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Arkansas restaurateurs tell lawmakers lost business, urge more relief as vaccination approaches
Summary
Two independent restaurant owners told lawmakers that pandemic restrictions and public fear cut sales sharply — one cited a drop from $1,051,000 to $315,000 between March–October — and urged targeted aid, tax relief or grants to keep local restaurants afloat until vaccination increases customer confidence.
Two small-restaurant owners described steep financial losses and operational pivots to the Senate Public Health, Welfare and Labor Committee, asking state lawmakers to consider additional help to prevent closures and job losses.
Paul Kreff, owner of Shorty Smalls, and Vince Schallenberg of All Aboard Restaurant and Grill said fixed costs, narrow margins and reduced customer demand have produced dramatic revenue declines. Kreff told the committee that March–October sales at one location fell from about $1,051,000 in the previous comparable period to roughly $315,000 this year — a drop of $736,000 — and that his business has already spent loan proceeds and emergency funds to cover payroll and air‑filtration upgrades. “When you've got about 4% margin in this business, that's a 70% decrease,” he said.
What owners told lawmakers
- Investments and pivots: Operators described investments in air‑purification systems, UV lights, enhanced filtration, outdoor seating with heaters and contactless ordering technology. They also used PPP, EIDL and other loans and said those funds were largely exhausted. - Employment impacts: One owner said payroll fell from about $362,000 to $159,000 over the cited period; another reported cutting staff from 38–42 employees to 17 on the most recent payroll. - Requests to lawmakers: Owners asked for more targeted grant money, consideration of temporary local tax relief and help replenishing an unemployment trust fund so employer rates do not spike in January. They emphasized that small operators have limited runway and that a vaccine rollout does not immediately restore customer confidence.
Committee discussion
Lawmakers, including Representative Mark Johnson and Representative Peyton, discussed avenues for relief such as business-interruption grants, the $50 million the committee identified for the unemployment trust fund, and the possibility of temporary local tax relief to reduce immediate outflows from small businesses. Members also debated whether an extension of federal unemployment supplements would help local consumer demand.
Why it matters
Restaurants are a significant employment sector locally and pay sales taxes that fund schools and local services; several owners warned that many small locations will not reopen without substantial interim support and that even when a vaccine is widely available, customer confidence may lag.
Next steps
Lawmakers asked owners to work with the Arkansas Hospitality Association and committee staff to identify precise proposals and said the legislature will continue examining tax and grant options in the upcoming session.
