More foodservice businesses operating at a loss in January 2021

Published March 31, 2021

According to Restaurants Canada’s latest operator survey, a stunning 88% of respondents reported lower sales in January 2021 compared to January 2020. Of those that reported a decline, 83% said the decline in January was worse than the decline in December 2020.

Given the rising COVID-19 case numbers and subsequent government restrictions, 67% of all respondents said they were operating at a loss in January 2021. Another 15% said they were just breaking even. 

These results varied significantly by segment. 37% of quick-service restaurants were operating at a loss in January 2021 while 40% were earning a profit of 2% or more. By comparison, 71% of table-service restaurants and 72% of all other foodservice were operating at a loss in January 2021.

Given the recent challenges, four in 10 independent restaurants said they would be forced to close down permanently within the next six months if current conditions continue. Meanwhile, nearly half of chain respondents said they would have to close down at least one of their locations in the next six months if current conditions continue.

Click here for link to the full report. 

Restaurants Canada Digital

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