New research from the National Restaurant Association illustrates the extensive damage to restaurant businesses since the pandemic began. It found that the restaurant industry, which experienced the most significant sales and job losses of any industry in the country in the first quarter of 2020, expects to lose $240 billion by the year-end.
The operator survey drew more than 3,800 responses. Among the top takeaways.
- More than eight million restaurant employees were unemployed at the height of the pandemic.
- 76 percent of restaurants that remained open in some capacity have rehired some staff.
- 25 percent of restaurants that are temporarily closed have rehired some staff and plan to reopen.
- 84 percent said they received a loan through the Paycheck Protection Program … BUT …
- 78 percent said the funding would not be enough to keep all their employees on the payroll until sales are enough to cover labor costs in the weeks or months ahead.
- 75 percent said it’s unlikely their restaurants would be profitable within the next six months, under the assumption that there will be no additional relief packages from the federal government.
Among the restaurants that are currently open for off-premises traffic only, 28 percent are located in a jurisdiction that is now allowing on-premises dining again. However…
- 66 percent of these operators say they aren’t open for on-premises dining because it is too soon from a public health perspective.
- 40 percent percent say they aren’t open because safety and social distancing measures are not yet in place at the restaurant.
- 34 percent of these operators say they don’t have enough customers to justify reopening.
- 27 percent don’t have enough employees to staff the restaurant.
- Five percent are delaying opening because of the eight-week PPP loan period (extended to 24 weeks in June).
- 80 percent of these operators say they do plan to open for on-premises dining within the next 30 days.