This chart shows the weekly for American restaurants
Source: UBS Evidence Lab
US restaurant revenue is falling as takeout and delivery orders fail for lost dine-in sales.
UBS Evidence Lab found that dine-in restaurant sales fell by 69% in the week and ended on 29 November. In the same week, takeout and delivery sales rose 59%. But overall restaurant revenue remained well in the red.
Industry experts predicted that the winter would further aggravate eateries during the coronovirus epidemic. The colder temperatures mean fewer customers are ready to eat outside, even though the establishment offers heat lamps and blankets.
The winter season has triggered an increase in new Kovid-19 cases, allowing consumers to be more cautious about eating out and leading governors and mayors to impose another round of restrictions on restaurants. New York City has once again banned indoor food, while Los Angeles has barred all individuals from eating.
The epidemic has undoubtedly accelerated the change in food delivery, with e-marketers predicting that third-party digital sales more than doubled to $ 44.94 billion this year.
Investors have closely watched developments in third-party delivery companies. The shares of DoorDash, which debuted publicly in early December, are up 55%. Chipotle Mexican Grill, Taco Bell’s owner Yum Brands and Domino’s Pizza have a market value of $ 50.3 billion.
Nevertheless, delivery and go-go sales will not 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 epidemic. The new Kovid relief bill passed by Congress late Monday meant restaurants would be able to apply for paycheck protection program funding, but trade groups are hoping for more targeted relief if President-elect Joe Biden assumes office.