Below is a brief excerpt from a complementary research note written by our Consumables analysts Howard Penney and Daniel Biolsi. We are pleased to announce our new Sector Pro Product Consumables Pro. Click HERE to learn more.
Several states have tightened restrictions on bars and restaurants in the last couple of days. Members of Joe Biden’s COVID advisory team have spoken publicly of additional restrictions to stem the increase in infections.
National and regional chains of restaurants have outperformed their smaller competitors during the pandemic, but closures have been widespread. As measured by Womply, a CRM provider, the closure rate of local restaurants and bars can be seen in the following charts.
The closure rate of local restaurants has been slowly increasing since the low of 19% at the end of June to 25% at the end of October. For restaurants and lounges, the percentage processing transactions at the end of October was 34%, improved from the recent high of 40% at the end of August.
Additional restrictions should drive the closure rate higher, leading to more bankruptcies unless another stimulus package was passed. A higher closure rate will help the survivors with a less competitive environment on the "other side" of the pandemic.