[Data] The State of Restaurants During the COVID-19 Situation

The restaurant industry is in flux, and many restaurateurs lack access to the information and resources required to make decisions about their business. 7shifts is sharing insights about communication, sales, and staffing for restaurateurs to understand both the global and regional impact of COVID-19.

Looking at the data inside the 7shifts labor management platform—from sales activity to staffing and communication—we see serious changes as restaurant owners struggle with reduced sales and increase communication with staff during the COVID-19 situation. The latest breakdown of the restaurant labor management landscape is below.

Last updated April 8th, 2020.

How restaurants are impacted by COVID-19

Closes

Many restaurants have had to close their doors due to COVID-19. Here’s what our data tells us.

• There’s a 45% decrease in restaurant locations still scheduling their staff—meaning 45% of restaurants have likely closed their doors
• There’s been a 97% increase in shift cancellations when comparing a regular February weekend with a late March weekend

The end of March is when things started to get serious for restaurants—with a 97% increase in shift cancellation. Many restaurants may now be taking more drastic measures during the COVID-19 crisis by temporary shutting their doors or laying off staff.

Sales

• Average daily restaurant sales have dropped by 43%
• Average weekly restaurant sales have dropped by 68%

Sales have dropped dramatically across the board as more restaurants are forced to close dining areas—or their doors completely. Understanding how to pivot your business to a takeout / delivery-focused model is crucial.

Recommended Reading: Growing Delivery & Takeout Channels at Your Restaurant

Announcements

• March had the most Announcements posted in any month
• Average daily Announcements initially increased by 100% when comparing February to March, but have now dropped 10% as more businesses close

As Announcements haven’t dropped as severely as other actions, it’s clear that restaurants are still using Announcements to update their staff about the situation

Chats

• While average weekly chats originally grew by 12% at the start of the crisis, they have now decreased by 68% when comparing early Feb to early April
• Average daily Chats have dropped by 70%

Communication across teams has increased dramatically as managers, owners, and staff navigate the COVID-19 situation in their community. Staying connected with staff is essential, so consider adopting tools like 7shifts to send company updates and message your team on-the-fly to keep them safe, healthy, and prepared.

Shifts

• Average weekly shifts scheduled are down 70% when comparing early Feb to early April
• Ontario has taken the biggest hit, with average weekly shifts scheduled down 78%

With the current COVID-19 situation, managers are pivoting to more takeout and delivery options and scheduling fewer shifts for their staff. With cut hours, staff are looking to government and organizational relief funds to support themselves during this time.

Recommended Reading: COVID-19 Restaurant Relief Programs

Restaurant data breakdown by region

New York restaurants

When comparing  February to April for New York restaurants:

• Average weekly Chats by New York restaurants have decreased by 68%
• Average weekly Announcements have decreased by 43% in New York
• Average weekly sales have dropped by 52%

California restaurants

When comparing  February to April for California restaurants:

• Average weekly Chats by California restaurants have decreased by 68%
• Average weekly Announcements have decreased by 18% in New York
• Average weekly sales have dropped by 50%

Washington restaurants

When comparing  February to April for Washington restaurants:

• Average daily Chats by Washington state restaurants have increased by 27%
• Average weekly Chats have increased by 21%
• Average weekly sales have dropped by 56%

Ontario restaurants

When comparing  February to April for Ontario restaurants:

• Average weekly Chats have decreased by 76%  
• Average weekly Announcements have dropped by 57%
• Average weekly sales have dropped by 48%

BC restaurants

When comparing  February to March for BC restaurants:

• Average weekly Chats have dropped by 77% in BC
• Average weekly Announcements have dropped by 22%
• Average weekly sales have dropped by 71%

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