Survey: Restaurant Sales Growth Slowed in July
Consumer spending in restaurants rose for the third consecutive month in July, albeit at a much slower pace than the previous two months. Food-and-beverage establishments posted sales of $52.5 billion on a seasonally-adjusted basis in July, according to preliminary data from the U.S. Census Bureau.
Restaurant sales in July were up five percent from the previous month, which was substantially lower than the stronger gains registered in May (31.3%) and June (26.7%). July’s slowdown in sales growth was not surprising, as reopening plans were paused or rolled back in some parts of the country during the month.
While the seasonally-adjusted figures offer a directional look at spending trends from month to month, they don’t provide a complete picture of the sales losses that have been experienced by restaurants during the coronavirus pandemic. For this, the Census Bureau’s unadjusted data set is a better measure, because it represents the actual dollars coming in the door.
In total between March and July, food-and-beverage sales levels were down more than $131 billion from expected levels, based on the unadjusted data. Add in the sharp reduction in spending at non-restaurant foodservice operations in the lodging, arts/entertainment/recreation, education, healthcare and retail sectors, and the total shortfall in restaurant and foodservice sales likely topped $165 billion during the last five months, according to a release by the National Restaurant Association. To read the survey results, click here.
A separate survey gauged consumers concern of the impact of COVID-19 on businesses, with many worried that their favorite restaurants will not survive. Eighty-nine percent of adults said they are concerned that businesses in their community like restaurants may not be able to survive the economic fallout from the coronavirus pandemic. To see the survey results, click here.
Click here to access TRSA’s F&B Safety Guide for linen, uniform and facility services businesses serving restaurants. For more COVID-19 news, information and resources for your linen, uniform and facility services company, visit www.trsa.org/covid19.