F&B challenged amidst reopening

May 10, 2020 | By RetailME Bureau

As the food and beverage (F&B) industry in the US prepares for phased reopening, operational and economic challenges prevail for both restaurant operators and landlords, indicates CBRE.

The COVID-19 pandemic has severely the $2.5 trillion F&B industry, with restaurants accounting for 60% of the 16.8 million jobs lost between March 19 and April 9, 2020 in the US. The National Restaurant Association estimates the industry lost more than $50 billion in sales in April as a result of closures.

Some restaurants that offered takeout/delivery service and curbside pickup were able to cover minimum expenses with ongoing off-premises services. However, this often generates only 10% to 20% of total sales and is insufficient to sustain the business.

Also read: Post-COVID Gulf retailers realign goals

In addition, CBRE also points towards growing concern about permanent closures due to the loss of sales, mounting debt and uncertainty of loan issuance and forgiveness under the Paycheck Protection Program in the US. A survey conducted by the James Beard Foundation on April 16 revealed that 28% of small and independent restaurant owners do not believe they can survive another month of closure. Furthermore, only one out of five are confident they can sustain their businesses until normal operations resume.

In any case, F&B is expected to take a while to return to the ‘old norm’ of dine-out social experience. Restaurants and cafés will reopen amidst a lot of stringent guidelines around sterilisation and limited seating capacity. CBRE recommends the F&B industry to think of new ways of generating revenues – such as offer drive-thru option, curbside pickup, contactless doorstep delivery and even create personalised packs for stay-at-home family meals.


For all the latest retail news from Middle East, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page.



Previous Article Next Article


UAE-based concept grocery retail chain, Grandiose has opened a new supermarket within 

Continue Reading

November 22, 2020 | By RetailME Bureau

US-based fast food chain, Nathan’s famous Inc. brings another New York classic, 

Continue Reading

November 12, 2020 | By RetailME Bureau

Dubai-based Union Coop, the leading Consumer Cooperative in the UAE, opened its 

Continue Reading

November 11, 2020 | By RetailME Bureau

UAE homegrown marketplace, Noon.com has announced its Yellow Friday sale from November 

Continue Reading

November 5, 2020 | By RetailME Bureau

UAE-based Al Maya Group officially launched an exclusive range of Woolworths products 

Continue Reading

October 30, 2020 | By RetailME Bureau

Abu Dhabi headquartered LuLu Group has opened its latest hypermarket at Khalifa 

Continue Reading

October 29, 2020 | By RetailME Bureau

elGrocer, the grocery delivery app with ties to some of the major 

Continue Reading

October 25, 2020 | By RetailME Bureau

Jones the Grocer set to open its doors at Dubai’s newly launched 

Continue Reading

October 18, 2020 | By RetailME Bureau

Saudi-based operators of hypermarkets and supermarkets BinDawood Holding Company has completed the 

Continue Reading

October 16, 2020 | By RetailME Bureau

The regional food and grocery delivery app Talabat has announced the expansion 

Continue Reading

October 15, 2020 | By RetailME Bureau

Walmart is hiring 10,000 new employees in Canada for positions in stores 

Continue Reading

October 14, 2020 | By RetailME Bureau

British quality grocery retailer Waitrose & Partners launched its first e-commerce platform 

Continue Reading

October 11, 2020 | By RetailME Bureau

Download Images RetailME Magazine