The phrase “what a year it has been” can apply to darn near everything in 2020, but in terms of industry sectors, it really applies to restaurants.
It’s amazing to think that many were closed for a good part of the year — a potential death knell for an industry with typically paper-thin margins and that is dependent on capacity. It has been the year of take-out, curbside pickup, home delivery, outside dining and generous tipping (which I hope was standard). We don’t know what the final tally will be of those restaurants that will not survive, and it’s sad to see this happen.
For publicly traded names, Paycheck Protection Program (PPP) loans, secondary equity offerings and new debt have kept many afloat, but even here it is too early to measure all the damage. The stocks of a basket of about three dozen restaurant names I follow are down