Restaurant sales decline but owners remain optimistic

The performance of restaurants and similar establishments was less satisfactory in July than in June, according to information from the Statistics and Census Bureau (DSEC).

Some thirty-nine percent of the establishments that DSEC interviewed reported year-on-year growth in revenue, down 8 percentage points from the previous month.

On the other hand, one-third of the interviewed establishments recorded a year-on-year decline in revenue, up by 8 percentage points from June.

Those interviewed expected no significant change in their businesses in August, with more than half saying they expected revenue to remain stable year- on-year. Around one-quarter of the interviewed establishments predicted a year-on-year rise in revenue, up by 1 percentage point from July.

Meanwhile, 24 percent of the interviewed establishments anticipated a year-on-year decline in revenue, an increase of around 1 percentage point from July.

The data comes from DSEC’s monthly Business Climate Survey on Restaurants & Similar Establishments and Retail Trade, which also interviews businesses in the retail sector.

In July, 63 percent of the interviewed retailers reported year-on-year sales increase, down by 4 percentage points from June, while 27 percent registered a year-on-year sales decline, up by 9 percentage points from June.

On the whole, retailers were more optimistic about their prospects in August, with 39 percent anticipating a year-on-year sales increase, up by 5 percentage points from July. 19 percent of the retailers expected a year-on-year decline in sales, down by 4 percentage points from July.

The sample of the Business Climate Survey was selected based on the revenue of the establishments. It comprised 167 restaurants and similar establishments, accounting for 53 percent of the industry’s revenue, and 135 retailers accounting for 70 percent of the industry’s revenue respectively.