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The Spoon

Daily news and analysis about the food tech revolution

NRA

National Restaurant Assoc.: Nearly 1 in 6 Restaurants Closed During Pandemic

Approximately 100,000, or nearly 1 in 6 restaurants, are closed either permanently or for the long term, according to new data from a National Restaurant Association survey released today. Adding to the bad news, the Association reports that 3 million restaurant workers are still out of work and projects that the industry is on track to lose $240 billion this year.

The news comes six months into the COVID-19 pandemic that continues its sustained presence here in the U.S. The restaurant industry was hit particularly hard, especially in the early months of the pandemic as state and local governments across the country forced closures of restaurant dining rooms. Many restaurants have re-opened, but at a reduced capacity and with greater reliance on off-premises formats like delivery and takeout.

The Association’s survey asked restaurant operators about the six-month impact of the COVID pandemic, and discovered that most restaurants are hanging on by a thread and don’t see a bright outlook over the next six months.

Specific findings from the Association’s survey include:

  • Restaurant sales were down an average of 34 percent.
  • The foodservice industry lost $165 billion in revenue between March and July and is on track to lost $240 billion this year.
  • The majority (60 percent) of restaurant operators say that their operational costs are higher now than pre-pandemic.
  • Restaurant staffing levels are at 71 percent of what they would normally be.
  • Forty percent of operators doubt that their restaurant will be in business six months from now without additional assistance from the U.S. government.

The survey adds more data that continues to paint a bleak outlook for the restaurant industry. In July, a Yelp survey found that 60 percent of closed restaurants were shuttered permanently.

The bad news won’t just end with restaurant closures, however. There is an entire tech industry built on the backs of restaurants including POS software, inventory management, staffing, and delivery integration, not to mention the equipment and other hardware manufacturers.

The permanent shuttering of so many restaurants could also lead to less diversity and further consolidation of the restaurant biz — in other words, fewer local sandwich shops and more Subways and other chains that have the size and revenue to withstand this tumult.

In response to the tumult, restaurants large and small have turned to all manner of solutions, from ad hoc drive-thrus to ghost kitchens to creative attempts at outdoor dining. All these efforts should be applauded. None of them guarantee the future of the dining room or the independent restaurant. Like the Association’s survey today, they suggest that the last six months have forever altered the restaurant experience as we knew it.

Want to Help Restaurants Survive? The National Restaurant Association Suggests Just “Buy a Meal”

With restaurants struggling as they’re forced to adjust to the new restrictions in place to fight COVID-19, you, like us, are probably wondering “How can I help?”

There are almost too many options about where to put your dollars to aid struggling foodservice locations. You can buy gift cards, virtually tip your bartender, or donate to relief funds. For places that are still open, you can also order takeout or delivery, either from the restaurant themselves or through a third-party site like DoorDash or Grubhub.

So where’s the best place to put your dollars? That’s the question I posed over the phone this week to Vanessa Sink, Media Relations Director of the National Restaurant Association. According to Sink, the answer is simple: buy a meal.

“Restaurants still want to cook for us,” Sink said. “They’re safe, and they’re there to make sure that we’re getting good food and enjoying it.” If you can, order pick-up or for delivery directly through the restaurant. That way, they don’t have to pay super-high fees to third-party delivery services, which, despite their claims, are not cutting restaurants much slack right now.

Restaurants are trying desperately to get the word out about the importance of ordering to-go meals, while we’re still permitted to do so. Foodservice establishments have actually banded together to launch a new initiative called The Great American Takeout (#TheGreatAmericanTakeout on Twitter) to motivate people to order more to-go meals from their local restaurants. It’s launching today.

Maybe you don’t feel comfortable ordering takeout or delivery from restaurants at this time. And that’s okay. “We support whatever people can do,” Sink said. You can still donate to relief funds for restaurant workers and bartenders — there’s a comprehensive list right here. You can follow the New Yorker’s Helen Rosner’s advice and call your elected officials to demand government relief for restaurants and foodservice workers. If your favorite restaurants are selling gift cards, you can buy one for when this all blows over (but be aware there’s always a risk that the restaurant won’t return to full service).

Or you can see how chefs are getting creative in your area. In Seattle Eric Rivera is offering the sale of pantry items made in his restaurant as well as pick-up meals. Celebrity chef Sean Brock is doing live, private cooking classes. Famed restauranteur Hugh Acheson is offering contracts to come and cook at your house when the COVID-19 quarantine period is over.

Finally, no matter what you do, tip well. Hopefully together we can help more restaurants come out the other side.