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The restaurant industry has lost 110,000 restaurants, according to the National Restaurant Association. And, based on a Cowen analysis of the past three recessions, 90% of closures have occurred among independent operators who were ill-prepared for a prolonged pandemic that required full-service establishments to depend on off-premise sales to survive.
But it hasn t been bad news for all of the industry.
The purging of restaurants is expected to leave $39 billion in sales up for grabs, according to Cowen. That s created an opportunity for well-financed multi-unit operators and private-equity backed restaurant companies to strike.
These big restaurant players are seizing a moment in a crisis to increase market share by buying solid brands found flatfooted during the pandemic.
With sale, Legal Sea Foodsâ quirky advertising could be coming to a close
From âfresh fishâ that badmouthed commuters to âPescatarianism,â a New York agency created a long line of memorable campaigns
By Jon Chesto Globe Staff,Updated December 23, 2020, 3:52 p.m.
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Legal Seafoods CEO Roger Berkowitz often appeared in commercials created by the New York ad agency DeVito/Verdi.Lane Turner
As Roger Berkowitz hands over the keys to the kitchens at Legal Sea Foods to a new restaurant group, itâs not just decades of family ownership that are coming to an end.
The era of those quirky Legal Sea Foods ads might be over, as well.
You either panicked or you pivoted, said Stibel, founder and CEO of New England Consulting Group.
And going into 2021, those two paths still apply as thousands of restaurants hang by a thread with COVID-19 cases escalating across the US.
The end-of-year winter surge is prompting tighter restrictions for restaurants who are forced to, once again, rely heavily on delivery, carryout, and drive-thru orders to survive. And an estimated 110,000 restaurants have not survived, according to the National Restaurant Association.
Insider interviewed several industry experts to get their take on what lies ahead for 2021. Most said next year s playbook looks like an accelerated version of 2020. Operators will leverage technology to meet the needs of convenience-hungry consumers. Temporary menu slashes will become permanent. More consolidation is expected as private equity firms and multi-unit operators look to scale operations and grab market share.