Independent Restaurants Stage A Comeback

Independent restaurants are recovering well from the pandemic despite bearing the brunt of COVID-era lockdowns and restrictions, according to a new report from The NPD Group.

Independent restaurants with one to two locations still represent 53% of all restaurants in the US, NPD’s Fall 2021 ReCount restaurant census reveals. Such locations slumped by 8%, or 28,399 units in 2020, but increased by 1% or 2,893 by the end of last year.  Independent locations are also growing in seven of the nine census locations and in large cities like Los Angeles, Dallas-Fort Worth, and Seattle-Tacoma.

Independent restaurant operators are also increasing their spending and orders from broadline foodservice distributors, with an increase of 27% year-over-year in the 12 months ending March 2022 compared to the same period a year ago and 5% above the pre-pandemic level in the period ending March 2019. Dollars shipped from broadline foodservice distributors to independents were up 47% in the year ending March 2022 compared to the same period a year ago, a 25% increase compared to the pre-pandemic period in the 12 months ending March 2019, according to NPD’s SupplyTrack service.  

Consumer online and physical visits to independent restaurants increased by 12% year-over-year in March and are now 7% below the pre-pandemic level. Visits to independent full service restaurants, which comprise 63% of all independent restaurants, were up 19% year-over-year in March, while quick service independent restaurant traffic increased by 5%. 

“The pandemic lockdowns and restrictions were particularly tough for Independent restaurant operators since they have fewer resources and capital than chains to withstand tougher times,” says  David Portalatin, NPD Food Industry Advisor and author of Eating Patterns in America. “Some independents didn’t make it, but many did, and they are thriving and contributing to the overall vibrancy of the US foodservice market.”