A National Restaurant Association survey conducted Nov. 17–30 of 6,000 restaurant owners and operators show conditions for restaurants nationally and in the state continue to deteriorate.
Thirty-seven percent of operators in the state say it is unlikely their restaurant will still be in business six months from now if there is no additional financial relief from the federal government. Consumer spending in Wisconsin restaurants remained well below normal levels, with 88% of state operators saying their total dollar sales volume in October was on average 39% lower than it was in October 2019. Other key survey takeaways include:
- 81% of operators expect their sales to decrease from current levels during the next three months, with only 2% expecting sales will increase.
- Even though sales were significantly lower for most restaurants, costs did not fall proportionally. Labor costs as a percentage of sales were higher for 56% of the state’s operators than before the COVID-19 outbreak. Only 25% say their labor costs are lower.
- 89% of respondents say their restaurant’s profit margin is lower than it was before the COVID-19 outbreak.
- 53% of respondents are currently more than 20% below normal staffing levels.
