Market Overview

Early Readout From Texas Restaurants Are Mixed


Restaurants in Texas will be allowed to operate at 75% normal capacity on Friday, but early readouts are mixed, according to the Texas Restaurant Association.

What Happened: According to the latest TRA survey of restaurants, 28% of owners said they are seeing a "steady" stream of dine-in customers. Another 26.3% of respondents said their business is "slow" while 12.4% said traffic is "very slow." Just 1.4% of respondents said their dine-in rooms are "packed."

Approximately two out of three restaurants are operating at the maximum 50% seating capacity while another 12.6% of restaurants remain closed. Regardless, 94% of restaurants said their total dollar sales volume from May 1 to May 15 was less on a year-over-year basis by 54% on average.

Six out of 10 restaurants don't expect to turn a profit over the next six months.

Why It's Important: Texas is second in the U.S. in terms of total eateries, next to California. Employment data from Texas seems to skew towards the positive side: 81% of restaurant operators laid-off workers, but 80% of those have rehired workers in recent days or weeks.

What's Next: The state was among the first to give restaurants permission to resume dine-in operations and its early performance could foreshadow what will happen in other regions.

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