Vending

Does Restaurant Revitalization Act snub vending operators?

Photo by istock.com

June 11, 2021

The refunding of the Restaurant Revitalization Fund, announced Thursday, does not allow vending operators to qualify for grants to recover losses from the coronavirus pandemic, a change that the National Automatic Merchandising Association has been lobbying for since the initial relief program was announced in late April.

The Restaurant Revitalization Fund Replenishment Act of 2021 provides $60 billion in additional funding through the Small Business Administration to foodservice operators impacted by COVID-19.

"While we appreciate the relief extension for businesses that were unable to access grants before funds were exhausted, vending operators have been restricted from eligibility, despite the critical role they play in getting consumers access to food and beverages," Mike Goscinski, NAMA director of federal and state affairs, said in a prepared statement.

NAMA worked with the Small Business Administration to ensure clarity for NAICS code restrictions that would allow operators with blended business lines to access the grants, but traditional vending businesses are still not eligible for RRF grants, according to the press release.

RRF eligibility is critical for these small businesses in their efforts to return to a sustainable level and continue to serve Americans where they work, play and go to school, according to NAMA.

"Now is the time to rectify the mistake of excluding hundreds of small businesses that are still reeling from the effects of the pandemic," Goscinski said. "We urge Congress to rectify exclusions and allow eligibility for traditional vending operators in the Restaurant Revitalization Fund Replenishment Act."

NAMA research revealed that 50,000 jobs in the convenience services industry (28.74% of the industry) were cut as of September 2020, and that number is likely significantly higher today.

For an update on how the coronavirus pandemic has affected convenience services, click here.