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Below is a brief excerpt from complimentary research note written by our Consumer Staples analysts Howard Penney and Daniel Biolsi. If you are an institutional investor interested in accessing our research email sales@hedgeye.com |
Florida’s Phase 1 reopening plan began on May 4 when restaurants and retailers were allowed to operate at 25% capacity.
As one of the earlier states to start to reopen, Florida’s trends may point to the shape of the recovery for the country. Bars and nightclubs were closed in the state on March 17.
The closure rate of bars and lounges in the state was 70% when the state lifted the restrictions on indoor visits, according to Womply (a CRM provider). 10% of the bars and lounges reopened over the month before a recent spike of additional closings has taken the percentage closed to 64%.
Many restaurants and bars have said the restrictions on the indoor capacity of 25% or 50% make it very difficult to operate a profitable business. On-premise alcohol consumption will have a lengthy recovery period if bars are slow even to open.
The average daily revenue for open bars and lounges was up 53% on May 27, but that removes the closed businesses, as seen in the following chart.
Bars that have been able to open with outdoor areas have benefited while many others remain closed.
The average daily revenue for all bars and lounges in the state has steadily improved as well but was still down 45% on May 27.
