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US restaurants to lose over $50 billion in April alone

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A new survey from the National Restaurant Association has estimated that the restaurant industry could lose over $50 billion in revenue in the month of April alone.

This is due to the effects of the coronavirus outbreak, which has seen closures of all sit-in food and beverage establishments in most states, with many choosing to operate on a delivery-only basis.

The National Restaurant Association surveyed more than 6,500 restaurant operators regarding the first 10 days of the month of April, 2020.

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97% said that their sales were down on the same month in 2019, while sales were reportedly down 78% on average.

Based on these numbers it is estimated that the industry as a whole will lose more than $50billion in sales through the month of April.

Those businesses equipped for off-premises traffic have fared best, but still report heavy losses.

Quickservice operators reported an average sales decline of 57 percent during the first 10 days of April. Fast casual sales were down 64 percent on average, while operators in the coffee and snack segment reported an average sales decline of 73 percent.

Meanwhile, 88% of restaurant operators report cutting staffing levels to some degree through furloughing or redundancies since the beginning of the coronavirus outbreak.

On average, these operators have cut 83% of their total staff, with 41% laying off or furloughing all of their staff.

Based on these numbers it is estimated that over eight million employees are out of work, more than two thirds of the 12 million employed by US food and beverage establishments.

Tags : businesscoronavirusdatafinancialmarket dataNational Restaurant Association
Sam Lewis

The author Sam Lewis

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