NEW YORK, Oct. 6, 2020 /PRNewswire/ -- The pandemic, as well as the measures that were implemented to combat it, have damaged the economy across the board. Yet, the restaurant and dining market in particular was hit severely. Full-service and fast-food restaurants are the two largest segments of the commercial food service market and together add up to represent about 73.1% of all food-away-from-home sales in 2019. While full-service establishments have wait staff, in contrast, fast food restaurants use convenience as a selling point; they have no wait staff, menus tend to be limited, and dining amenities are relatively sparse. According to the National Restaurant Association, restaurants are the nation's second-largest private-sector employer, providing jobs for 1 in 10 Americans. Fast food chains are also the ones recovering faster from the consequences of the economic shutdown. Urban Tea, Inc. (NASDAQ: MYT), Darden Restaurants, Inc. (NYSE: DRI), The Wendy's Company (NASDAQ: WEN), McDonald's Corporation (NYSE: MCD), Yum! Brands, Inc. (NYSE: YUM)
According to a report by CNBC, using data from Bank of America credit and debit card holders, analysts calculated that on July 1st, the trailing seven-day average spend at large chain restaurants was down 4% compared with the year-ago period. At small restaurant chains and independents, spending fell 25%. "Small chains and independent eateries tend to be casual dining and fast-casual establishments, while large chain restaurants range from full service to fast food. The closure of dining rooms and the shift to social distancing has hit the casual dining and fast-casual segments harder," the data clarifies.
McDonald's Corporation (NYSE: MCD) announced earlier last month a global partnership with TerraCycle's circular packaging service, Loop, to test a new reusable cup model for hot beverages. The initiative, which will first be trialed in 2021 across select McDonald's restaurants in the UK, helps customers enjoy their favorite McDonald's hot drink in a reusable cup, while cutting down on packaging waste. The model marks significant progress toward innovative circular packaging solutions that help protect the planet for communities today, and in the future. "We're on a journey to rethink how we package products to give customers options that reduce waste, maintain the highest safety standards, and enhance the McDonald's experience they expect and enjoy. That's an innovation challenge, and it's one we think the Loop model has potential to help us solve," said Jenny McColloch, Vice President, Global Sustainability, McDonald's Corporation. "Our commitment to communities is one of our core values as a company, and this pilot will generate important local insights and lessons to share along the way. We're excited to assess how new reusable packaging models could work within our system as we accelerate circular packaging solutions with our partners around the globe."
