August 10

8/10 – While restaurant industry execs and business owners have mostly railed against the federal government’s extra $600/week in unemployment benefits, we have to consider what might happen to restaurant sales now that it’s gone. Last week the Labor Dept. said U.S. employers added 1.8M jobs in July, following a combined gain of 7.5M in May and June. The unemployment rate dropped from 14.7% in April to 10.2% in July. These are really great numbers. The problem is that we’re still 13M jobs short of February levels when unemployment clocked in at a 50-yr low of 3.5%. Additionally, those unemployed for 15-to-26 weeks rose to 6.5M people, the highest since 1948. With unemployment high, business re-openings slowing and the extra $600/week gone, consumer spending and the prospects for Q4 restaurant sales are likely very dependent on the next round of government aid.