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


It is the final week of the 27th edition of the Dubai 

Continue Reading

January 21, 2022 | By RetailME Bureau

Foodlink Global Restaurants & Catering Services, the F&B services enterprise in India 

Continue Reading

December 29, 2021 | By Zubina Ahmed

‘Tis the time to be jolly! The festive season is back. Celebrate 

Continue Reading

December 19, 2021 | By RetailME Bureau

“It sounds like this, Luh Pan Koh-ti-dyan and means ‘the daily bread’, 

Continue Reading

December 6, 2021 | By Zubina Ahmed

The long weekend might be over but the Etisalat Beach Canteen 2021 

Continue Reading

December 5, 2021 | By RetailME Bureau

UAE gears up to celebrate this year’s National Day celebrations in the 

Continue Reading

November 28, 2021 | By Zubina Ahmed

UAE-based Etisalat Group has signed an agreement with elGrocer, a leading online 

Continue Reading

November 18, 2021 | By RetailME Bureau

Amazon.ae announced that the 11.11 sale is back once again this year 

Continue Reading

November 8, 2021 | By RetailME Bureau

Abu Dhabi Cooperative Society’s COOP City store is now open in Lake 

Continue Reading

November 3, 2021 | By RetailME Bureau

Union Coop, a consumer cooperative in the UAE, revealed that 78% of 

Continue Reading

August 24, 2021 | By Jibran Chouguley

Union Coop has opened its 23rd branch within the UAE in Jumeirah 

Continue Reading

August 2, 2021 | By Jibran Chouguley

Nando’s has revealed their revamped Sheikh Zayed Road outlet where newcomers and 

Continue Reading

July 8, 2021 | By Jibran Chouguley

Download Images RetailME Magazine