The COVID-19 Crisis Will Likely Lead To A Massive Shakeout In The Restaurant Industry

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Predictions about the restaurant industry were grim even before rising coronavirus cases led to a second wave of closures.

Bagley said all of these factors—consumer trepidation, surging cases and costs involved with re-closing—has led to an especially ominous picture for restaurants.“What we’re seeing now is a real dichotomy. You’ve got larger brands, franchised brands and operating groups looking at this as an opportunity,” he said. “We work with mid-tier brands that are looking to buy and expand in a slowdown and we are expecting robust activity in M&A there.

“It’s apparent that the road to recovery is going to be a challenging one for the U.S. restaurant industry,” NPD food industry advisor David Portalatin said in a release. “Consumer demand for restaurant dining is there as well as a want for normalcy, but there is nothing normal about this situation.”

“You’ll see a lot of pain and closings and some of these lower-tier, family-run places will go out of business. But, on the other side of this, somebody will open in a lot of those locations,” Bagley said. “Those places will come back.”

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The whole economy is affected.🙄

Forbes reporting on the Obvious News

“Kids, a long time ago we used to eat inside the restaurant! Really daddy?”

So what? Denny’s, McDonald’s, IHOP, and Friday’s always sucked anyway. Good riddance to bad rubbish.

Just figured this out?

It already has.

Definitely.

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