While some restaurants struggle to adjust to the new coronavirus world, others have simply given up. Nearly one in six US restaurants are expected to close long-term or close for good in 2020, according to a National Restaurant Association survey.
This represents about 100,000 restaurants, and survey results revealed 40 percent of restaurant operators don't think they'll be in business in six months.
The association estimates the industry will lose $240 billion (€202.6 billion) in sales by the end of 2020.
Foodservice is being hit both with a decline in consumer spending but also increases in operational costs. Sales were down 34 percent in August on average and 60 percent of restaurant operators surveyed by the association state that total operational costs as a percent of sales are higher now.
Nearly three million foodservice workers are still out of a job and restaurants say staffing levels are at 71 percent of normal levels pre-COVID-19.
“The foodservice industry was the nation’s second largest private sector employer and pumped more than $2 trillion (€1.7 billion) into the economy right up until our sudden shutdown,” said Sean Kennedy, executive vice president of public affairs for the association.
"Across the board, from independent owners to multi-unit franchise operators, restaurants are losing money every month, and they continue to struggle to serve their communities and support their employees," said Tom Bene, president and CEO of the association. "
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