said . “ We have steadfastly been contributing to the state , happily , because it ’ s a wonderful place to live , but the state has failed us here . And we need help to get through this time .”
Like Duque , he would like to see more support from city and state leadership .
“ We ’ re used to our elected officials ’ refrain of ‘ small businesses are the backbone of our economy ,’” said Schofield , who also spoke on behalf of thirty other businesses as cofounder of the Hope Street Merchants Association . “ And while we appreciate every December having our elected officials come by our shops and restaurants and encouraging people to shop local , this is a time to put our money where our mouths are .”
Since December , Frog & Toad ’ s sales have fallen by 5 percent . It might not sound like a lot , he said , but that equals $ 20,000 , and “ for a small-time guy that ’ s a lot of money . If you prorate that over the course of a calendar year , that ’ s $ 65,000 times how many years it takes to complete this project . That ’ s money that I can ’ t afford to pay my staff .”
REVENUE WOES
LOCAL BUSINESSES WERE just starting to climb out from under the pandemic ’ s economic shadow when the bridge crisis hit , says Heather Singleton , the interim president and CEO of the Rhode Island Hospitality Association .
“ I don ’ t think that enough people realize that we are still in recovery from the pandemic ,” she says . “ One business owner told me that it was not until this past October that they started to see numbers like they had pre-pandemic . So they ’ re starting to feel good about coming out of the pandemic and then all of a sudden , this happens . It ’ s like two steps forward and five steps backwards . They ’ re just feeling very , very beat up at this point .”
The hospitality industry is the second-largest in the state , Singleton says , with 87,000 employees . “ We are a major economic driver .” In December 2023 , East Providence saw a 6.3 percent year-over-year decrease in the meal and beverage tax , while Providence ’ s increased by 4.8 percent , according to the R . I . Department of Revenue . Those numbers flipped in January , with East Providence seeing a 1 percent increase and Providence dropping by 5.6 percent .
“ That equals $ 3.2 million in revenue and $ 600,000 in tips for employees ,” said Pot au Feu ’ s Burke at April ’ s hearing .
The figures track with what he ’ s seeing at the restaurant , with Friday night sales off anywhere
Ana Duque , pictured , and fellow Heal Room co-owner Karen Mejias moved their business from Pawtucket to East Providence in December 2023 .
from 30 to 50 percent because of rush hour traffic . As a result , they ’ ve reduced workers ’ schedules , something we “ never want to do ,” he said .
One employee lives in Coventry and allows two hours to travel into the city on Fridays , he said . Another who lives in Pawtuxet Village allocates forty-five minutes for the commute .
Harut Matkasyan , owner of the Riviera Restaurant in East Providence , told the committee that the closure came at a critical time for his restaurant .
“ December is the worst month this could have happened ,” he said . “ It should have been our best month because of all the Christmas parties , but instead we had a lot of cancellations . That kind of revenue is hard to recoup when your expenses stay the same .”
He ’ s seen a 40 percent decline in business and a steep drop in future banquet bookings . To offset the losses , he ’ s delayed repaving the parking lot and installing a new ceiling and lighting inside the restaurant . Without relief , he ’ ll have to reevaluate his staffing needs , something he ’ s trying to avoid .
Mare Rooftop has also seen a sharp drop in patrons . Business at the restaurant , which serves Mediterranean fare from atop its commanding perch at the
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