![]() Please email us at: of this writing, the likeliest scenarios appear to be A1 and A3. If you would like information about this content we will be happy to work with you. We strive to provide individuals with disabilities equal access to our website. Consumer perception of value and the prevalence of deals have buoyed some restaurants’ sales during the crisis, as customers-suffering financial losses and fearing continuing financial insecurity-increasingly look for ways to save money. Starbucks China, for instance, saw a 12-percentage-point increase in the share of digital transactions postcrisis-from 15 percent in January to 27 percent in late March (down from a peak of 80 percent in February). If trends in China are any indication, consumers could remain more digitally engaged even after the crisis. A strong online-ordering presence, digital loyalty programs, and robust customer-relationship-management (CRM) systems have been lifelines for restaurants during this crisis, as levels of digital engagement among consumers have soared. Declines have been highest in densely populated states such as Connecticut and There are large disparities in restaurant-traffic declines across states. With many people working from home, restaurants that generated much of their business from daytime eating occasions-such as people getting breakfast or coffee on the way to work-have been disproportionately affected. Unsurprisingly, restaurants with high off-premise sales prior to the crisis are faring better than those that relied more on dine-in sales. ![]() Off-premise versus on-premise sales mix.Please email us at: restaurant’s performance during the crisis has depended largely on the following factors: ![]() For some fine-dining establishments, revenues fell to zero. Whereas pizza chains have maintained or increased sales during the pandemic, casual-dining and fine-dining restaurants have seen their revenues decline by as much as 85 percent (Exhibit 1). The pandemic’s impact to dateĬOVID-19’s economic toll on the restaurant industry hasn’t been evenly distributed. We then recommend a set of concrete actions for restaurants to return to stability and help shape the next normal. In this article, we describe COVID-19’s impact on the US restaurant industry to date and explore two likely scenarios for recovery. However, restaurants that plan ahead to adapt and refine their restaurant model for the “ next normal” will be better positioned to bring sales back to precrisis levels. Early indications-from China and other countries where the pandemic seemed to be under control-suggest that consumer demand won’t immediately rebound when restrictions are lifted. Never before have so many restaurants been forced to cease operations some will never reopen. ![]() After weeks of quarantine and physical distancing, what does the future hold for US restaurants-and for the more than eight million restaurant workers across the country who have been laid off or furloughed since March? How quickly will US consumers feel comfortable eating out again?ĬOVID-19 has not only been a devastating public-health crisis it has also been the restaurant industry’s greatest challenge to date.
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