It is no secret that retail has taken one of the hardest hits by the economy’s shutdown, surpassed only by hospitality. A closer look at the restaurant industry, in particular, reveals this sector is doing what they can but are hanging by a thread. COVID-19 is causing a ‘survival of the fittest’ effect in our restaurant community, restaurants are making changes to stay afloat, and we are finally seeing a shift to favor tenants here in Houston.

In today’s environment, it is not a matter of making profits for most restaurants; it is merely a matter of minimizing losses. New data from Yelp shows that just over 50% of U.S. restaurants that closed during COVID-19 are now permanently closed. As we make our way through Q3, we see more restaurants shutter here in Houston as PPP loans dry up. Both one-off concepts, as well as larger restaurant groups, are disappearing, proving the more prominent players are not immune to COVID-19’s impact. Pappa’s, Houstonbased family of restaurants, announced the closure of 5 long-time locations throughout Houston.

Regarding QSRs, we foresee that COVID-19 will... Click here to read the full report.