It’s been more than six months since the first shutdown of restaurants due to the COVID-19 pandemic, and the restaurant industry remains in limbo. According to a new survey by the National Restaurant Association, nearly 1 in 6 restaurants (representing nearly 100,000 restaurants) is closed either permanently or long-term, the industry is forecasted to lose $240 billion in sales by the end of the year, and nearly 3 million employees are still out of work.
The survey, which asked restaurant operators about the six-month impact of the pandemic on their businesses, found that overwhelmingly, most restaurants are still struggling to survive and don't expect their position to improve over the next six months.
“This survey reminds us that independent owners and small franchisees don't have time on their side," said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association.
Consumer spending in restaurants remained well below normal levels in August, with sales were down 34% on average. Restaurant operators reported that their current staffing levels are only 71% of what they would typically be in the absence of COVID-19.
“For an industry built on service and hospitality, the last six months have challenged the core understanding of our business,” said Tom Bené, president & CEO of the National Restaurant Association. “Our survival for this comes down to the creativity and entrepreneurship of owners, operators, and employees. Across the board, from independent owners to multi-unit franchise operators, restaurants are losing money every month, and they continue to struggle to serve their communities and support their employees.”
The survey found that 40% of operators think it is unlikely their restaurant will still be in business six months from now if there are no additional relief packages from the federal government.
“This survey reminds us that independent owners and small franchisees don't have time on their side," said Sean Kennedy, executive vice president of Public Affairs for the National Restaurant Association. “The ongoing disruptions and uncertainty make it impossible for these owners to plan for next week, much less next year.”
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