Restaurant revenue has fallen, despite a delivery increase

U.S. restaurant revenue is falling as catch-up and delivery orders do not make up for the sale of a missed dinner.

UBS Evidence Lab found that dinner restaurant sales were down 69% in the week ending November 29th. In that same week, sales and delivery rose 59%. But the total revenue of restaurants remained well in the red.

Industry experts predicted that winter would further exacerbate eating problems during the pandemic of coronavirus infection. Cold temperatures mean that fewer customers are willing to eat outdoors, even if the building provides heat lamps and blankets.

Winter weather has also reflected in an increase in new Covid-19 cases, making consumers more cautious about eating out and leading regulators and mayors to impose another round of restrictions. restaurants. New York City has banned indoor dinner again, while Los Angeles has banned all personal dining.

There is no doubt that the pandemic has moved to accelerate food delivery, with eMarketer predicting that third – party digital sales will more than double this year to $ 44.94 billion.

Investors have closely followed the growth in third-party delivery companies. Shares of DoorDash, which made its public debut in early December, are up 55%. Its market value of $ 50.3 billion exceeds the value of Chipotle Mexican Grill, owner of Taco Bell Yum Brands and Domino’s Pizza.

However, delivery and sales will not be enough to save some restaurants if these revenue trends continue. The National Restaurant Association estimates that 110,000 premises have already closed due to the pandemic. Covid ‘s new relief bill passed by Congress late Monday means restaurants will be able to apply for Paycheck Protection Program funding, but trade groups are hoping for more targeted relief when the President arrives. Joe Biden in office.