you know, a lot of us know personally a lot of our people in Congress, you know, reach out to them and help the restaurants that did not get the funding. That's what today is all about. As Mike said, we're all in this together so we want to support the people who didn't get the funding and we're hoping that there is another allotment of money so that we can get more restaurants funded. You know, I'm on the mainland. I'm not in Hawaii, obviously. I'm in Washington, D.C. area. But, you know, we've heard about the crush you've gotten in terms of tourism. There was the Wall Street Journal article about how people are renting U-Hauls in Hawaii because they're no rental cars. So there's a lot of media attention in terms of how, you know, I don't want to call it well because it's so much hurt, but the surge in demand for tourism in Hawaii. So there's a lot of media attention on that. I would say, you know, if you're asked about it, and you're, you know, you're talking about it, talk about how important it is, but also say yes, but, you know, three months of really busy activity are not going to cover 15 to 17 months of loss. It's important. It's good. But, you know, it's not going to cover it. What we really need is RRF to be replenished because that will make us whole. You know, we're talking about RRF and not to stray, but there is all this demand out there. But I'm sure many of you are experiencing severe labor challenges and labor shortages. And so, you know, I, when I went on vacation back Memorial Day, in place, you know, I was in a kind of coastal area, there were certain restaurants that weren't open at lunch, that weren't open at dinner, that there were no capacity restrictions there, but they weren't open to full capacity because they didn't have staff. I think that's an important part of this conversation too, in terms of, yes, we're busy. We aren't able to fully capitalize on that demand because we don't have enough workers. And so it's just, when you're asked about how business is, I think it's important to tell the complete story of things have turned around, but we still need restaurant revitalization, fun to replenish because there's so much need out there. And I go back to it, you know, even if you got funding, it's so important to help your restaurant friends and your restaurant neighbors. Because, you know, if you're in a tourist area or a hot part of town, you don't want yourself to survive and the two restaurants next to you to fail. Now you have one-third of restaurants that were funded, so you have two-thirds that weren't. You know, you don't want to go from having a vibrant block to being the only restaurant open there. So we are very much all in this together. We have been since the beginning, but because of that, it's why, you know, even if you got money, please reach out to your members of Congress and encourage them to replenish. And I'll push it one last time, but it's the word replenish to 52886. I promise it's easy. It is like three clicks on your iPhone or your computer. So it's very easy. You'll send a message to your members of Congress and hopefully encourage them to co-sponsor, but also as several members of your delegation are co-sponsors to encourage their colleagues in the house and send it to sponsor as well, which is also important. Thank you, Mike. So, Siobhan, do you have any other questions for Mike? No, I think he answered. I just kind of wanted, you know, to go off of that, and I want people to realize too, this isn't just restaurant industry that needs to text this. This is anybody who dines out, enjoys eating out, you know, purchases from their local restaurants. You know, this is everybody can send this message to Congress, and I want everybody to know that we are all in this together and we're all responsible to do our part. So please, everyone, even if you don't work in a restaurant, you, you know, make sure that you either text or you take that call to action button and let Congress know we need this to be replenished. That's a great point. When we did our first action alert back in March of 2020 and this had a, you know, a crush of people who were emailing, it was operators, it was employees, it was customers, it was suppliers, it was landlords. I mean, it was everybody who was taking action and it's because, you know, restaurants are so important to the community. Prior to the pandemic, second largest private sector employer, huge tax base for local governments. You know, very important in terms of retail. With all due respect to our friends in the retail sector, you know, there are retail establishments that may, you know, make you a hot part of town, but it's the restaurants. We all know it's the restaurants. It's the, you know, what's the hot, trendy place you want to go visit? What's your favorite restaurant? That's why people go out. That's what makes our communities, you know, workable, livable, walkable, is restaurants. So if that goes away, you're going to have serious challenges. And I think, you know, our calculations are that 90,000 restaurants nationwide have closed permanently at this point, which is, you know, quite a few restaurants. And that's either haven't reopened since COVID or have been shut long-term and are probably closed. But, you know, there could be a second wave of restaurant closures down the road because a lot of, you know, building owners didn't collect rent for a while to help restaurateurs or help retailers. But now they, you know, they have bills to pay too, they have mortgages to pay too. They are collecting on that debt now. And so some restaurants that may have hung on and may have honestly hung on with hopes of getting an RRF grant who didn't, if this isn't replenished, it could be the end for them. So that's why it's just so critical for everyone if you like restaurants in any way, shape, or form, which I'm hoping is almost everyone, that they take action because, you know, restaurants really need this. Thank you so much. And I have Eric messaging us. We have one more minute. So again, Mike, thank you so much. He's in a different time zone, staying up late just to jump on this call with us. And, you know, as we mentioned, you know, everyone we need a louder voice. I know that restaurants are busy back here in the islands and we've got tourism right now here and it's our summer, it's our peak. And yet, you know, we still need to help each other. We wanted to do this call today and send out the message that we really need everyone to take action on either the call to action button, to text, to email, or send letters to our Congress. And if you know them personally, to reach out to them because we need to keep focused on this topic because we are not going to give up. Right, Mike? We're not giving up. We're not going to give up. You know, we've honestly become too far in terms of doing this to give up now. I mean, the industry has been incredibly resilient. And so, you know, we are in this together. You know, a third of restaurants are hopefully in pretty good shape now, but that other two-thirds, we need two-thirds. We really need to make sure there is funding available for them. Thank you so much, Mike. Thank you very much for your time and joining us today at Big Tech. Next time, I can hopefully be there in person under different circumstances. I would love to do that. That would be awesome. Thank you so much. Thank you.