511 - Market Update Q1 2021

The Market Place Vaccine availability, increasing adaptation and the prospect of government recovery assistance have raised business confidence, but pace of recovery will be slow and subject to set-back through 2021, leaving a mixed and apprehensive business environment.

▪ Restaurant Industry Reels –

Warm-weather provided outdoor options for restricted full-service restaurants, and by July, the industry clawed back to pre-pandemic levels. However, late Fall temperatures chilled the industry’s 2020 rally and recession returned – 110,000 (17%) of restaurants have shuttered since March 2020 and less than half intend to reopen December 2020 NRA Operator Survey – 372,000 Restaurant and Bar jobs were lost in December, bringing total 2020 job cuts in this sector to 3.9 million (23%) US Bureau of Labor Statistics – The Quick Service sector ended 2020 slightly under 2019 revenue level, as drive-through and delivery geared facilities, thrived; Chipotle announced plans in January plans to hire 15,000 new workers Nations Restaurant News ▪ Demand Patterns for Supplies are Shifting … Some, Permanently – Gloved and masked servers have become critical customer safety branding issues for restaurants serving on-premise – Demand for individually-wrapped cutlery, straws, stirrers and other disposables that limit the potential for spread of contaminants is rapidly increasing and expected to endure, post-pandemic – Vaccine inoculation teams are expected to drive significant incremental demand for disposable gloves ▪ Emerging Concepts in Away-from-Home Dining are Here to Stay − “Ghost Kitchens” single-company, mass-production sites that make and market meals for on-line home delivery customers under multiple brand names − Return of the walk-up takeout window for pickup and delivery service – no seating, minimal footprint, low rental expense


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