---
title: "17 per cent of U.S. restaurants closed either permanently or for the long-term"
url: https://burnaze.com/article/3484fc60-e665-4a13-9416-27f17c7be508
source: "Global Franchise"
original_url: https://www.global-franchise.com/news/17-per-cent-of-u-s-restaurants-closed-either-permanently-or-for-the-long-term
author: "Kieran M"
category: "Restaurants"
industry: "Restaurants"
published: 2020-12-07T15:20:00.000Z
modified: 2026-10-31T16:48:24.502Z
image: https://images.unsplash.com/photo-1561758033-d89a9ad46330?w=1600&q=80&auto=format&fit=crop
---

# 17 per cent of U.S. restaurants closed either permanently or for the long-term

**TL;DR:** The National Restaurant Association's latest figures show that 17% of U.S. restaurants have closed either permanently or for the long-term, with 87% of operators reporting a 36% drop in sales. The association is urging Congress to pass a relief package to support the struggling industry.

*By Kieran M, originally published in Global Franchise on 2020-12-07. [Read the original](https://www.global-franchise.com/news/17-per-cent-of-u-s-restaurants-closed-either-permanently-or-for-the-long-term).*

## Key facts

- 17% of U.S. restaurants are closed
- 87% of operators reported a 36% drop in sales
- 110,000 locations are closed permanently or long-term

## Story

**The National Restaurant Association’s latest figures highlight the ongoing difficulties of the pandemic.**

The National Restaurant Association (NRA) has sent a letter to Congressional leadership, highlighting some key findings about the current state of the U.S. restaurant industry. The aim of this letter is to encourage a substantial relief package to be rolled out in early 2021.

“What these findings make clear is that more than 500,000 restaurants of every business type – franchise, chain, and independent – are in an economic free fall,” said Sean Kennedy, executive vice president for Public Affairs in the letter. “And for every month that passes without a solution from Congress, thousands more restaurants will close their doors for good.”

## Sales and revenue

A survey conducted by the NRA’s Research Group of 6,000 restaurant operators found that 87 per cent reported an average drop of 36 per cent in sales, with 83 per cent of full-service operators expecting sales to be even worse over the next three months as we enter 2021.

Furthermore, just over half of chain and independent operators expect continued furloughs and layoffs for at least three months.

“In short, the restaurant industry simply cannot wait for relief any longer,” said Kennedy. “We appreciate the efforts of a group of moderate members of the House and Senate to advance a true compromise between the competing proposals from Democratic and Republican leaders.”

## Permanent closures

As of today, the NRA found that 17 per cent of restaurants, which equates to roughly 110,000 locations, are closed permanently or for the long-term. Of that that are permanently closed, 16 per cent had been pillars of their community and had been open for at least 30 years.

As a result of the current state of the industry, only 48 per cent of these former restaurant owners have said that it is likely they will remain in the restaurant business in any form for the months or years ahead, which could result in a talent shortage in the years to come.

## Entities

- Restaurants (sector)
- Global Franchise (publication)
- Kieran M (person)
- pandemic impact (topic)
- Congress (regulator)
- restaurant closures (topic)
- Sean Kennedy (person)
- sales drop (topic)
- relief package (topic)

---
Originally reported by Kieran M, Global Franchise (https://www.global-franchise.com/news/17-per-cent-of-u-s-restaurants-closed-either-permanently-or-for-the-long-term). Summarized by Burnaze (https://burnaze.com/article/3484fc60-e665-4a13-9416-27f17c7be508).