It is no secret that the restaurant business changed during the pandemic. In the beginning, mandated business closures halted indoor dining and then social distancing kept restaurants from filling and turning tables—the traditional revenue generating model for the industry. Instead, restaurants adapted to take-out orders and delivery services, changing the economics of the business, and it will likely mean changes to lease structures as well.
In the past, restaurants have served two purposes. They have delivered meals to customers, but there is also a community dining aspect to it that is somewhat interrupted during the pandemic," Jason Grinnell, a partner at Thompson Coburn LLP, tells GlobeSt.com. "A lot of restaurants were forced to adapt and embrace the food delivery partnerships. They had to embrace that sort of piece just to try to stay open and keep their customer base happy."
Now, instead of turning tables, restaurants are focused on producing meals. "They have to maximize the number of meals that they are producing," says Grinnell. "That has really changed the economics for how restaurants operate."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
Already have an account? Sign In Now
*May exclude premium content© 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.