As coronavirus cases in the United States increase and many states relocate food indoors, restaurant transactions have stagnated.
The NPD Group tracks transactions at 75 restaurant chains that account for more than half of total commercial restaurant traffic in the United States. According to their data, the US restaurant industry began reversing declines in transactions in April and was approaching the previous year’s transaction levels in mid-June.
Then the Covid-19 cases began to emerge again. Some states began to re-close bars and canteens, or at least restrict the ability to eat indoors, such as in Texas, after some outbreaks went back to such establishments.
Research suggests that the coronavirus may be transmitted through airborne particles in indoor confined spaces, a position the World Health Organization said it cannot rule out. Health experts say eating or drinking indoors is more risky than outdoors, where the virus can dissipate more quickly.
Consumers are avoiding more restaurants, bars, and coffee shops now, according to a Coresight Research survey of more than 400 respondents. On July 22, 61.9% of respondents said they were avoiding those establishments, up from 61.2% the previous week.
Full-service restaurants, which have already been hit harder by the pandemic, appear to be hit harder by the behavior change. Fast food restaurants like McDonald’s and Chick-fil-A can rely on their driving lanes to drive sales, and their cheap offerings also appeal to cash-strapped consumers during the crisis.
Full-service restaurants, on the other hand, saw their transaction dips reverse faster in May and June as states reopened dining rooms. And many of those chains were lagging behind even before the pandemic, which spelled trouble for their ability to stay afloat.
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