Restaurants are facing a new wave of restrictions, and they have encountered another obstacle as they try to make ends meet and recover from the coronavirus pandemic.
CNBC’s analysis of Johns Hopkins University data showed that in the United States, the number of new Covid-19 cases that occurred every day reached a record 88,521 on Thursday.
Dr. Scott Gottlieb, former Food and Drug Administration Commissioner, said on CNBC’s “Squawk Box”: “We are starting to find ourselves on a steep slope of the epidemic curve, so I think you will see cases The increase is accelerating.” “About 15 states have a positive rate of more than 1
The positive rate shows the percentage of positive results for the coronavirus, and the number of reproduction is a measure of the spread of Covid-19. Both figures indicate rapid growth in the future.
The surge in the number of cases has led to stricter restrictions on meals in certain areas of the country. Starting Friday, Chicago restaurants once again banned indoor dining.In Denver, the restaurant capacity has been reduced from 50% to 25%, and now the last call for alcoholic beverages is 10pm
In Europe, facing the second wave of infections, the nationwide meal requirements have happened again. France is re-entering a state of lockdown, which includes temporarily closing bars and restaurants that are deemed insignificant. Starting from November 2nd, restaurants and bars in Germany will be closed for one month, partially closed.
While the pandemic is spreading, restaurants and their unemployed employees are still waiting for another round of stimulus package from the federal government. Since then, the loans provided to restaurants through the Salary Protection Program have been used up, and the unemployment rate in September was 7.9%, which means that many consumers do not have enough cash to eat out.
Chain restaurants have rebounded faster than independent restaurants, but the uncertainty surrounding the surge in Covid-10 cases makes it more difficult to predict their recovery.
Take Starbucks as an example. The company said on Thursday that 63% of its American coffee shops have limited seating. The coffee chain is expected to resume same-store sales growth before the end of the second fiscal quarter in March, but the forecast assumes that the seating and business hours of the cafe will be close to full capacity by then.
Some full-service catering companies, such as Texas Roadhouse and Darden Restaurants, associate their sales recovery directly with relaxed catering restrictions.
The cold weather means that many restaurants that rely on terrace dining will be hit. A Bank of America survey of 1,000 consumers found that 60 degrees Fahrenheit is the critical temperature for most diners. The cheesecake factory’s reliance on outdoor dining led the bank to downgrade its stock in August.
For fast food chains, it will be easier to take new restrictions in large steps, because fast food chains’ reputation for convenience and low prices makes the industry rebound faster than the entire industry. For example, compared with the same period last year, the number of customers ordering food through traffic lanes increased by 30 million in Taco Bell of Yum!
Yum Group CEO David Gibbs told analysts on Thursday: “We know this is an unstable environment, as we have seen in Europe, this is not something we can predict and guide 2021. Years of the environment.” “Based on their recovery so far, we are indeed confident in our team, and no matter what actions we take, we will be able to work towards this goal.”
For rare restaurants that flourished during the pandemic, the new restrictions will not pose a threat. Although the restaurant has been closed for more than seven months, Wingstop’s sales surged during the pandemic. Instead, chicken wing chains rely on their technology investments and the popularity of customers ordering food delivery.
Spokesperson Megan Sprague said in a statement to CNBC: “Demonstrates the strength of our business model. We have achieved positive results throughout the pandemic. The third quarter of 2020 Total same-store sales increased by 25.4%.”