Friday, August 19

Restaurants in the US, worse than three months ago: due to covid, labor shortages and high costs of supplies

Most restaurant operators have a pessimistic view for the business in the next three months.

Photo: Lorenzo Messina / Pexels

According to a survey by the National Restaurant Association (NRA), returning to normality is proving difficult for the sector, as more than half of restaurant operators say that trading conditions are worse now than three months ago, published CNBC.

The association consulted 4,000 operators between Sept. 7-15 and is using the study to lobby against President Joe Biden’s plan to increase the corporate tax rate.

The body also asks legislators to replenish the Restaurant Revitalization Fund, created during the pandemic to help the sector.

Sean Kennedy, Vice President of Public Affairs for the NRA, wrote a letter to Congressional leaders saying: “Restaurants still need help today and overwhelming them with expensive new obligations will only prevent progress to turn the tide of the restaurant. Recovery”.

According to information from the survey, the delta variant, understaffed restaurants and higher food costs They are among the problems that are affecting the industry. In this framework, only 9% of those consulted said that commercial conditions improved in the last three months.

The recent increase in Covid-19 infections has generated uncertainty about customer demand and possible new government restrictions. 45% of those surveyed said their locations weren’t open to full capacity to eat indoors.

The industry is also facing a labor shortage. 83% of respondents said they are at least 10% under-staffed, while 39% are missing more than a fifth of their workforce. Given this, restaurateurs are reducing their hours, cutting menu items and reducing their attention span, which is detrimental to their income.

The menu is also being affected by food supply challenges. Of those consulted, only 5% had no delays in the supply or shortage of beverages and food during the last three months.

In addition, the total food costs also increased to 91% of operators compared to pre-pandemic levels, reducing their profits.

According to the study, operators have a pessimistic view for the next three months, as 55% expect their sales to be lower.

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