food & bev

Restaurants Face New Challenges Under Capacity Caps

All those plexiglass barriers add up.
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John Tlumacki/The Boston Globe via Getty Image

less than 3 min read

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

Restaurants in at least 15 states have been asked to reduce capacity to 25% or 50% in order to reopen, the WSJ reports. That could mean more pool noodle distancing hats for diners and mounting costs for restaurant owners.

Explain it like I need a kids’ menu

A 50% occupancy cap on a 75-seat restaurant would mean only 20 diners can enter, after employees. In a recent study of NYC restaurants, 61% would permanently close with capacity limits below 70%.

  • Materials that promote distancing, like plexiglass barriers between tables, also come with party of 15 price tags.

National chains are hurting too. Applebee’s, Denny’s, and IHOP franchisees have closed locations or requested rent relief after losing millions. TGI Fridays could permanently close 20% of its restaurants.

Looking ahead...more restaurants could join Le Pain Quotidien and file for Chapter 11 bankruptcy. Subsisting on takeout orders already put them on the edge, so reopening at less than full capacity may do them in.

Retail news that keeps industry pros in the know

Retail Brew delivers the latest retail industry news and insights surrounding marketing, DTC, and e-commerce to keep leaders and decision-makers up to date.

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