Survey Regarding Current Impact of Pandemic on Wisconsin Restaurants

The National Restaurant Association conducted a survey of 4,000 restaurant operators nationwide from September 7-15, 2021. Although restaurant sales improved from the early months of the pandemic, business conditions remain far from normal for many Wisconsin restaurants. 70% of operators think it will be more than a year before business conditions return to normal for their restaurant. Eleven percent of operators say business conditions will never return to normal for their restaurant.

Wisconsin Results

Restaurant Business Conditions

• Although restaurant sales improved from the early months of the pandemic, business conditions remain far from normal for many Wisconsin restaurants. Overall, 52% of Wisconsin operators say their total sales volume in August 2021 was higher than it was in August 2020. Only 35% of operators reported a same-store sales decline between August 2020 and August 2021. 
• When compared with August 2019 pre-pandemic levels, a majority of operators say their sales were lower in August 2021. 71% of Wisconsin operators say their sales volume in August 2021 was lower than it was in August 2019. Only 13% reported higher sales compared to August 2019.
• Business conditions deteriorated in recent months, according to restaurant operators. 38% of Wisconsin operators say business conditions for their restaurant are worse now than they were 3 months ago. Only 16% say business conditions improved during the last 3 months.
• The delta variant negatively impacted the restaurant industry in recent weeks. 68% of operators say their restaurant experienced a decline in customer demand for indoor on-premises dining in recent weeks, as a result of the increase in coronavirus cases due to the delta variant.
• Most Wisconsin restaurant operators do not expect a return to normal business conditions any time soon. 15% of operators think it will be 7-12 months before business conditions return to normal for their restaurant, while 70% think it will be more than a year. An additional 11% of operators say business conditions will never return to normal for their restaurant.

Restaurant Jobs

• Although the industry added back many of the jobs lost during the pandemic, a majority of restaurants remain understaffed. 93% of Wisconsin operators say their restaurant currently does not have enough employees to support its existing customer demand.
• Among restaurants that are currently understaffed, 85% of operators say their restaurant is more than 10% below necessary staffing levels. 41% say they are currently more than 20% below necessary staffing levels.

Costs Are Up – Profitability is Down

• 89% of operators say their total food costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 4% say their food costs make up a smaller proportion of sales.
• 78% of operators say their total labor costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 11% of operators say their labor costs declined as a percent of sales.
• 67% of operators say their total occupancy costs are higher than they were prior to the COVID-19 outbreak. None say their total occupancy costs are lower.
• 81% of Wisconsin operators say their profit margin is lower than it was prior to the COVID-19 outbreak. Only 4% of operators say their profit margin is higher.
• Many Wisconsin operators also reported a deterioration of profitability during the last few months. 48% of operators say their restaurant is less profitable now than it was 3 months ago. Only 11% of operators say their restaurant is more profitable now than it was 3 months ago.

Source: National Restaurant Association, national survey of 4,000 restaurant operators conducted September 7-15, 2021

The Wisconsin Restaurant Association is one of the largest trade associations in the state with over 7,000 member locations throughout Wisconsin.  The mission of the Wisconsin Restaurant Association is dedicated to the success of the Foodservice and Hospitality Industry.  The Association advocates on behalf of the restaurant industry, provides a voice for the restaurant industry to consumers and the media and provides access to information and services to help members better run their businesses.  WRA represents the entire foodservice industry which includes over 15,000 licensed food service establishments.

WRA membership includes a wide range of foodservice businesses representing virtually every size and style of restaurant in the state. Members include fine dining establishments, mom-and-pop supper clubs, small cafes, quick service restaurants, corporate chain restaurants, institutional food service operations, catering businesses and hotel and motel foodservice among others. 

- END -