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Majority Of Restaurants Can't Pay Rent, Restaurant Industry Begs For Bailouts, 78% Decline In Demand
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The National Restaurant Association (NRA) penned a letter about the restaurant industry's dire situation heading into the fall season.
They said the "struggling restaurant industry is of grave concern to us." The association included a new survey of the industry's economic conditions and concluded the "state a recovery from the ******* will be prolonged well into 2022." They warned: "the majority of full-service and limited-service operators say business conditions are worse now than three months ago."
Some key findings from the survey are
78% of operators say their restaurant experienced a decline in customer demand for indoor, on-premises dining in recent weeks.
63% of operators said their sales volume in August, historically one of the busiest months for restaurants, was lower than it was in August 2019.
Costs are up – 91% of operators are paying more for food; 84% have higher labor costs; 63% are paying higher occupancy costs, but profitability is down – 85% of operators reported smaller margins than before.
Although the industry has added back many of the jobs lost during the pandemic, 78% of operators say their restaurant doesn't have enough employees to support current customer demand.
95% of restaurant operators say their restaurant experienced supply delays or shortages of key food or beverage items during the past three months.
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