By Adam Pagnucco.
Some in Montgomery County’s restaurant industry have claimed that the county’s COVID restrictions were unnecessarily harsh and inflicted more economic damage than restrictions in other parts of the region. This series uses data on employment, establishments and wages paid from the U.S. Bureau of Labor Statistics to examine whether these claims are accurate.
Let’s begin with the first year of the pandemic, 2020. This was a horrible year for restaurants all over the nation (and the world). COVID-19 began to hit the U.S. with full force in March and many jurisdictions shut down in-person service at restaurants entirely. Later in the year, some levels of in-person service were restored but many patrons continued to use take-out service or avoided restaurants entirely. Restaurants that were newly opened and/or financially unstable were particularly susceptible to failure.
Establishment Count
Between 2019 and 2020, the number of restaurants in Montgomery County fell from 1.692 to 1,667, a net loss of 25 restaurants. Here’s how the county’s net loss of 1.5% of its restaurants compares to other large jurisdictions in the region.
Employment
Between 2019 and 2020, restaurant employment in Montgomery County fell from 29,795 to 22,808, a net loss of 6,987 jobs. Here’s how the county’s net loss of 23% of its restaurant jobs compares to other large jurisdictions in the region.
Total Wages Paid
Between 2019 and 2020, total wages paid in Montgomery County’s restaurant industry fell from $700 million to $557 million, a net loss of $143 million. Here’s how the county’s net loss of 20% of restaurant wages compares to other large jurisdictions in the region.
MoCo’s losses of employment and wages in the restaurant industry were close to regional averages, but its establishment loss was worse than any other large jurisdiction in the area. This is not the end of the story as 2021 was a rebound year. We will find out how MoCo did in the rebound in Part Three.