The Iowa Restaurant Association conducted a study about a month ago that discovered just how hard of a hit the hospitality industry in Iowa is taking as a result of the COVID-19 pandemic. The study involved 670 operators, which equates to about 10% of the industry, and this is what the agency found:


  • 35% of hospitality establishments (this includes all categories) are currently closed.
  • 91% of bars are currently closed.
  • 82% of restaurants and bars have had to lay off employees.
  • Revenues across all types of concepts are down 84% when compared to March 2019.
  • Restaurants that are offering carryout for the first time are operating with “skeleton crews” and have still had to lay off close to 90% of their employees.


While the study did find that 65% of the restaurants that participated in the study were trying to offer carryout or delivery, the amount of revenue each is bringing in isn’t doing much to keep the establishments alive. The Iowa Restaurant Association said that many of the restaurants that have managed to modify their operations so that they are only offering carryout or delivery are only seeing about $2,400 a week, which is about $12,400 less than what most restaurants average in the same period of time.

The Iowa Restaurant Association also explained that establishments in the industry average a net profit of 5% in good times which means if a restaurant is able to pull in $2,400 a week, the net profit is about $100. Obviously, this isn’t enough to keep a restaurant standing.

Restaurant owners and others in the hospitality industry aren’t the only ones seeing a decline in revenue.

All businesses in the state of Iowa that are not considered an essential business were also forced to shut down their operators or modify them so that they don’t have to make direct contact with the public. Those same business owners are also experiencing a substantial drop in revenue and are having trouble obtaining the relief they need. While many have attempted to apply for a government loan, the money from the $2 trillion CARES Act that funded these loans quickly ran out.

So, where are business owners in Iowa left to turn to for relief?

Insurance companies are saying they aren’t going to cover claims filed for COVID-19 losses. Unfortunately, many insurance companies have denied business interruption claims filed for COVID-19 losses and others intend on doing the same as companies allege pandemics are not covered. But that doesn’t mean a business owner won’t be able to recover money from their policy. If your business interruption claim is denied, you can always contact to get connected with an Iowa insurance claim denial attorney who will advocate for you and challenge your insurer’s decision.

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