For the third consecutive week, restaurant industry transactions continued to show signs of life.

Much has been made about how stay-at-home orders continue to impact restaurants and other foodservice operators, and rightfully so. But foodservice operators are not the only ones trying to come to grips with what the new normal will mean for the industry.

As the conversation gradually shifts toward reentry and what that could potentially look like, the foodservice industry may have gotten a glimpse of what’s to come last week when Georgia allowed restaurants to open their dining rooms.

For the second consecutive week the restaurant industry has some positive news on which to chew.

If there’s any one heartwarming aspect to the COVID-19 pandemic, it’s the way operators, consultants and other members of the industry continue to come together in support of one another.

As the COVID-19 pandemic spread, it sent many of us into shelter-at-home mode, separated from our workplaces. Here at Chrane, our immediate focus was the safety of our team. That focus quickly shifted to the sustainability of our local restaurants, bars, breweries and the many small (and large) businesses in foodservice.

When the impact of the COVID-19 pandemic is finally behind us and surviving restaurants are able to offer a full array of food options again, the industry’s operating environment will be very different than it was before. It’s likely a sizable number of units will permanently shutter because owners did not have the financial resources to hang on while any number of local, state and federal restrictions were placed on their everyday operations.

The speed, scope and ramifications of coronavirus-driven societal and industry changes are stunning. Unlike during the economic recession of 2008, when the fast-casual segment rose to prominence and QSRs upped their game as budget-conscious customers traded down, this global health pandemic leaves few seats for winners at the table. 

A frontline look as one hospital foodservice team adapts to service during a pandemic.

Despite still operating at historic lows compared to one year ago, the restaurant industry is slowly starting to claw its way back.

While not immune to some of the COVID-19 related factors that impact other parts of the foodservice industry, design firms continue to trudge forward working remotely. Exactly how long this will be the case, though, remains anyone’s guess.

Has the restaurant industry hit rock bottom? Well, data from one market research firm seems to indicate that may be the case as the crisis surrounding COVID-19 continues.

The foodservice operator community represents a pretty diverse collection of businesses. So, it comes as no surprise that how concerned an operator is about whether the COVID-19 crisis will break their business varies by segment.

Restaurant customer transactions declined by 42% for the week ending March 29 compared the same week in 2019, per data from The NPD Group.

COVID-19’s economic impact on restaurant operators continues to be well documented by mainstream media and trade press alike. But this pandemic and the steps necessary to hasten its end also take a toll on various members of the supply chain that support foodservice operators across all industry segments, including service agents. Like their restaurant customers, service agents have had to make some very difficult choices in recent days.

As the restrictions on the way restaurants can serve consumers continue to become more widespread due to the ongoing COVID-19 pandemic, operators from all industries face daunting challenges when it comes serving customers.

The good news is restaurants remain top of mind for consumers. The bad news is consumers are not entirely comfortable using restaurants.

The historic $2 trillion bipartisan economic stimulus bill was seen by many as a measure to provide relief to both consumers and businesses.

As the restaurant industry comes to grips with its temporary new normal, which includes dark dining rooms and consumers sheltering in place, individual members of the supply chain continue to adapt their approach, too.

Take, for example, manufacturers’ reps.

In response to the COVID-19 pandemic, restaurant dining rooms continue to go dark across the country. As a result, restaurant and bar operators now offer modified service in the form of takeout, curbside pickup or delivery. Unless the operator is a quick-service or fast-casual concept that’s used to preparing its food for travel, making this transition is not as easy as it may seem.

Consumers’ fears surrounding eating in restaurants continues to grow, per new research from Datassential. Just over a quarter (27%) of consumers surveyed plan to avoid eating at restaurants (up 8% since Datassential’s first survey on March 10); 41% of consumers are still nervous about eating out but still plan to do so (up 2%); and 32% of consumers have no concerns about eating in restaurants (down 10%). The increased fear persists across demographic groups, with particularly large spikes among Boomers (+12%) and Gen X (+9%).

The effects of the coronavirus slam the foodservice industry. Hooter’s sees sports betting as part of its future. Hy-Vee supermarkets will convert 22 of its Market Grill Restaurants to Wahlburger restaurants. 7-Eleven tests a chicken concept in New York.

For the past few years, off-premises consumption has played a prominent role in the restaurant industry’s ability to continue to post positive, real growth. And with a variety of states and other municipalities banning consumers from dining on-premises it seems that carryout, delivery and even curbside pickup should be poised for growth as the COVID-19 crises plays out.

The coronavirus crisis continued to evolve over the weekend forcing municipalities to take dramatic steps and various operators to adapt their approach to serving customers.

The COVID-19 virus has taken the world by storm and the foodservice industry is no exception. From changing customer eating patterns to operators updating their approach to service, the industry keeps rolling with the changes from one minute to the next.

While the cancellations of sporting events and, closer to home, foodservice-related conferences continues to make headlines, foodservice operators from all industry segments will need to come to grips with consumer concerns caused by the rapid evolving pandemic caused by the COVID-19 virus. As a result of the coronavirus, nearly 60% consumers are now concerned about eating out and roughly 1 in 5 consumers have definitely avoided doing so, according to a study by Datassential.