Predictions at the beginning of the coronavirus pandemic were doom and gloom with some believing a third of all U.S. restaurants would close. But with the pandemic winding down, thankfully, those predictions appear to have been far more alarmist than reality.
Restaurateur Philip Camino and chef Nyesha Arrington break down the latest restaurant closure numbers from the National Restaurant Association and how they fall quite short of expectations. Nyesha and Philip provide a little insight on what might have saved some restaurants from closing and what might be in store for the future of the industry’s recovery.
Listen to Philip and Nyesha talk about restaurant closures:
- The USB predicted 1-in-5 restaurants would close, while Aaron Allen and Associates believed 1-in-3 restaurants would permanently close due to the coronavirus pandemic
- The National Restaurant Association polled thousands of restaurants in the first half of April.
- They found that about 90,000 restaurants are either permanently or long-term closed, which is down from the 110,000 reported in December. That’s less than 14% of the country’s restaurants.
- Sales have been trending upward with a month-to-month increase.
- 44% of operators expect their April-June sales to surpass March’s sales
- 90% of operators said they will continue to maintain their expanded outdoor dining.
- This surge in business could be due to the start of Summer, easing tensions as more people get vaccinated, and because of restrictions loosening after the long lockdown.
- Still, April 2021 sales are down about 2% from pre-pandemic, which accounts to about $1.3 billion across the entire hospitality industry
Links:
Happy Mouth Podcast Instagram
Bloomberg - One-third of U.S. restaurants face permanent closure this year
Bloomberg - Restaurant closures now at 14% despite apocalyptic predictions
Insider - One in 5 restaurants in the US could permanently close
National Restaurant Association - COVID-19 operator survey
U.S. Travel - Monthly travel recovery data report
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