Because we are based in the US, we have plenty of data about how the COVID-19 outbreak is decimating the restaurant business here. And while we have a general sense about how restaurants are faring in other parts of the world (bad), we haven’t seen a lot of numbers.
But thanks to Jorge Corona Gutierrez, we have a small glimpse into the impact of the global pandemic across Latin America countries like Argentina, Chile, Perú and Mexico.
Gutierrez is the Founder and CEO of Popapp, a restaurant software startup that helps manage delivery for small to medium-sized restaurants. He pulled together data from Popapp’s 300 customers to provide a snapshot of how COVID-19 has impacted the restaurant business across Latin America. From that report, Gutierrez says:
- As of March 1 of this year, Popapp had 336 active point of sale (POS) per day. By April 6, that number had dropped to 59 active POS per day, representing an 82 percent churn.
- During the first week of March, the average cumulative sales per day of Popapp’s customers was roughly $117,000 (USD) per day. During the first week of April, that number dropped to $25,000, an 84 percent loss in revenue.
Obviously this is a small snapshot of the overall state of the restaurant industry in Latin America, but it does give us some numbers to get a sense of the problems there.
Even amidst this gloom, however, Gutierrez points out some optimism. That 59 active POS number above is actually an improvement over the nadir for the company over the past month, when there were just 43 active POS systems per day. And Gutierrez says that his company has been steadily adding more customers suggesting that more restaurants are pivoting to delivery.
The data from Gutierrez’s report does illustrate that this is a truly global pandemic that is hitting the restaurant industry particularly hard around the world.