When Covid struck, restaurants were among its first and hardest-hit victims. First closed altogether, then allowed to reopen with fewer tables, then fully restored to normal occupancy, restaurateurs might have thought the worst was over.

If so, they failed to take into account the effect of hybrid work, especially in downtown areas dependent on hungry office workers for sales. As of March 2023, average office utilization is hovering near 50% in the 10 largest U.S. office markets, according to figures from Kastle Systems quoted in a CBRE report. Much of the remaining 50% of office utilization is taking place in suburban homes.

More companies now require employees to come into the office a few days a week. However, traditional workspaces are often sparsely populated on Mondays and especially Fridays, making it difficult for restaurants in downtown areas or with a high concentration of offices to figure out how to deal with uneven demand. The suburbs, however, are overperforming, CBRE noted.