Market trends

Indoor dining slowly reopens around the U.S.

Kailey Raymond

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September 11, 2020


Open and Closed store signs.
Open and Closed store signs.

Six months after the pandemic shuttered dining rooms, counties across the United States have started reopening indoor dining, most at limited capacity. On Wednesday, Governor Cuomo announced that New York City’s restaurants can open their indoor dining rooms at 25% capacity at the end of September.

AS-Blog-Indoor-Dining -doc-trend

Mentions of “indoor dining” and related terms in company documents and news articles increased significantly in June.

During Q2 earnings, many restaurant groups acknowledged that suburban and rural areas carried their restaurants while COVID restrictions impacted major metropolitan areas. Executives noted that, as indoor dining options improve in the United States, so too will their bottom line. To dig deeper into executive commentary on indoor dining, login to AlphaSense or start a free trial.

 

Takeaways:

  • Sysco Corp noted that major metropolitan settings are underperforming versus more suburban or rural areas where restrictions have been eased. Manhattan, LA, San Francisco, Seattle, and Miami are the “toughest cities on restrictions, which directly impacts quarterly results.”
  • Since March, 85% of restaurant transactions is for food consumed off-premise, taken back home
  • Almost 50% of states currently allow indoor dining with capacity restrictions

 

How are states handling indoor dining?

AS-Blog-Indoor-Dining -Chart

U.S. States, Indoor dining mandates. Combined data sources: AlphaSense & AARP

Sysco Corp (Conference Transcript – 9/10)

“Our business in Manhattan right now is very soft in comparison to the other book of business we have essentially everywhere else. Major metropolitan, dense urban settings are underperforming versus more rural areas or places where restrictions have been more sufficiently eased. So Manhattan, L.A., San Francisco, Seattle, Miami, those are actually the toughest cities from a restriction perspective, and we can directly see that in our results.

On the flip of the coin, Europe, without a doubt, was a headwindEurope entered the crisis earlier than…the United States. And they came out of the crisis from a restrictions perspective after we did in the United States. And that had a very significant impact on our business.”


McCormick & Co Inc (Conference Transcript – 9/8)

“Consumers are increasing at-home consumption with restaurant carryout and delivery. So on top of not dining outlets, recent data says that 85% of restaurant transactions is actually for food consumed off-premise, taken back home.”

State Restaurants Status Notes
Alabama Dine-in allowed with social restrictions “Safer at Home” order until Oct 2nd. Restaurants, bars, and breweries can offer limited dine-in services
Alaska Dine-in allowed All businesses can reopen at 100% capacity
Arizona Dine-in allowed with capacity restrictions Restaurants, gyms, movie theaters, theme parks can open at 50% capacity
Arkansas Dine-in allowed with capacity restrictions Phase 2 of reopening, restaurants can open at 66% capacity
California Dependent on county Each county falls into four color-coded tiers, depending on the % of positive cases. Once a county is out of the purple (most severe) tier, indoor dining can resume at 25% capacity
Colorado Dine-in allowed with capacity restrictions 50% capacity or 50 people (whichever is fewer); bars must stop serving alcohol at 11pm
Connecticut Dine-in allowed with capacity restrictions 50% capacity
Delaware Dine-in allowed with capacity restrictions Restaurants and most other businesses can reopen at 60% capacity.
Florida Dine-in allowed with capacity restrictions Indoor service allowed at 50% capacity.
Georgia Dine-in allowed Restaurants must adhere to sanitation and social distancing guidelines
Hawaii Outdoor dining allowed In the “Act with Care” phase of reopening – businesses can resume operations with restrictions. Restaurants should focus on outdoor dining.
Idaho Dependent on county In Stage 4 of Idaho’s reopening plan – migrating to a regional plan moving forward
Illinois Dine-in allowed with capacity restrictions 25% capacity, tables must be 6 feet apart, heavy sanitation required between parties
Indiana Dine-in allowed with capacity restrictions 75% capacity, required safety plan for social distancing and sanitation
Iowa Dine-in allowed with social restrictions Required customer limit, all parties must be 6 feet apart
Kansas Dependent on county Statewide plan offers guidance, but counties aren’t required to follow it
Kentucky Dine-in allowed with capacity restrictions Bars and restaurants can reopen at 50% capacity, all parties must be 6 feet apart
Louisiana Dine-in allowed with capacity restrictions 50% capacity; bars must remain closed for on-premises food and drink but can remain open for pickup & delivery
Maine Outdoor dining allowed Bars, restaurants, and tasting rooms can offer outdoor dining, but indoor dining has been postponed
Maryland Dine-in allowed with capacity restrictions 50% capacity, no buffet style allowed
Massachusetts Dine-in allowed with social restrictions Tables must be 6 feet apart
Michigan Outdoor dining allowed Businesses must refuse service to those not wearing a mask
Minnesota Dine-in allowed with social restrictions Reservations required to dine-in at any restaurant
Mississippi Dine-in allowed with social restrictions Bars can serve alcohol only to seated patrons and only until 11pm.
Missouri Dine-in allowed Full reopening on June 16th – all statewide restrictions lifted
Montana Dine-in allowed with capacity restrictions 75% capacity
Nebraska Dine-in allowed with capacity restrictions 75% capacity
Nevada Dine-in allowed with social restrictions Must comply with social distancing and sanitation guidelines
New Hampshire Dine-in allowed with social restrictions Restaurants can resume indoor and outdoor services, but tables should be spaced  feet apart, among other guidelines
New Jersey Dine-in allowed with capacity restrictions 25% capacity mandate, tables must be 6 feet apart, sanitation requirements must be adhered to
New Mexico Dine-in allowed with capacity restrictions 25% capacity. Outdoor service can continue at full capacity if safety precautions are followed
New York Dine-in allowed with capacity restrictions Phase 4: restaurants can resume dine-in service at 50% capacity, except in New York City, where outdoor dining, pickup, and delivery are preferred. Restaurants can open for dine-in  at 25% capacity at the end of September
North Carolina Dine-in allowed with capacity restrictions 75% capacity; no alcohol after 11pm
North Dakota Dine-in allowed with capacity restrictions 75% capacity
Ohio Dine-in allowed with social restrictions Bars and restaurants cannot service  alcohol after 10pm; strict sanitation requirements
Oklahoma Dine-in allowed with social restrictions Sanitation and social distancing encouraged
Oregon Dine-in allowed with social restrictions Tables must be 6 feet apart, strict sanitation requirements
Pennsylvania Dine-in allowed with capacity restrictions 25% capacity
Rhode Island Dine-in allowed with capacity restrictions 66% capacity
South Carolina Dine-in allowed with capacity restrictions 50% capacity, tables must be spaced at least 6 feet apart, guests cannot congregate in a bar area
South Dakota Dine-in allowed “Back to Normal” plan in effect; sanitation and social distancing encouraged
Tennessee Dine-in allowed with social restrictions Tables recommended to be 6 feet apart, limit parties to 10 people, sanitation and social distancing encouraged
Texas Dine-in allowed with capacity restrictions Restaurants, which were previously allowed to offer dine-in at 75% capacity must scale back to 50%
Utah Dine-in allowed with social restrictions Tables must be 6 feet apart; buffets may open, but staff must hand plates to patrons directly
Vermont Dine-in allowed with capacity restrictions 50% capacity
Virgina Dine-in allowed with capacity restrictions 50% capacity; Restaurants, breweries cannot sell alcohol after 10pm
Washington Dependent on county Phase 1: 25% capacity (indoor); 50% capacity (outdoor)

Phase 2: 50% capacity (indoor); full capacity (outdoor)

Phase 3: 50% capacity (indoor)

Masks required, social distancing required

West Virginia Dine-in allowed with social restrictions Indoor service allowed with sanitation restrictions
Wisconsin Dine-in allowed Patrons must wear a mask
Wyoming Dine-in allowed with social restrictions Indoor service allowed with sanitation restrictions

 

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Kailey Raymond

A customer-obsessed and data-driven marketer, Kailey Raymond leads Customer Marketing at AlphaSense. Previously, she was an early employee at two high-growth tech startups, in charge of launching new markets and building local communities.


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