One of the industries that has been hardest hit by the coronavirus shutdown of American businesses is the food service trade. In just the first three weeks of March, restaurant sales nationally plummeted 47%. This is due largely to the fact that restaurants all over America are now temporarily limited to providing dine-out services only. (This rule has been applied by the governments of every state except South Dakota, according to a guide to state coronavirus lockdowns published by the Wall Street Journal.)
Many of these restaurants are carrying on as best they can, providing customers with food and drink on an off-premises basis, with even fancy restaurants offering take-out and delivery during the coronavirus crisis.
Other places are simply hunkering down for the duration of the crisis, furloughing or firing all or most of their employees and waiting for the moment they’re permitted to reopen. Others have converted themselves into community kitchen operations to feed the needy. But not all establishments will survive the pandemic, no matter what they do.
Because restaurants tend to operate with substantial debt and on small profit margins at the best of times, a long-term closure inevitably means death to some. According to a survey conducted in late March by the National Restaurant Association, 3% of operators reported that they had already permanently shuttered their eateries, while 11% of the remainder said that they might well close within the next 30 days. The California Restaurant Association, for its part has predicted that without major government assistance, as many as 30,000 eating places in the Golden State will go out of business.
24/7 Tempo has assembled a list of 50 popular restaurants and restaurant chain units across the country that have announced that they will not be reopening even after restrictions have been lifted (as they already have been in an increasing number of states). These include everything from a classic hot dog joint to a multi-unit buffet operation to one of Manhattan’s most famous fine-dining venues. Some of these had barely gotten started when the shut-down orders came, while others had been around for many decades.
In a few cases, the restaurants probably would have closed soon anyway for other reasons, but the pandemic hastened their demise. In other cases, the owners ran the numbers and realized it wouldn’t make sense to reopen — that they would never be able to make up for lost revenue.
Unfortunately, this list will almost certainly continue to grow as the crisis drags on and restaurants that had originally planned to reopen realize that they, too, must shut down for good. These are just more examples of U.S. industries being devastated by the coronavirus.
Sponsored: Find a Qualified Financial Advisor
Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.