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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