1851

The National Restaurant Association released a <a href="https://restaurant.org/articles/news/association-asks-congress-to-aid-restaurants?utm_source=1851franchise.com&utm_medium=article&utm_campaign=national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall-2714475" target="_blank" rel="nofollow">new survey</a> that spelled out the dire nature of the industry’s collapse since COVID-19 restrictions started closing down dining rooms in March.&nbsp;According to the survey, “approximately 17% of restaurants—more than 110,000 establishments—have completely closed,” and 10,000 of those restaurants closed within the last three months alone.“87% of fullservice restaurants (independent, chain, and franchise) report an average 36% drop in sales revenue,” the survey continued. “For an industry with an average profit margin of 5%-6%, this is simply unsustainable. 83% of fullservice operators expect sales to be even worse over the next three months.”The survey’s findings track with previous reports that 100,000 restaurants had closed. Certain sectors of the industry have proven resilient, like <a href="https://1851franchise.com/the-wave-of-covid-19-restaurant-closures-has-a-silver-lining-for-franchise-brands-2714349#editorials">franchises</a>, <a href="https://www.qsrmagazine.com/outside-insights/pizza-remains-pandemic-front-runner?utm_source=1851franchise.com&utm_medium=article&utm_campaign=national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall-2714475" target="_blank" rel="nofollow">pizza or drive-through heavy concepts</a>, but generally speaking the numbers do not bode well.&nbsp;In a <a href="https://restaurant.org/downloads/pdfs/advocacy/nat-l-restaurant-assoc-ltr-to-congress-12-7-2020.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall-2714475" target="_blank" rel="nofollow">letter sent to Congress</a>, which has <a href="https://1851franchise.com/biden-calls-for-grants-to-support-the-struggling-restaurant-industry-2714404#editorials">failed to follow up the CARES Act</a> with another round of stimulus, Sean Kennedy, the Association’s executive vice president of public affairs, laid out what the group calls “economic freefall.”“More than 500,000 restaurants of every business type—franchise, chain, and independent —are in an unprecedented economic decline, and for every day that passes without a solution from Congress, thousands more restaurants across the country will close their doors for good,” he wrote.&nbsp;<a href="https://restaurant.org/articles/news/association-asks-congress-to-aid-restaurants?utm_source=1851franchise.com&utm_medium=article&utm_campaign=national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall-2714475" target="_blank" rel="nofollow">Read the full survey here.</a>

National Restaurant Association Survey Finds 17% of All U.S. Restaurants Closed in ‘Economic Free Fall’

1851 Franchise

A new survey from the NRA says 110,000 restaurants across the country, or 17%, have closed since the start of the pandemic. 

national-restaurant-association-survey-finds-17-of-all-us-restaurants-closed-in-economic-free-fall

TruBlue Home Service Ally

NJBiz: Preventing Falls Crucial in Helping Older Adults Maintain Independence

njbiz-preventing-falls-crucial-in-helping-older-adults-maintain-independence

Griswold

How to Protect Seniors From Tax Day Scams This Year

protecting-seniors-from-tax-day-scams

Happy Joe’s Franchising

A Once-in-a-Lifetime Franchise Opportunity: Happy Joe’s Looks To Reignite Its Legacy in Iowa 

happy-joes-franchise-cedar-rapids-iowa-opportunity

Children's Lighthouse

Children’s Lighthouse Wraps Up Q1 With Two New Openings and Continued Industry Recognition

childrens-lighthouse-wraps-up-q1-with-two-new-openings-and-continued-industry-recognition

Why Texas Is the Perfect State To Open a Happy Joe’s Franchise

why-texas-is-the-perfect-state-to-open-a-happy-joes-franchise

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Layoffs Surge to Pandemic-Era Highs, Opening Doors for Franchise Growth

layoffs-surge-to-pandemic-era-highs-opening-doors-for-franchise-growth

FAT Brands Becomes First Restaurant Franchise To Accept Bitcoin for Royalty Payments

fat-brands-becomes-first-restaurant-franchise-to-accept-bitcoin-for-royalty-payments

Yum! Brands CEO David Gibbs To Retire in 2026 After 36 Years With the Company

yum-brands-ceo-david-gibbs-to-retire-in-2026-after-36-years-with-the-company

Hooters Bankruptcy - Chapter 11 - April 2025 - 1851 Franchise

Hooters Files for Bankruptcy, Sells Restaurants to Franchisee Group

hooters-bankruptcy-chapter-11-april-2025

Fly Dance Fitness Expands With First Franchise Location in Georgia

fly-dance-fitness-franchise-expansion

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025 - 1851 Franchise

Paris Baguette Ranks Among Top Franchises on Entrepreneur’s Franchise 500® for 2025

paris-baguette-ranks-among-top-franchises-on-entrepreneurs-franchise-500-for-2025

Design with hundred dollar bill and orange "recession" banner across the middle

ABC News: Recession Risks Are Rising, Economists Say. Here’s What to Know.

recession-risks-impact-economy-franchise-world

1851 Agg - McDonald's Sales Decline Expansion Continues - 1851 Franchise

McDonald’s Franchisees Feel the Pressure as Sales Decline and Expansion Continues

mcdonalds-franchisees-feel-the-pressure-as-sales-decline-and-expansion-continues

Florida Franchisee Reflects on Success and Growth with Sylvan Learning

florida-franchisee-reflects-on-success-and-growth-with-sylvan-learning

Franchise Deep Dive: Studio Pilates Franchise Costs, Fees, Profit and Data

franchise-deep-dive-studio-pilates-franchise-costs-fees-profit-and-data

Military Veteran and Craft Beer Enthusiast to Bring Voodoo Brewing Co. to Toledo, Ohio

military-veteran-and-craft-beer-enthusiast-to-bring-voodoo-brewing-co-to-toledo-ohio

Franchise Deep Dive: The UPS Store Franchise Costs, Fees, Profit, and Data

franchise-deep-dive-the-ups-store-franchise-costs-fees-profit-and-data

The Top Quick Service Restaurant Franchises for 2025

the-top-quick-service-restaurant-franchises

National Restaurant Association Survey Finds 17% of All U.S. Restaurants Closed in ‘Economic Free Fall’

MORE STORIES LIKE THIS