Earlier this week, the National Restaurant Association issued a startling report: six months into the pandemic, nearly 1 in 6 restaurants, which represents nearly 100,000 eateries across the country, have closed due to the ongoing COVID-19 crisis.
That translates to nearly 3 million employees out of work and $165 billion in lost revenue from March through July. And while we haven’t seen the full impact yet, according to the survey, consumer spending in restaurants was down 34 percent on average during the month of August. By the end of 2020, the food service industry is predicting to lose $240 billion in sales.
Tune in to this morning’s WJR Business Beat, to hear Jeff share more of the study’s findings:
“For an industry built on service and hospitality, the last six months have challenged the core understanding of our business. Our survival for this comes down to the creativity and entrepreneurship of owners, operators and employees from independent owners to multi-unit franchise operators.”
– Tom Benet, president and CEO of the National Restaurant Association, in a press release
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Good morning, Paul.
Earlier this week, the National Restaurant Association issued a startling report: six months into the pandemic, nearly one in six restaurants, which represents nearly a hundred thousand eateries across the country, have closed permanently now due to the ongoing COVID-19 crisis.
That translates to nearly 3 million employees out of work and $165 billion in lost revenue from March through July. And while we haven’t seen the full impact yet, according to the survey, consumer spending in restaurants was down 34 percent on average during the month of August. And by the end of 2020, the food service industry is predicting to lose 240 billion in sales.
While many restaurants are relying heavily on carryout sales and outdoor dining, it’s simply not enough to sustain these businesses. And with winter coming on soon, outdoor dining will no longer contribute to any sustainability for them whatsoever.
Of those surveyed, 40 percent of restaurant owners do not think their businesses will still be operational six months from now, unless additional relief packages are issued from the federal government.
In a press release issued along with the survey, Tom Benet, president and CEO of the National Restaurant Association, had this to say:
“For an industry built on service and hospitality, the last six months have challenged the core understanding of our business. Our survival for this comes down to the creativity and entrepreneurship of owners, operators and employees from independent owners to multi-unit franchise operators.”
As entrepreneurs, we empathize with the struggle these business owners are facing; and as friends, neighbors, and customers, let’s all make sure to enjoy a little takeout or even dining outside this weekend while we can still enjoy our favorite locally owned restaurants.
I’m Jeff Sloan, founder and CEO of StartupNation.com, and that’s today’s Business Beat, brought to you today by Dell Technologies, on the Great Voice of the Great Lakes, WJR.
