Most adults in states that allow alcohol beverages with takeout and delivery orders would like to see it continued on a permanent basis.
That’s the conclusion of a survey incorporated in the National Restaurant Association‘s midyear report. The study calls alcohol-to-go a “key lifeline” during he pandemic. Operators who sold alcohol-to-go (ATG) were able to augment off-premises sales. Most states were quick to allow beer, wine and even liquor to go, but off-premise
mixed cocktails were a mixed bag legislatively, the study notes.
At the high point, 39 states allowed cocktails-to-go in some way. Fourteen have extended how long they’ll be permitted (decision is pending in several states), and 17 jurisdictions (16 states and D.C.) have made cocktails-to-go permanent.
Other key findingsfrom the NRA report:
- Food and beverage sales in the restaurant and foodservice industry are projected to total $789 billion in 2021, up 19.7% from 2020.
- Despite a steady trend of job creation in the first half of the year, eating and drinking places are still nearly 1 million jobs, or 8%, below pre-pandemic employment levels and the restaurants and accommodations sector have one of the highest levels of unfilled job openings of any industry.
- As of June 2021, 39 states and the District of Columbia had reopened to 100% indoor dining capacity; 11 states and Puerto Rico are open at varying capacities ranging from 50% to 80%.
- Six in 10 adults have changed their restaurant use due to the rise in the delta variant.
July marked the seventh consecutive month of staffing growth, translating to a net increase of 1.3 million jobs in the first half of 2021. Despite these increases, eating and drinking places remain nearly 1 million jobs or 8% below pre-pandemic employment levels. Operators also continue to grapple with higher input costs, with wholesale food prices increasing at their fastest rate in seven years.
- 75% of restaurant operators reported that recruiting employees was their top challenge as of June 2021 – the highest level ever recorded.
- The fullservice segment was down 626,000 jobs, or 11% below pre-pandemic employment levels; the limited-service segment was down 175,000 jobs or 4% in the same period.
- Menu prices have increased nearly 4% through June 2021.
Technology, Outdoor Dining, and Alcohol To-Go Are Here to Stay
The pandemic catalyzed many changes in the restaurant industry including the rapid consumer adoption of technology for online ordering, electronic payment, and order pickup. Consumers want to see restaurants continue incorporating technology and are keen to continue using outdoor dining. In 31 jurisdictions, thanks to approved legislation, consumers will be able to continue ordering alcoholic beverages with their takeout.
- 52% of adults would like to see restaurants incorporate more technology to make ordering and payment easier.
- 84% of adults say they favor allowing restaurants to set up tables on sidewalks, parking lots or streets permanently.
- A majority of adults in states that allow alcoholic beverages with takeout and delivery orders would like to see it continue on a permanent basis.
The Threat of Delta
A National Restaurant Association survey, conducted Aug. 13-15, found that the delta variant of COVID-19 threatens to reverse the gains made in the first six months of the year.
- 6 in 10 adults changed their restaurant use due to the rise in the delta variant.
- 19% of adults said they completely stopped going out to restaurants.
- 37% of adults said they ordered delivery or takeout instead of dining in a restaurant.
- 32% of adults said that if asked to wear a mask and/or show proof of vaccination to dine indoors again, they would be less likely to dine in a restaurant.
“The trends from the first half of the year are promising, but a lot of uncertainty remains in regard to the delta variant, consumer confidence, and ongoing labor challenges,” said Hudson Riehle, Senior Vice President of Research for the National Restaurant Association. “We expect restaurant pent-up demand will remain high in the coming months. However, in this state of flux, maintaining the availability of on-site dining with few capacity restrictions will be critical to keeping the overall sales momentum going forward, especially for fullservice operators.”
