Analyst Says Don't Expect Restaurant Recovery Any Time Soon

CHICAGO (WBBM NEWSRADIO) -- Some states are allowing restaurants to reopen at reduced capacity.  But one industry analyst said don't expect a restaurant recovery any time soon.

Doug Roth, Founder and President of Playground Hospitality in Chicago, told the WBBM Noon Business Hour that a restaurant needs a lot of customers to make money.

"If you have a restaurant that has 200 seats, you base it at 75 percent of the restaurant's total seating and then take two and a half times.  That's the volume that you hope to be at," Roth said.

Some states are allowing restaurants to reopen at 50 percent capacity.  Roth said that's not enough.

"What's happening is that you're not getting the volume.  Unfortunately, because you're not getting that volume you're not going to make that nut," Roth added.

Some restaurants, he said, are uniquely positioned to survive the COVID-19 economic downturn.

"A larger chain, fast casual restaurants, and what we call QSRs, Quick Service Restaurants," Roth said.