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6 Months Later – The Overview of Shutdown of the Restaurant Industry

By Jolien Demeyer in2020, Closures, US
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1 Sept 2020 – The Shutdown of the Restaurant Industry: The Widespread Impact (US & Canada)

Many cities have been experiencing a growing restaurant scene over the last few years. Lots of restaurants and concepts started to pop-up the ground, and it has been considered as the “golden age” for restaurants.

For now, that restaurant scene is virtually non-existent, and it looks nothing like it did six months ago because of COVID-19.

While some restaurants are trying to keep their doors open with take-out, delivery, outdoor seating… many have closed their doors, for now.

Nearly 40,000 Restaurants Have Permanently Closed Due to COVID since March 2020 in The US.

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What do we see in The US:

– Since the beginning of March 2020, nearly 40,000 restaurants have permanently closed as a result of COVID-19. Still it is too soon to say how COVID-19 will transform the restaurant industry, but for the next year, things will be anything but stable for restaurants, their employees and those industries that support them.

– The top five states with the sharpest increase in permanent closures in the last months — California, Texas, New York, Florida, and Georgia, accounting for 37% of all the US closures. Florida is increasing vs. last month, and Georgia is entering the top 5, surpassing Illinois.

– Traditional restaurants and casual dining endured the highest closure rate with 1,585 total business closures, or 43 % of which are permanent. Followed by Quick Service Restaurants and Fast Food & Snacks with 823 closures or 22%.

– Foodies are still eager to support their favorite local restaurants. The industry was already moving toward takeout and delivery, and this will only be accelerated now that many local restaurants have reinvented themselves as takeaways and/or food deliveries or started with outdoor seating. Read more and get free data samples

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What do we see in Canada:

– In August 2,484 restaurants have permanently closed as a result of COVID-19.

– The top three cities with the sharpest increase in permanent closures in August: Toronto (accounting for 9%), Montreal (4%) and Calgary (3%)

– Traditional restaurants and casual dining endured the highest closure rate with 793 total business closures, or 32 % of which are permanent. Followed by Quick Service Restaurants and Fast Food & Snacks with 458 closures or 18%. And Cafè-Restaurant, Family style Diner with 407 outlets or 16%.

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