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Early Data Suggests Restaurant Industry Is Bottoming Out

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Early Data Suggests Restaurant Industry Is Bottoming Out

U.S. restaurant customer transactions fell 41% for the week ending April 5, marking a very slight improvement from the 42% fall seen in the prior week. This could serve as an early indicator that the restaurant industry has bottomed out, according to NPD.

Some Restaurants Fare Better Than Others, But All In Heavy Decline

The potential bottoming of restaurant transactions seen in the past week could be a function of on-premise restaurants closing their dining rooms and the industry-wide shift toward carryout, delivery and drive-thru, NDP said in a press release.

NPD's data also shows quick-service restaurants that already catered to off-premise eating experienced a lower decline in transactions, at a 38% drop.

As expected, full-service restaurants that rely heavily on a dining hall experienced total transaction declines of 79% for the week ending April 5.

What's Next For Restaurants 

The bottom for the restaurant industry is far from confirmed, as it could easily worsen if the economic landscape doesn't improve, NPD said. 

"To date, many consumers have continued to buy restaurant meals through delivery, takeout, and drive-thru to the degree allowed by the restrictive environment; but with rising unemployment, payroll reductions, and temporary furloughs, consumers may begin to think differently about their food budgets overall." 

Related Links:

Celeb Chef Robert Irvine Says Coronavirus Will Permanently Change Restaurant Business

Uber Eats, GrubHub, Others Sued For Hiking Fees Charged To Restaurants For Deliveries During Pandemic

 

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