Full service restaurants (FSRs) had their share of troubles to recover from over the years. Restaurants that were still recovering from the Great Recession which ended over ten years ago were now faced with mandated dine-in closures due to the recent COVID pandemic.

Most FSR businesses are on-premises sit down table service restaurants and visits to these FSRs in the April, May, and June quarter, the height of the dine-in closures, were down 47% as compared to the same quarter last year, reports The NPD Group. And, quick service restaurants (QSRs) that operate take-out and drive-thru's also declined by -17% during the same quarter.

The transition to an off-premise business during dine-in closures have been challenging for FSRs. Only 19% of FSR traffic was for off-premise consumption in February 2020, before COVID. And in June, as dining rooms were reopening, 55% of FSR traffic was for off-premises consumption. FSRs tried to pivot to save their businesses by ramping up delivery programs, streamlining their menus, and repurposing their parking lots as temporary drive-thru's, however, the shift to service their customers off-premises was difficult and costly.

Continue Reading for Free

Register and gain access to:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.