The graph shows weekly US restaurants
Source: UBS Evidence Lab
U.S. restaurant revenue declines as declining and delivery orders do not compensate for lost food sales.
UBS Evidence Lab found that dining-in-restaurant sales fell 69% in the week ending Nov. 29. In the same week, sales and delivery increased 59%. But overall restaurant revenue remains good in the red.
Industry experts predicted that winter’s problems during the coronavirus pandemic would worsen. Cold temperatures mean that fewer customers are willing to eat outside, even if the company offers heat lamps and blankets.
The winter weather has also ushered in a surge in new Covid-19 cases, making consumers more cautious about eating out and leading governors and mayors to restrict restaurants another round. The city of New York again banned indoor dining, while Los Angeles discontinued all personal dining.
The pandemic has undoubtedly accelerated the shift to food delivery, with eMarketer predicting total third-party digital sales this year to more than double to $ 44.94 billion.
Investors have been closely following the growth of third-party delivery companies. The shares of DoorDash, which made its public debut in early December, are up 55%. Its market value of $ 50.3 billion is above that of Chipotle Mexican Grill, Taco Bell owner Yum Brands and Domino’s Pizza.
However, the delivery and continued sales will not be sufficient to save some restaurants if these revenue trends continue. The National Restaurant Association estimates that 110,000 businesses have already been closed due to the pandemic. The new Covid bill passed late Monday means restaurants will be able to apply for Paycheck Protection Program funding, but trade groups are hoping for more targeted relief when President-elect Joe Biden takes office.