Podcast

Local Restaurants Struggle to Reopen Due to Conflicting Federal Benefit Programs

The paycheck protection program (PPP) is designed to help businesses reopen, but the CARES Act incentives employees to stay home. We talk to one Utah restaurant group to see how they are managing the conflict.

|


The paycheck protection program (PPP) is designed to help businesses reopen, but the CARES Act incentives employees to stay home. We talk to one Utah restaurant group to see how they are managing the conflict.

LISTEN TO THE PODCAST

WATCH THE VIDEO

Small businesses and restaurants that qualified and received funding from the SBA’s $400 billion in funding from the paycheck protection program allowed many owners to breathe a sigh of relief. 

But that relief was short lived when the CARES act enabled their employees to potentially earn more money by staying home than by returning to work. With an additional $600 per week in unemployment benefits, layed off or furloughed workers can receive up to $4,000 per month. In many cases this is more than many employees can earn coming to work. 

Hoang Nguyen, is the Managing Partner of the Sapa Group. She is now beginning to  understand the severity of the problem. The Sapa Group company owns six restaurants in Salt Lake City including Sapa Sushi Bar and Asian Grill, Purgatory Bar, Fat Fish, Omo Korean BBQ, Bucket of Crawfish,  among others. She says all of their restaurants are struggling to get employees to return due to the generosity of CARES Act in the manner it conflicts with the back-to-work mission of the Paycheck Protection Program (PPP). 

Nguyen was a guest on the Utah Stories Show podcast, she said, “Many of our employees can earn more by staying home, so they don’t want to come back yet.” She added that her long-term core staff has remained on payroll and they were never laid off, but her junior employees and many servers and support staff might not be returning, which is requiring her to find new workers.

Sapa’s downtown Sushi Bar has become one of the most iconic dining experiences in Salt Lake City since they opened. Their patio offers one-hundred-year-old tea houses imported from VietNam along with a Koi pond. Their sushi rolls are hand-crafted works of art, and they have always placed a huge value on their employees, paying them above market rates.

Utah Stories has heard from not only Sapa but other restaurants that the CARES Act has essentially sabotaged the effectiveness of the PPP Program. Nguyen said that she doesn’t know how they can possibly meet the provisions required in the PPP Program, which requires business owners to spend 75% of the funds from the time when they first received it six weeks ago. “The clock is ticking, and I just don’t see any way we will possibly spend the money by then unless they change the provisions.” If they don’t spend the money, the funds are no longer forgivable, and convert into a loan which they will be required to pay back. Ngyen said they are hoping that the SBA realized the problem with their terms, and the conflict with the CARES funding so that they can get more time to spend the money on working employees.

What can Federal leaders do to help the thousands of independent restaurants stay alive? Listen to Nguyen’s answer on the Utah Stories show to find out.

Sapa Investment Group is involved in other development and restaurant projects including “Food Alley” which is renovating an area at 757 South and State Street, which will become home to up to 17 new restaurants. 

FOR MORE UTAH STORIES PODCASTS GO HERE.



Join our newsletter.
Stay informed.


  • Whiskey, Bullets & a Buried Town: Archaeologists Reveal Alta’s Wild Past

    Before Alta was known for powder days and lift lines, it was a silver mining town clinging to the side of a narrow canyon. In the late 1800s, men lived at 8,000 feet, went underground each day, and endured winters that regularly buried buildings in snow. This past summer, that mining town resurfaced — literally — during construction at the Alta Ski Area.

    To understand what Alta really looked like, you don’t begin with legend. You begin with its trash — and this time, that happened almost by accident.

    Alta Ski Area was installing underground water reservoirs to support snowmaking. Because the project sits on Uinta-Wasatch-Cache National Forest land, an archaeologist was required to monitor the excavation. No one expected the trench to produce much.

    But, It did.

    Artifacts began surfacing almost immediately. Enough that the Forest Service contacted the Utah State Historic Preservation Office for help. Lexi Little, who coordinates the Utah Cultural Site Stewardship Program, helped mobilize nearly 30 volunteers to assist with what quickly became a focused two-week excavation.

    Winter deadlines were approaching. The pipes for the reservoirs had to go in the ground. There wasn’t time for a slow, extended dig.

    “It was two weeks of digging in the dirt and helping figure out exactly what we were looking at,” Little said.

    Most of the people screening soil weren’t professional archaeologists. They were trained stewards from around Utah — part of a statewide volunteer network that now approaches 500 people. They poured dirt through shaker screens, scanning for fragments that could piece together a town long buried.

    “Archaeology is human trash,” Little explained. “Archaeologists are very into trash.”

    Alta had left plenty behind.

    https://youtu.be/hzIHzx3OGoo?si=dKcl2CEz-t6FZzYw

    Victorian-style ceramics appeared first — the kind typically used in hotels. Medicine bottles followed. Ink bottles. Hand-blown glass. A porcelain doll’s foot surfaced from the soil, a small detail that shifted the mental image of the town. Families were here. Children were here. This wasn’t only a camp of miners.

    The bottles helped establish time. Manufacturing details — whether glass was hand-blown or mold-made, whether a maker’s mark appeared on the base — allowed archaeologists to date many of the artifacts to the 1870s through the 1890s, when Alta was booming as a silver mining town.

    “That gives you that range of dates for when Alta was really booming,” Little said.

    One reusable soda bottle clearly stamped “Salt Lake City” connected the canyon to the valley economy below.

    Then something unusual rolled out of a dirt pile.

    A corked bottle. Intact. Liquid still inside.

    Continue reading and support independent Utah journalism with a purchase of Utah Stories (Digital + Print) or 3 month free trial (Digital).


  • How Horses Help Kids Heal: Inside Utah’s Equine Therapy World

    Kelty Johnson trains horses for a living, but her deeper work happens in the quiet space between animal and human. On the Utah Stories podcast, she explains how equine therapy helps children regulate emotions, build confidence, and reconnect through presence rather than pressure.


  • Angela Brown: The Woman Behind SLUG Magazine and Craft Lake City

    Angela Brown is the publisher and owner of SLUG Magazine, one of the city’s longest-running independent publications and a central voice in Utah’s alternative arts and music scene. She is also the founder of Craft Lake City, a nonprofit that has grown into one of the state’s largest platforms for local makers and creative entrepreneurs.


  • Can Utahns Still Afford to Have Kids?

    When families cannot afford homes near their jobs, the daily math becomes brutal. Commutes stretch longer. Childcare costs pile up. Mortgages consume more of a household’s income. The result is what economists call “house-poor” families—people who technically own a home but have almost nothing left over to live on.

    The obvious question is: why isn’t this being fixed?