1851

An effort to track the COVID-19’s toll on restaurants has picked up a clear trend favoring large-scale chain and franchise operations as independent shops close down in far greater numbers.The studies, carried out by New Jersey-based Kalinowski Equity Research, and BTIG Research, were first <a href="https://www.nrn.com/operations/covid-related-restaurant-closures-mount-perhaps-less-dire-forecast?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-wave-of-covid-19-restaurant-closures-has-a-silver-lining-for-franchise-brands-2714349" target="_blank" rel="nofollow">reported on by Nation’s Restaurant News</a> and validate the conventional wisdom that the franchise industry is more resilient to economic downturns.&nbsp;“Definitely, independents have been hit harder by everything that has gone on this year,” Mark Kalinowski, founder of Kalinowski Equity Research, told NRN. “By definition, they are very small businesses, so they lack the resources of a larger corporation.”Kalinowski estimated that the top 38 restaurant concepts by sales would close around 4,500 units, but that those would be the weakest units in the system. For independents, Kalinowski estimated that figure ranged from between 11,160 and 54,196.But at BTIG, researchers found some positives for even small restaurant concepts.&nbsp;“We believe that restaurants, both chain and independents, can achieve roughly breakeven profit and cash flow with about 75% of pre-COVID sales volumes,” he said in a report seen by NRN. “After falling (55%) in April, same-store sales as measured by Black Box [Intelligence] have improved every month since and were down only (8.1%) in September and (7.5%) in October.”While the outlook may be “less dire” than previously thought, according to BTIG, the restaurant industry has still been battered by the persistent pandemic.&nbsp;<a href="https://www.nrn.com/operations/covid-related-restaurant-closures-mount-perhaps-less-dire-forecast?utm_source=1851franchise.com&utm_medium=article&utm_campaign=the-wave-of-covid-19-restaurant-closures-has-a-silver-lining-for-franchise-brands-2714349" target="_blank" rel="nofollow">Read the full report at nrn.com.</a>

The Wave of COVID-19 Restaurant Closures Has A Silver Lining for Franchise Brands

1851 Franchise

The COVID-19 pandemic has decimated the restaurant industry, but a new analysis shows larger chains and franchises weathering the storm while independents fall off. 

the-wave-of-covid-19-restaurant-closures-has-a-silver-lining-for-franchise-brands

TruBlue Home Service Ally

Why TruBlue is the Ideal Franchise for Multi-Unit Owners: Scalable Growth With a Purpose

why-trublue-is-the-ideal-franchise-for-multi-unit-owners-scalable-growth-with-a-purpose

Onigilly Japanese Kitchen

Koji Kanematsu Turned a 2,000-Year-Old Japanese Staple Into One of the Most Scalable Restaurant Franchise Models

koji-kanematsu-turned-a-2000-year-old-japanese-staple-into-one-of-the-most-scalable-restaurant-franchise-models

Lindora

Celebrating the Nurse Behind the Mission: How Melinda Endricks Is Powering Lindora’s Growth and Impact Nationwide

celebrating-the-nurse-behind-the-mission-how-melinda-endricks-is-powering-lindoras-growth-and-impact-nationwide

Sola Salons

Sola Salons Targets Chicago for Strategic Franchise Growth

sola-salons-targets-chicago-for-strategic-franchise-growth

Melting Pot

Photo of Melting Pot white chocolate fondue

How Melting Pot Franchisees Drive Year-Round Success Through Strategic Promotions and Local Marketing

melting-pot-franchise-year-round-success

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

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands - 1851 Franchise

DoorDash Expansion Could Reshape Delivery and Operations for Franchise Brands

doordash-acquistions-deliveroo-sevenrooms

Crumbl Franchise Investment - TSG Consumer Partners -  1851 Franchise

TSG Consumer Partners Takes Minority Stake in Crumbl, Signaling Franchise Growth Potential

crumbl-franchise-investment-tsg-consumer

Yum Brands Reports Strong Q1 Results with Big Boost from Taco Bell

yum-brands-reports-strong-q1-results-with-big-boost-from-taco-bell

QSR: McDonald’s Gains Momentum With Chicken Innovation, Value Deals and Franchisee Support

mcdonalds-franchise-recovery-chicken-strategy-value-deals-2025

The Future of Franchising: Trends and Predictions for 2025 and Beyond

the-future-of-franchising-trends-and-predictions-for-2025-and-beyond

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

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

Restaurant Business: Crumbl Cools Its Expansion, Refocuses on Profitability

restaurant-business-crumbl-cools-its-expansion-refocuses-on-profitability

Franchisee spotlight image with Randy and Sandy Craft, Children's Lighthouse logo on blue background

The Crafts’ Successful Journey from New Parents to Children’s Lighthouse Franchisees

the-crafts-successful-journey-from-new-parents-to-childrens-lighthouse-franchisees

Franchisee spotlight image with photo of Robert Trujillo and UWRG logo on blue background

How Robert Trujillo Expanded His Construction Business With UWRG

how-robert-trujillo-expanded-his-construction-business-with-uwrg

District Taco Franchise Costs, Fees, Profit and Data for 2025

franchise-deep-dive-district-tacos-franchise-costs-fees-profit-and-data

The Ultimate Guide to Selling Franchises: Building Your Brand’s Growth Machine

ultimate-guide-to-selling-franchises

The Wave of COVID-19 Restaurant Closures Has A Silver Lining for Franchise Brands

MORE STORIES LIKE THIS