Maryland Restaurant Industry News Brief: December 8, 2020

12/8/20

Maryland Restaurant Profit Margins Down 91% According to the National Restaurant Association; Give the Gift of Dining this Holiday Season as Restaurants Fight to Remain Open

The National Restaurant Association recently shared new survey findings that illustrate the continued impact on the restaurant industry nationwide, as well as by state. According to data provided to the Restaurant Association of Maryland (RAM), the local restaurant industry appears to be fairing worse than the national average in all areas of research. Result findings are based on a survey of 6,000 restaurant operators and 250 supply chain businesses Nov. 17-30, 2020.

Restaurant Business Conditions in Maryland

  • 89% of Maryland operators expect their sales to decrease from current levels during the next 3 months (65% - National avg.).
  • 89% of Maryland restaurant operators say their total dollar sales volume in October was lower than it was in October 2019 (79% - National avg.). Overall, sales were down 37% on average. (29% - National avg.)
  • 70% percent of Maryland operators say their restaurant’s total labor costs (as a percent of sales) are higher than they were prior to the COVID-19 outbreak (59% - National avg.). Only 14% of operators say their labor costs are lower, as a percent of sales (21% - National avg.)
  • 91% of Maryland operators say their restaurant’s profit margin is lower than it was prior to the COVID-19 outbreak (86% - National avg.)
  • 45% of Maryland operators say it is unlikely their restaurant will still be in business six months from now, if there are no additional relief packages from the federal government (37% - National avg.)


Restaurant Jobs in Maryland

  • 84% percent of Maryland operators say their current staffing level is lower than what it would normally be in the absence of COVID-19. 56% of restaurants are currently more than 20% below normal staffing levels.
  • 67% of Maryland operators expect their staffing levels to decline during the next 3 months (49% - National avg.). Only 2% of operators expect their staffing levels will rise during the next 3 months.


“The results from National Restaurant Association Research Group are staggering, but sadly they are not shocking, as we continue to see Maryland restaurants fight to stay alive,” said Marshall Weston Jr., RAM President & CEO. “The time is now to support your local restaurants. Every day is critical to their survival. While the holidays look very different for everyone this year, consider giving the gift of dining to friends and family. Our industry continues to be committed to providing safe dining experiences and we will do what is necessary ensure that restaurants remain open while safely serving customers.”

Right now, Maryland restaurants are operating at limited 25-50% indoor dining capacity. While some establishments are able to get creative with expanded outdoor seating, the winter months are here and not every restaurant has outdoor dining available as an option to serve. As restaurants continue to struggle to keep their doors open, RAM is encouraging Marylanders to support their local establishments by giving the Gift of Dining this holiday season.

  • Purchase RAM Gift Certificates – Redeemable at over 350 restaurants across the state, 100% of all RAM gift certificates go directly to the restaurant where it is redeemed. For every $100 gift certificate purchased, customers will be entered to win a $500 RAM gift certificate. Order gift certificates online or call (410) 290-6800.
  • Dine-In Reservations – Avoid the stress and mess, and instead plan a small group dining experience. Restaurants take the health and safety of their employees and customers very seriously and they are doing their part to provide a safe dining experience for all.
  • Order Holiday Meals in Advance – If dining out is not yet of comfort, consider carryout or delivery options. Similar to Thanksgiving, restaurants across the state have a number of carryout and prepared meal options that accommodate small, at-home gatherings. Order ahead to ensure a safe, stress-free holiday and New Year celebration for all.


Since the start of the pandemic, Maryland’s restaurant and foodservice industry has lost approximately $1.4 billion in sales and has seen as many as 150,000 restaurant employees laid off or furloughed. RAM still projects that approximately 40 percent of all of Maryland restaurants (roughly 4,000 establishments) may close permanently under mandated restrictions.

About Restaurant Association of Maryland (RAM)

The Restaurant Association of Maryland (RAM) exists to promote, protect and improve Maryland's foodservice and hospitality industry. RAM leads by showcasing restaurants, offering programs that reduce operating costs and advocating for the interests of foodservice businesses. RAM for all foodservice and hospitality businesses including restaurants, caterers, bars & taverns, food trucks, grocery stores, hotels and other businesses that serve food. Visit www.marylandrestaurants.com for more information.