Pizza Today - November 2020 - 39

What sort of financial investment did
these measures require?
6%
4%
$7,500 $10K+
-$9,999

9%
$5K-7,499

58%
Less than
$2,500

23%
$2,5004,999

If you experienced a decrease in sales,
how long do you project that it will take
your restaurant(s) to recoup any losses
after the pandemic subsides?

The Financial Blow
Though pizzeria have fared far better
than the overall restaurant industry,
60 percent of pizzerias experienced a
decrease in sales. But, 50 percent of
those pizzerias that experienced sales
growth were up by 16 percent or more
over 2019 sales.
How much were your sales up during
this time period?

22%
16-20%

15%
11-15%
19%
6-10%

take six months to one year after the
pandemic subsides. Another 22 percent
project it will take over a year to recoup
losses. While 17 percent say they may
never fully recoup losses, another 26
percent say it is too early to predict how
long recovery will take.

33%
More than
20%

2% Flat
9% 1-5%

Though profit margins are typically
higher in DELCO models, 63 percent
of pizzerias experienced reduced profit
margins. Labor costs and price of goods
have increased since March. Thirtyseven percent of pizzerias increased
profit margins by six percent or more.
Unfortunately, with the uncertainly
of the COVID-19 pandemic,
recovery may take several months to
years. Pizzeria owners surveyed who
experienced declining sales offer a
varied view of how long it will take their
businesses to recover from negative
sales numbers during the pandemic.
While only roughly 12 percent said they
should recoup losses in less than six
months, 23 percent think recovery will

How critical was receiving the PPP
funding in terms of keeping your
business open?

35% Fairly
critical

32% Very
critical

24%
Somewhat
important

9%
Not very
important

17% May
never fully
recoup losses
22%
More than
a year
11%
10m 1 year

26% Too early
to predict

13%
6-9
Months

6%
1-2
Months

6%
3-5
Months

In response to COVID-19's impact
on businesses, the federal government
established the $669-billion Paycheck
Protection Program (PPP) as part
of the Coronavirus Aid, Relief and
Economic Security Act (CARES Act)
on March 27. The Paycheck Protection
Program is a loan designed to provide
a direct incentive for small businesses
to keep their workers on the payroll,
according to the Small Business
Administration (SBA). SBA will
forgive loans if all employee retention
criteria are met, and the funds are used
for eligible expenses. Over 70 percent
of pizzerias enrolled in PPP. Of those
who received PPP loans,
32 percent said PPP was very critical
and without it, the pizzerias would
have shuttered. Another 35 percent
found the PPP loans fairly critical and
helped their business stay afloat. Only
nine percent indicated that PPP was
not very important to the stability of
their restaurant.

Supply Chain Disruptions
While some were fortunate to not
experience disruptions in the supply
chain, 75 percent of operators said
their business had some disruption
in their supply chain. Eighty percent
of operators surveyed reported that
disruption(s) took two weeks or longer
to fill. Meats were the hardest hit
category and continue to have sporadic
issues with availability. Over 75 percent
of those surveyed experienced meat
shortages. Cleaning supplies and PPE
were also hard to acquire. Over
40 percent of operators found issues
with cheese availability and many were
forced to make cheese substitutions.
There were also supply chain issues
with pizza boxes, paper products, some
produce, yeast, among other. View the
complete list on page 40.
How long did supply
chain disruptions last?
14%
Still awaiting products

36%
2-3 weeks

30%
1+ month

7% Few
Days

14%
One week

N O V E M B E R 2 0 2 0 / P I Z Z AT O D AY. C O M / 3 9

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Pizza Today - November 2020

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