When the stock market crashed in February 2020 due to the worldwide panic of coronavirus, it brought flashbacks of the impact that the 2008 Great Recession had on the restaurant industry. ArrowStream economists asked Maloni Report subscribers this week whether the restaurant industry is ready for a recession — are we?
“Some suggest no, not with rising menu prices and store saturation. During the Great Recession, the restaurant industry generally continued to grow, but certainly had periods of sales and traffic challenges. Since 2006, the average year-over-year sales gain has been 4.9 percent while store traffic gains have been higher by 2.1 percent. However, in 2008 and 2009, annual sales only grew by an average of .8 percent with traffic declining 3.2 percent.”