A recent survey by the National Restaurant Association showed that 100,000 US restaurants – approximately 1 in 6 nationwide – had closed due to the pandemic. Furthermore, numerous other restaurants will face closure going forward, as the renewal of stimulus funding and aid to small business fade along with the prospect of outdoor dining.
The closure of so many restaurants – and the prospect of further shutdowns – represents a serious threat to the US economy on a number of levels, such as:
- declines in the collection of tax revenues from sales and property taxes
- losses in income – and potential consumer spending – for thousands of servers, cooks, and other staff
- losses in sales throughout the restaurant supply chain – from the farmers who supply food to restaurants to purveyors of table linens, packaging, dishware, and kitchen equipment
- declines in construction activity – restaurants often require periodic maintenance and repair, supporting demand for new flooring, plumbing fixtures and fittings, paint, drywall, and lumber used to make tables and seating
- revenue and job losses for service providers – cleaning staffs, delivery drivers, waste management services, and other firms needed to keep restaurants operating
Freedonia experts will continue to track the rate of restaurant closures – and trends with those who remain open, albeit with limited menus or carry-out service only – to determine how the US economy will be further affected by the ongoing COVID-19 pandemic.
For more information and discussion of opportunities, see Freedonia’s US Restaurant Reopening Impact Report as well as Packaged Facts’ food- and beverage-related reports, including US Food Market Outlook 2020: Home Cooking, Grocery Shopping & Food Trends in the Age of Coronavirus, US Beverage Market Outlook 2020: Grocery Shopping & Personal Consumption in the Coronavirus Era, and Food Carryout & Delivery as well as the companion report with timely consumer insights from our in-house survey capabilities. The Freedonia Group’s extensive collection of off-the-shelf research provides a strong complement to packaged food industry analysis, including Global Foodservice and packaging industry titles such as Foodservice Single-Use Products and Global Foodservice Single-Use Products. Freedonia Custom Research is also available for questions requiring tailored market intelligence.