Business & Investment

Despite the delivery boom, restaurant revenue declined

The graph shows weekly restaurants in the United States

Source: UBS Evidence Lab

US restaurant revenues are declining because takeaway and delivery orders cannot make up for the loss of eating out sales.

UBS Evidence Lab found that restaurant sales plummeted 69% during the week ending November 29. In the same week, takeaway and delivery sales surged 59%. However, the restaurant’s total revenue remained in the red.

Industry experts have predicted that winter will exacerbate restaurant trouble during the coronavirus pandemic. Cold temperatures mean that few customers are willing to eat outside, even if the facility offers heat lamps and blankets.

Winter weather also led to a surge in new Covid-19 cases, leading consumers to be more cautious about eating out and to impose other restrictions on restaurants for the governor and mayor. New York City has once again banned indoor dining, and Los Angeles has stopped all face-to-face dining.

The pandemic is undoubtedly accelerating the transition to food delivery, and eMarketer predicts that overall third-party digital revenue will more than double this year to $ 44.94 billion.

Investors are closely tracking the growth of third-party shipping companies.Share Door dashThe public debut in early December is up 55%. Its market value is $ 50.3 billion Chipotle Mexican Grill, Taco Bell Owner Yum Brands And Domino’s pizza..

Still, if these revenue trends continue, delivery and take-away sales aren’t enough to save some restaurants. The National Restaurant Association estimates that 110,000 facilities have already been closed due to a pandemic. The new Covid bailout bill passed by Congress late Monday means restaurants can apply for Paycheck Protection Program funding, but industry groups want more targeted bailouts if: President-elect Joe Biden Inauguration.

Despite the delivery boom, restaurant revenue declined

https://www.cnbc.com/2020/12/27/covid-pandemic-restaurant-revenue-has-fallen-despite-delivery-boom.html Despite the delivery boom, restaurant revenue declined

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