Business picked up for the restaurant industry in June, but total sales still fell well below pre-pandemic months, according to an analysis of US Census Bureau data by the National Restaurant Association.
Restaurant and food service sales totaled $47.4 billion in June—marking the second straight month of growth after sales hit a nadir of $30 million in April. (Total restaurant sales were 39.5 billion in May, according to the association's report.) Between March and June, restaurants missed out on an expected $116 billion in total sales.
June's improved sales numbers were aided by many states and localities beginning to reopen after shutting down all but takeout food sales, the association report noted. But it's unclear whether that upward trajectory will continue now that COVID-19 cases are spiking in a growing number of states, which could prompt additional shutdowns in the restaurant and food service industry. California, for instance, in July banned indoor dining at restaurants in many of the state's most populous counties due to increases in COVID-19 cases.
The June sales numbers were about $18 billion less than the Census Bureau's seasonally adjusted sales figures for January and February, which averaged $65.5 billion. Seasonally adjusted sales figures are useful in gauging consumer behavior, according to the association's analysis. But they don't capture the full economic impact on restaurants as accurately as unadjusted figures, which calculate actual dollars flowing into restaurants. By that mark, restaurants and food services businesses have lost an estimated $145 billion in sales since the start of the COVID-19 pandemic, the restaurant association found.
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Karen Sloan
Karen Sloan is the Legal Education Editor and Senior Writer at ALM. Contact her at [email protected]. On Twitter: @KarenSloanNLJ Sign up for Ahead of the Curve—her weekly email update on trends and innovation in legal education—here: https://www.law.com/briefings/ahead-of-the-curve/
