Why Restaurant Brands Are Still Cutting Hours

Restaurant opening hours have declined 7.5% over the past three years. As of October 2022, the average restaurant is open for 6.4 fewer hours per week than it was in 2019, according to a new analysis from Datassential. 

There are several factors contributing to the decline:

• The worker shortage has disproportionately impacted the food service industry.
• Demand for restaurants in certain cities and neighborhoods has declined since the pandemic began. 
• The shift to work-from-home has led to reductions in both daytime and after-work traffic in key business centers. 
• People are at home more often, meaning more eating in. 

Notably, post-pandemic recovery has been tougher on independent restaurants than large franchises. Brands with over 500 units experienced a milder decline of 4.3%, or 4 hours a week. 

The report found that restaurants are closing earlier than ever, with many shutting their doors by 8 or 9 P.M., instead of the traditional 10 or 11 P.M. For example, just 41.5% of restaurants were found to be open at 9:45 on Wednesdays, compared to 56.6% in 2019. 

Other key findings from the report included: 

• 58.6% of U.S. restaurants reduced their operating hours since 2019, while just 19.8% have increased them
• Independent restaurants (-7.5 hours per week) and casual dining sit-down restaurants (-8.9) exhibited particularly steep declines
• Just one state saw a net increase in open restaurant hours — Alaska (+2.7 hours per week)
• Blue states exhibited the greatest declines, with Washington DC (-12.5 hours per week), Vermont (-11.3), Maine (-9.8), New York (-9.5), Connecticut (-9.2) and Minnesota (-9.2) topping the list
• Denny’s (-30.1 hours per week), Texas Roadhouse (-21.2), IHop (-17.7), Subway (-16.0), and Einstein Brothers (-14.2) are among the chains that reduced their hours the most.
• Meanwhile, Wendy’s (+21.2 hours per week), Crumbl Cookies (+3.8), Boston Market (+2.7), Jack in the Box (+2.4), and In-n-Out Burger (+2.2) are among a smaller handful of chains that extended their operating hours.

Read the full report from Datassential here.