The chart shows the weekly American restaurants
Source: UBS Evidence Lab
Restaurant sales in the US are declining as takeout and delivery orders fail to make up for lost dinner sales.
UBS Evidence Lab found that restaurant dinner sales were down 69% in the week ending Nov. 29. In the same week, sales of takeaway and delivery services increased by 59%. But the total restaurant turnover remained well in the red.
Industry experts predicted winter would exacerbate dining options during the coronavirus pandemic. Cold temperatures mean fewer patrons are willing to eat outside, even if the establishment provides heat lamps and blankets.
The winter weather has also sparked a wave of new Covid-19 cases, causing consumers to be more cautious about dining out and prompting governors and mayors to impose a new set of restrictions on restaurants. New York City has again banned indoor dining, while Los Angeles has discontinued all in-person dining.
The pandemic has no doubt accelerated the shift to food delivery, with eMarketer predicting that total third-party digital sales will more than double this year to $ 44.94 billion.
Investors have been closely following the growth of external delivery companies. Shares of DoorDash, which made its public debut in early December, are up 55%. Its $ 50.3 billion market value surpasses Chipotle Mexican Grill, Taco Bell owner Yum Brands, and Domino’s Pizza.
Still, delivery and outlet sales won’t be enough to save some restaurants if these revenue trends continue. The National Restaurant Association estimates that 110,000 establishments have already closed due to the pandemic. The new Covid waiver bill passed by Congress late Monday means restaurants can apply for funding from the Paycheck Protection Program, but trade groups are hoping for more targeted help when President-elect Joe Biden takes office.