Coronavirus pushing Main Street into dire straits: Former McDonald’s USA CEO

“Main Street is in a lot of trouble,” especially restaurants, because of the coronavirus pandemic and the associated restrictions, former McDonald's USA CEO Ed Rensi warned on “Mornings with Maria” on Monday.

The FAT Brands chairman also argued that the government has done a “very poor job” giving “consistent direction” during the pandemic.

Rensi said the pandemic has been “devastating” for the restaurant industry.

“Restaurants have been brutalized particularly if they have nothing, but indoor dining,” he said. “The restaurants that have delivery and drive-thrus are faring a bit better.”

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In September the National Restaurant Association (NRA) warned, citing data from a survey, that nearly 100,000 restaurants closed either permanently or long-term with about three million employees still out of work. The NRA warned that the restaurant industry is on track to lose $240 billion in sales by the end of the year.

Rensi stressed that the “restaurants that are depended upon family groups, young children, like Chuck E. Cheese pizza, those family entertainment centers, they’ve been devastated, not unlike Disney.”

In an SEC filing last month, the Walt Disney Co. revealed the company is increasing the number of employee layoffs planned for early 2021 by some 4,000 – mostly in its theme parks – bringing the total to 32,000, as the entertainment giant continues to fight coronavirus closings and limits due to the pandemic.

In September the entertainment giant said it would reduce its workforce by 28,000 employees.

Rensi pointed out that “cleaning is not an issue” for restaurants during the pandemic since cleaning and sanitation has been part of the industry’s DNA for years.

He warned, however, that without help from federal and local governments several questions remain.

Rensi said those questions include: “Are we going to have the money to get our employees back to work? Are we going to have the money to withstand the loss of business? Are we going to have the money to sustain a 25 to 50% reduction in a number of seats in a restaurant?”

“When you lose resources, you lose opportunity for profit,” he added.

Rensi stressed that no one is “immune” from the situation sparked by the coronavirus pandemic.

He said he spoke with about 30 women and minority business owners, including landscape and pool maintenance businesses, who are “all in deep trouble.”

Rensi noted that the reason is “not only from the pandemic and what their customers are doing, but because they’re homeschooling their children and a lot of single mothers that own businesses are torn between what they have to do at home, their businesses, a shortage of employees, a lack of a stimulus program [and] they’re scared to death of liability issues because of COVID contamination.”

Congress has been deadlocked on passing the next coronavirus relief package for months, a situation that has gradually worsened as the coronavirus pandemic surges across the country and as local leaders tighten restrictions in an effort to slow the spread.

Late last month, President Trump took to Twitter to urge Congress to pass the next stimulus package and aid failing restaurants as the second wave of the pandemic is forcing some parts of the country to re-enter stricter social distancing guidelines.

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Republicans and Democrats have refused to budge on their demands for what should be included in the next stimulus package – something both Trump and President-elect Joe Biden have urged them to immediately address in order to get a relief package passed.

The argument has remained the same for essentially months with Democrats pushing a $2.2 trillion economic relief bill, while Republicans do not want to surpass a roughly $500 billion package.

Last week, a bipartisan group of senators unveiled a $908 billion coronavirus relief deal after months of congressional gridlock over another emergency aid package for American workers and businesses still reeling from the pandemic.

House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer embraced the bipartisan coronavirus relief deal as the starting point for negotiations with Republicans.

Sen. Bill Cassidy, one of 10 senators drafting the proposed package, said that "one of the sticking points" in negotiations over the bill is liability protection for small businesses that would allow them to be open without worrying that they will be sued by customers who contract COVID-19.

Cassidy, R-La., said that he believes President Trump and Senate Majority Leader Mitch McConnell, R-Ky., will provide crucial support for the $908 billion bipartisan relief deal.

On Monday, Rensi specifically criticized the coronavirus response from some local governments.

“Our government has done a very poor job, in my opinion, with consistent direction from state to state, county to county,” Rensi said. “You look at New York City and how they’ve managed this versus what’s going on in Orlando, Florida, the difference is staggering.”

“The lack of political consistent leadership has been almost as devastating as COVID-19,” Rensi stressed.

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“I think that when you lose trust in government, it’s tough to be a good citizen under these circumstances, when you don’t believe your leaders,” he added.

Fox News’ Danielle Wallace, Caitlin McFall Megan Henney and The Associated Press contributed to this report.