One in six restaurants closed since pandemic began

Nearly one in six restaurants across the country have either closed permanently or for the long-term during the first six months of the Covid-19 pandemic, according to a survey released by the National Restaurant Association.

Since March, nearly 100,000 restaurants have been closed, with nearly 3 million employees still out of work. The survey noted $165 billion in revenue has been lost by the restaurant industry between March and July, and the figure could swell to $240 billion by the end of the year.

As for the restaurants still in business, the survey reported that 60% of operators said their restaurant’s total operational costs as a percent of sales are higher now than they were prior to the Covid-19 outbreak.

On average, restaurant operators said their current staffing levels are only 71% of what they were before the pandemic, while 40% of operators feared that they could remain in business six months from now without additional relief packages from the federal government.

“For an industry built on service and hospitality, the last six months have challenged the core understanding of our business,” said Tom Bené, president and CEO of the National Restaurant Association.

“Our survival for this comes down to the creativity and entrepreneurship of owners, operators, and employees. 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.”