The restaurant industry slowed in August

Restaurant sales slowed in August, according to Technomic./Photo: Shutterstock

There is growing evidence to suggest that the delta variant, and possibly labor and other challenges, is slowing the recovery of the restaurant industry.

The restaurant industry was down 1.9% in August from the same month two years ago, according to “Tindex,” the monthly index on the restaurant condition of sister company Restaurant Business. Technomic.

This represents a slowdown from 1.1% growth in July and 1.8% growth in June compared to 2019 figures.

This suggests that the company has been hit by the delta variant and potentially by a labor shortage that has resulted in reduced working hours at many restaurants of all kinds. “There are a few clear reasons for this softening,” Technomic chief executive Joe Pawlak said in a statement.

“First of all, of course, there are the heightened fears of the delta variant. The deceleration is also seen primarily in the travel and leisure segments, while the K-12 and college and university channels have shown growth. “

The August Tindex comes amid mixed reports of a potential slowdown. The National Restaurant Association said this week it has evidence that industry is going in the wrong direction because of the delta and some restaurant executives said their restaurant sales were hit due to the latest increase. But overall sales looked strong in August, and same-store sales rose 6.2% in the month, according to Black Box, although traffic remains down.

Technomic publishes its Tindex monthly and compares 2019 results. Tindex includes inflation and is built using a variety of data sets, including operator transactions, consumer visit tracking, and customer sales information. distributors. The data is then weighted and evaluated to align with a representative of the entire restaurant industry.

Technomic reports its Tindex on a basis of 100, so the Tindex in August based on a comparison with 2019 was 98.1. In July, it was 101.1.

Source link

About Francis Harris

Check Also

Is DoorDash making a mistake by expanding into Europe?

In a bold move for expansion, a food delivery and retail business DoorDash (NYSE: DASH) …

Leave a Reply

Your email address will not be published. Required fields are marked *