COVID-19 Restaurant Impact Survey – December 2021 Louisiana

Restaurant Business Conditions

• Although sales improved from the early months of the pandemic, business conditions remain challenging for many Louisiana restaurants. Overall, 57% of restaurant operators say their total sales volume in October 2021 was higher than it was in October 2020. Only 21% of operators reported a same-store sales decline between October 2020 and October 2021.
• However, when compared with October 2019 pre-pandemic levels, many Louisiana operators say their sales were lower in October 2021. 57% of operators say their sales volume in October 2021 was lower than it was in October 2019. Only 33% reported higher sales compared to October 2019.

• Business conditions deteriorated in recent months, according to many Louisiana operators. 42% of operators say their restaurant experienced a decline in customer demand for indoor on-premises dining during the last 3 months.
• Looking ahead to 2022, many restaurant operators do not expect a return to pre-pandemic sales levels. 34% of operators expect their 2022 sales volume will remain below 2019 levels. 21% of operators expect their 2022 sales volume will be above 2019 levels.
• Looking further down the road, 27% of operators think it will be 7-12 months before business conditions return to normal for their restaurant; 35% think it will be more than a year. An additional 16% of operators say business conditions will never return to normal for their restaurant.

Restaurant Jobs

• Although the industry added back many of the jobs lost during the pandemic, a majority of restaurants remain understaffed. 89% of Louisiana operators say their restaurant currently does not have enough employees to support its existing customer demand.
• Among restaurants that are currently understaffed, 78% of operators say their restaurant is more than 10% below necessary staffing levels. 34% say they are more than 20% below necessary staffing levels.

Costs Are Up – Profitability is Down

• Restaurants are being impacted by disruptions in the supply chain. 97% of operators say their restaurant experienced supply delays or shortages of key food or beverage items during the past 3 months.
• 91% of operators say their total food costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 3% say their food costs make up a smaller proportion of sales.
• 76% of operators say their total labor costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak. Only 12% of operators say their labor costs declined as a percent of sales.
• 42% of operators say their total occupancy costs are higher than they were prior to the COVID-19 outbreak. Only 3% say their total occupancy costs are lower.
• 79% of operators say their profit margin is lower than it was prior to the COVID-19 outbreak. Only 9% of operators say their profit margin is higher.
• Most operators do not expect their profitability to improve in 2022. Only 21% of operators think their restaurant will be more profitable in 2022 than it was in 2021. 39% expect to be less profitable in 2022.

Source: National Restaurant Association, national survey of 3,000 restaurant operators conducted November 16 – December 2, 2021