Restaurants Brace For Post-Pandemic Pent-up Demand

As pandemic lockdown restrictions loosen up across the country, restaurant CEOs are betting that Americans have discovered home cooking is overrated.

According to a new report from Restaurant Business Online, consumers are more than ready for someone else to make their dinner and they’re betting that pent-up demand — along with vaccine rollouts and easing dining restrictions — will bring diners back to their tables this spring.

“As vaccinations are being rolled out nationwide, we are preparing our teams for a post-pandemic operating environment, including staffing and training, and are confident we have the foundation in place to create and grow long-term value for our shareholders, when we can truly capitalize on pent-up demand for a Red Robin occasion,” Red Robin CEO Paul Murphy said in a recent 2020 Q4 earnings call earlier this month.

Most of the pent-up demand is for full-service casual dining, Restaurant Business reported.

1851 Franchise previously reported that the vaccine rollout could lead to a shift in consumer habits as Americans return to restaurants for date nights, gatherings and other social celebrations.

While White House Chief Medical Advisor Anthony Fauci continues to urge caution and avoid indoor dining, warning about the risk of a possible fourth wave of infections, in its recent 2021 State of the Restaurant Industry Report, the National Restaurant Association predicted a 10.7% rise in sales in 2021 for full-service establishments.

"Restaurants are the cornerstone of our communities, and our research shows a clear consumer desire to enjoy restaurants on-premises more than they have been able to during the pandemic,” said NRA Senior Vice President Hudson Riehle in the report. “We've also found that even as the vaccine becomes more available and more social occasions return to restaurants, consumers will continue to desire expanded off-premises options going forward. Both will continue to be key for industry growth. With more than half of adults saying that restaurants are an essential part of their lifestyle, we are confident that, with time, the industry is positioned for successful recovery."