Report: How California restaurants, bars, supermarkets and other businesses are being impacted by COVID-19

In this article:

  • How are sales at local restaurants, bars, lodging places, retail shops, and supermarkets across California faring amid the COVID-19 outbreak?
  • We drill down and look at revenue for the same business types in the bay area and in Los Angeles, as well.

On January 25th, the CDC announced its confirmed case of the novel coronavirus (COVID-19) in the state of California. The case was only the third in the entire country, making California one of the first major epicenters of what has now become a global pandemic. 

The Womply Research team has been analyzing revenue trends at millions of small, local businesses across the country. We’re trying to size up the COVID-19 crisis’ impact on local businesses like restaurants, retail shops, lodging places, salons, entertainment venues, and more.

California has been under a state of emergency since March 4th, and cities around the state have been implementing serious restrictions to stem the spread of the virus. This report examines exactly *how big* the impact is for California businesses. 

About this report: The charts below automatically update every day. They show a daily view of average 2020 revenue for California businesses in a particular category compared to the closest day of the week in 2019. 

Check back regularly to see how the local business economy in California is faring. 

California restaurants have been hurt by COVID-19 since early March

As you can see, restaurants began to suffer a slowdown in sales right around the time California declared a state of emergency on March 4th.

CA restaurant sales, YTD


This chart includes only data from restaurants that are still open and transacting. Each day represents a comparison of average daily revenue at open restaurants vs. a comparable day in 2019.

Sales took a particularly steep drop during the second week of the month, as confirmed cases in California began to grow, and major events like the suspension of the NBA season hit the news.

By the weekend of March 21-22, after several California counties had enacted shelter in place orders, restaurant revenue had dropped to a 75% decrease statewide.

Bay area restaurants, as you can imagine, have been hit especially hard.

Bay area restaurant sales, YTD

This chart includes only data from restaurants that are still open and transacting. Each day represents a comparison of average daily revenue at open restaurants vs. a comparable day in 2019.

Restaurants in and around San Francisco, Oakland, and San Jose started the month pulling 8% less revenue than in 2019. By the weekend of March 13th, sales had plummeted to nearly 40% less than the year before.

After bay area counties enacted a “shelter in place” ordinance on March 17th, revenue dropped to around 75% below 2019’s averages.

Now let’s take a look at Los Angeles area restaurants.

Los Angeles restaurant sales, YTD

This chart includes only data from restaurants that are still open and transacting. Each day represents a comparison of average daily revenue at open restaurants vs. a comparable day in 2019.

LA restaurants actually saw sales hovering around 2019’s numbers through the first week of March. Then, on March 10th, sales began a precipitous drop that hit 77% below 2019’s figures shortly after the Los Angeles area issued their own shelter in place order.

California hotels and motels have been in a free-fall since March 4th

The travel industry in California is massive, and COVID-19 stands to wreak havoc on local hotels and motels across the state. 

CA lodging sales, YTD

This chart includes only data from lodging places that are still open and transacting. Each day represents a comparison of average daily revenue at open lodging places vs. a comparable day in 2019.

Here, you can see a dramatic free fall in sales at lodging places statewide starting around the time declaration of a state of emergency in California on March 4th. Since then, businesses plummeted all the way to a 99% drop by March 24th.

The softening travel and tourism market has been especially brutal to bay area hotels and motels.

Bay area lodging sales, YTD

This chart includes only data from lodging places that are still open and transacting. Each day represents a comparison of average daily revenue at open lodging places vs. a comparable day in 2019.

Revenue has been consistently low for bay area hotels and motels since mid-January, and have only gotten worse from there. Sales at lodging places started the month of March 18% behind 2019’s averages during the same time, and quickly dropped to a 106% decrease by the week of March 16th. (A +100% drop in revenue is due to a combination of low sales + hotels and motels issuing refunds on deposits and/or reservations).

Los Angeles area hotels and motels, on the other hand, were doing pretty well until March.

Los Angeles area lodging sales, YTD

This chart includes only data from lodging places that are still open and transacting. Each day represents a comparison of average daily revenue at open lodging places vs. a comparable day in 2019.

As late as March 4th, hotels and motels in LA were doing 12% better than in 2019. Then, in the wake of announcements of major attractions in the LA area closing up (Disneyland chief among them), sales fell off a cliff.

Supermarkets are a bright spot

Of course, in times of crisis some businesses are decimated while others are overrun. Supermarkets and grocery stores in California have seen consistent year-over-year gains in 2020 as people stock up against potential long-term isolation scenarios. 

CA state grocery sales, YTD

This chart includes only data from grocery stores that are still open and transacting. Each day represents a comparison of average daily revenue at open grocery stores vs. a comparable day in 2019.

Bay area grocery stores, meanwhile, experienced a far more dramatic story:

Bay area grocery sales, YTD

This chart includes only data from grocery stores that are still open and transacting. Each day represents a comparison of average daily revenue at open grocery stores vs. a comparable day in 2019.

On Monday, March 16th, bay area counties announced their “shelter in place” ordinance, set to begin on midnight March 17th. The result of that announcement was a jaw dropping 405% increase in sales at bay area grocery stores as locals cleared the shelves to prepare for three weeks indoors.

Los Angeles area grocery stores have also seen big increases in sales, but not nearly to the same extent as those around the bay area.

This chart includes only data from grocery stores that are still open and transacting. Each day represents a comparison of average daily revenue at open grocery stores vs. a comparable day in 2019.

You see a huge spike here on Monday, March 16th, after the bay area announced their shelter in place order, and then again on the 19th, once Los Angeles issued their own.

Just the beginning for turbulent times in the Golden State

California is the most populous state in the U.S., and home to the tech and entertainment capitols of the country. As COVID-19 spreads, small businesses across California, and in its major metropolitan areas in particular, are likely to continue to struggle. Especially as the state continues to “shelter in place” in order to combat the spread of the virus.

We will update the data in this post on a daily basis and add analysis as the story changes. In the meantime, we’re rooting for local businesses in California and across the country to weather the storm. 

Let Womply help you apply for your PPP loans!

As you know, it’s free to apply for a PPP loan, and we know you have lots of choices. So why should you let Womply connect you with an approved SBA lender? Because we know what we’re doing and people love the help we provide. We’ve helped over 200,000 businesses, contractors, sole proprietors, and self-employed individuals get approved. Don’t wait! The application deadline is May 31, 2021.

Start your PPP application now!

Learn more, plus get free reputation monitoring and customer insights when you sign up for Womply Free!

Blog

The PPP is out of money (again): what can I do? 2021

In this 2-minute read: The SBA announced that the Paycheck Protection Program ran out of money for most borrowers on […]

Read More

9 ways to maximize PPP loan forgiveness (important 2021 tips)

In this 7-minute read: Ways to maximize and help you get your PPP loan forgiveness Over 10 million businesses, independent […]

Read More

Do PPP loans affect business taxes and deductions?

In this 6-minute read: Is the PPP loan taxable? What are the tax implications of a forgiven PPP loan? Will […]

Read More

Restaurant Revitalization Fund (RRF) basics, and can PPP borrowers apply?

In this 10-minute read: Restaurant Revitalization Fund (RRF) introduction Who is eligible for RRF grants? How and when to apply […]

Read More

PPP tips for auto services businesses, dealers, detailers (2021 rules)

In this 7-minute read: Can service providers in the auto-related industries get the PPP loan? 2021 PPP updates that increase […]

Read More

PPP lender document checklist: Everything you need to get approved (Updates for 2021)

Once you apply for a PPP loan, you need to collect some documents. Here’s exactly what your lender will need to get you approved ASAP.

Read More

See why Womply is the #1 marketing and CRM solution used by 500,000+ businesses.

Please start typing, and then choose your business from the dropdown.

By submitting this form you agree to Womply’s Terms of Service and Privacy Policy.