Idaho grocery stores reap 50% sales boost as restaurants close

Published 8:45 am Friday, May 1, 2020

Idaho’s March 25-April 30 economic shutdown amid COVID-19 concerns saw a 50% jump in grocery store revenue at the same time 86% of restaurants laid off workers, Pam Eaton, a retail and hospitality lobbyist, said.

Half of all restaurants were closed temporarily without offering take-out service.

Businesses likely will keep some of the practices they adopted even after the state’s phased reopening starts, she told participants in a Leadership Idaho Agriculture weekly online meeting April 30.

Gov. Brad Little on the same day announced his March 25 stay-at-home order would be replaced by a phased reopening of the state’s economy starting May 1. Restaurant dining rooms can reopen in the second phase that would start May 16.

Eaton, CEO of the Idaho Retailers Association and executive director of the state Lodging & Restaurant Association, said restaurant operators “will need to think outside the box because people going forward will be more cautious about being in places where there are crowds, or where they are in close proximity with others.”

Already, restaurants have been trying to offer more family-style meals to suit the to-go segment and make most efficient use of supplies and staff, she said.

Some restaurants started selling grocery items as the shutdown progressed, and some food producers sold to consumers instead of restaurants, schools and other cafeterias. Both trends took some supply pressure off grocery stores and likely will continue as customer traffic warrants, Eaton said.

Take-out business at restaurants and deli sales at grocery stores increased as the shutdown progressed, she said. Grocery delis also picked up some of the business that would have gone to restaurants’ lunch trade had the economy been fully open.

Grocery stores “are starting to get caught up” in stocking or restocking many items, Eaton said. Meats and some other commodities have been redirected from restaurants to stores, under recently eased U.S. Food and Drug Administration guidelines.

“On reopening, our hope is there is less hoarding and less demand,” she said.

Demand at grocery stores figures to decrease — notwithstanding short-term increases as consumers receive higher Supplemental Nutrition Assistance Program and other government payments — as people return to work and buy more meals at restaurants, Eaton said.

Grocery stores have hired more workers to keep up with stocking and cleanliness demands, but one challenge is that some people do not want to work in a setting that can increase risk of coronavirus exposure, she said.

At Idaho hotels, motels and certain campgrounds, occupancy rates are projected to fall well below even post-9/11 levels for the full year, but gradually increase as the rest of 2020 unfolds.

“Hopefully Idaho citizens will feel safe, and start traveling around the state and vacationing around the state, and see all the beauty and activities Idaho has to offer,” Eaton said.

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