U.S. restaurant operators’ woes continue as their dining rooms remain closed across the nation.
Around 30,000 California restaurants could permanently close their doors due to economic effects, even after federal aid, according to the California Restaurant Association. The group wants California to delay planned increases to the minimum wage, postpone property tax payments, defer sales and payroll taxes, and other concessions, CBS News reported.
Ohio restaurants lost nearly USD 700 million (EUR 642 million) in sales in March, according to the Ohio Restaurant Association and the National Restaurant Association, according to the Cincinnati Business Courier.
For the average consumer, foodservice spending has declined by an estimated 45 percent compared to a typical week in February, with further planned reductions expected, foodservice research firm Technomic found.
“Consumer demand is still present in the marketplace, but as the pandemic has heightened and concerns have grown, a new normal is setting in,” Technomic said in a new report.
“Shelter-in-place and social distancing actions have resulted in fewer occasion-oriented opportunities for foodservice usage. Office closures enforcing more telecommuting means fewer off-premise lunch occasions, especially in urban and suburban locations. This is having an impact on QSR [quick-service restaurant] and fast-casual business in particular,” stated Technomic’s report.
Meanwhile, Datassential’s latest research found that two-thirds of consumers believe it'll be safe to dine-in at restaurants again within the next three months.
Some of the hardest-hit restaurant operators and foodservice distributors include Houston, Texas-based foodservice distributor Sysco, which has furloughed and laid off “some” of its workers, the Houston Chronicle reported. However, the distributor, which employs 69,000 people worldwide, has declined to say how many have been furloughed and laid off.
Sysco employees in the U.S. who have been temporarily furloughed will have the opportunity to work at Kroger locations for 30 days or more, as agreed upon by both companies, Sysco said in a press release.
Winter Park, Florida-based Ruth’s Hospitality Group temporarily stopped operations at 23 restaurants where take-out and delivery is not viable, and furloughed “a significant number of field and home office team members,” the company said in a press release. It also reduced base salaries of all non-furloughed team members and suspended all new restaurant construction and non-essential capital expenditures, which are expected to lower annual capital expenditures by more than USD 35 million (EUR 32 million).
Austin, Texas-based Chuy’s Holdings furloughed 40 percent of its corporate and administrative staff, and the remaining employees will have pay cuts, according to a press release. The restaurant chain temporarily closed nine of its 102 restaurants, and transitioned the remaining locations to off-premises service.
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