This article was written by Kristi Turner, CMO of Compeat
Good News: Restaurant sales are still showing overall growth from May to June and the percent of restaurants closed is down to 20% in June.
Bad News: Protests and curfews caused restaurant week over week sales to decline in first week of June and spikes in Covid cases are causing a decline the last two weeks of June.
Let’s dig into the Good News in a little more detail:
- The cumulative increase of restaurant sales since our rock bottom week of Mar 28th through the end of June has averaged 250% nationwide with 12 states over 300%. Nevada who didn’t “reopen” for restaurant in-dining limited capacity until Mid-May has seen a 638% increase in restaurant sales since week of Mar 28th.
- Closed locations among Compeat customers is down to 20% in June compared to the worst week at mid-40% in March and early April.
- Compeat open locations continued to see an average of 15% week over week growth in restaurant sales the first half of June before a slowdown of growth hit the second half of June.
- June also brought the year over year decline in restaurant sales down to -30% among Compeat open locations for the first time since our worst week at -50% decline.
- The updated PPP rules on forgiveness that are more favorable for restaurants could help struggling restaurants survive. Listen to Compeat’s webinar here on the latest updates.
Then, there’s the Bad News:
- Restaurants can’t seem to get a break and in June two national incidents seem to have slowed the steady restaurant sales growth we were seeing in April and May.
- Protests and curfews across the country that peaked from May 26th– Jun 5th limited restaurant sales in several large metropolitan cities across the country.
- Then in mid-June a second wave spike of COVID cases in several states hit. There are now 11 states that have 1% or greater of COVID cases as a percent of population.
- A second wave of fear among consumers appears to be slowing the week over week restaurant sales growth in not only the states that have seen the recent spike but even in states that have not seen a spike.
As we enter the 4th of July holiday weekend which is usually a time of celebration and downtown fireworks, we find ourselves and restaurants with modified plans. What will restaurant sales data look like for the month of July is the question on all of our minds.
With consumers and restaurant operators all desperate to get back to business as usual, let’s hope the next few months gift restaurant operators some tailwinds versus the headwinds experienced in the last few months.
You can find all the latest industry data and tips for best practices on our Compeat COVID-19 resource page.
Sources and Disclaimers: The source for COVID-19 cases data as a percent of population as well as reopen vs closed states is the CDC website as of 6.30.20. Restaurant sales data is derived from all Compeat customers across the United States as of 6.30.20. Compeat has customers across different types of restaurants from fine dining to fast casual to quick service. However, we are heavily weighted toward fast casual concepts. There are certain states that have less restaurant locations than others. As such, data shared above should be taken with the above considerations.