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Seventy-Five Percent of Restaurant Operators Do Not Expect to Earn Profit in the Next Six Months
The restaurant industry is one of the many that have been affected by the COVID-19 pandemic. Many chains resort to curbside pickup or drive-through. However, three of four restaurant operators don't expect to turn a profit in the next 6 months, as reported by data from the National Restaurant Association.
Restaurants lost $120 billion in sales between March and May. It is forecasted that the industry could lose another $240 billion in sales by the end of 2020.
“State-mandated stay-at-home policies and forced closures of restaurant dining rooms resulted in losses of $30 billion in March, $50 billion in April, and another $40 billion in May,” the group said.
State mandated stay-at-home policies and forced closures of restaurant dining rooms resulted in losses of $30 billion in March, $50 billion in April, and another $40 billion in May. Learn more here: https://t.co/kuwUawoo1w. #COVID #restaurantindustry pic.twitter.com/ICj93fR8Ph
— National Restaurant Association (@WeRRestaurants) June 16, 2020
The group polled more than 3,800 restaurant operators from May 15th through May 25th.
Sixty-six percent of respondents with restaurants open for takeout and delivery said it is still “too soon” to reopen safely. Thirty-four percent said there aren’t enough customers to justify reopening, as reported by Fox Business.
According to Fox Business, sales are recovering at chains like Outback Steakhouse, “but are still down 24 percent over last year.”
The industry is also suffering supply chain issues because of the pandemic. The Consumer Price Index has reported that the costs of steaks, ribs, and pork roasts are up by 10 percent, and a whole chicken is up 7 percent.
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