CNBC’s Jim Cramer said on Monday that he is concerned about plans to further tighten restaurant restrictions in New York and that he will not speed up plans to reopen his closed restaurant in Brooklyn in May.
The city’s restaurants may expand to 50% occupancy as of Friday, compared to the current policy of 35%. The shift comes as coronavirus vaccines are being rolled out across the United States and, as some states, such as Texas, are abandoning pandemic-era restrictions on companies, including mask mandates.
Cramer recently intended to reopen in time for Cinco de Mayo, after “sinking” the restaurant in early October due to concerns about the coronavirus and the challenging economy of operating at a quarter of internal capacity. Cinco de Mayo, celebrated on May 5, is a Mexican holiday, marking victory in an important battle against France in 1862.
“We will continue until May. We want to do everything right,” said Cramer on Monday at “Squawk on the Street”. “I think opening in a hurry is a mistake.”
“I just don’t think we know enough yet. We don’t know enough about viral load. We don’t know enough about what the actual number in a bar should be,” added Cramer. “I just don’t want to get involved with anything about which we have so few facts. But then again, that has been the state of affairs all the way – how little we really know.”
According to the CDC, the risk of Covid’s transmission increases with indoor meals, especially when the tables are not spaced at least 6 feet apart. This led to strict restrictions imposed on the restaurant industry during the pandemic, causing many to close permanently as making a profit in the low-margin business became even more challenging.
At the beginning of the pandemic, the warmer climate allowed what was considered the safest for al fresco dining in much of the country. But as winter hit the Northeast and even parts of the South and Southwest this year, outdoor dining has become scarcer.
On Friday, restaurants in New York state outside the city will move to 75% of capacity.
In the vicinity of Connecticut, Democratic Governor Ned Lamont is allowing restaurants and other businesses to return to 100% capacity on Friday. However, the social distance between tables and other care, such as masks, are still necessary.
Lamont defended the policy adjustment in an interview with CNBC last week, pointing to Covid’s current case counts and high vaccination rates among older residents as a justification. “The difference between 75% and 100% in a restaurant is very difficult to apply anyway, and we think, quite frankly, that we have a very low infection rate now, a lot of capacity in our hospitals,” he said on March 8. “This was the time to make the change.”
Coronavirus cases in the United States have dropped dramatically since the peak of January, prompting state and local leaders across the country to ease the various restrictions as more Americans are vaccinated. However, the number of new infections remains high, averaging more than 50,000 a day, with more than 1,350 people dying from the virus each day on average over the past seven days, according to data from Johns Hopkins University.
On Sunday night, 21% of the US population received at least one dose of vaccine, including 63.4% of people 65 and older, according to data compiled by the Centers for Disease Control and Prevention. More than 80% of all Covid-related deaths in the United States were people aged 65 and over, CDC data show.
US health officials, including the White House chief medical advisor, Dr. Anthony Fauci, warned about easing Covid’s restrictions too early.
Texas Republican Governor Greg Abbott, for example, said his state was “100% OPEN” earlier this month, no masks required.
“When I hear a complete withdrawal from public health measures, without saying more masks, none of this is a risky business,” Fauci said on Sunday on NBC’s “Meet the Press” program.
“If you wait a little longer to give the vaccination program a chance to increase protection in the community, it makes retrogression much less risky,” added Fauci in Fox News Sunday.
Correction: This story has been updated to reflect the capacity for indoor dining in New York City currently limited to 35%.