The graph shows weekly American restaurants
Source: UBS Evidence Lab
Restaurant revenue in the United States is declining as take-away and delivery orders do not make up for lost dinner sales.
UBS Evidence Lab found that restaurant sales fell 69% in the week ending November 29. In the same week, take-away and delivery sales increased by 59%. But the restaurant’s total revenue remained in the red.
Industry experts predicted that winter would further aggravate restaurant problems during the coronavirus pandemic. Low temperatures mean that fewer customers are willing to eat out, even if the establishment provides thermal lamps and blankets.
The winter also ushered in a wave of new Covid-19 cases, making consumers more cautious about eating out and prompting governors and mayors to impose yet another round of restaurant restrictions. New York City has banned indoor dining once again, while Los Angeles has suspended all meals in person.
The pandemic has undoubtedly accelerated the shift to food delivery, with eMarketer predicting that third-party digital sales in general should more than double this year, to $ 44.94 billion.
Investors have closely followed the growth of outsourced delivery companies. The shares of DoorDash, which made its public debut in early December, rose 55%. Its market value of $ 50.3 billion exceeds that of Chipotle Mexican Grill, which owns Taco Bell, Yum Brands and Domino’s Pizza.
Still, take-out and sales will not be enough to save some restaurants if these revenue trends continue. The National Restaurant Association estimates that 110,000 establishments have already closed due to the pandemic. Covid’s new relief bill passed by Congress on Monday means that restaurants will be able to apply for funding from the Check Protection Program, but business groups hope for more targeted relief when President-elect Joe Biden takes over.