Page 1 - GS201102

November 23, 2020 • Issue 20:11:02

Savvy adaptation, potential

stimulus brighten outlook

and drive-through rose 22 percent over the third quarter of
2019, while dine-in orders fell by 62 percent.

"While some of the steep transaction and traffic declines
experienced at the height of the mandated shelter-at-
home and dine-in closures have been recovered, many
uncertainties lie ahead," said David Portalatin, NPD food
industry advisor. "But what we do know for certain is
that consumers continue to rely on restaurants and other
foodservice outlets to prepare their meals, and there is
pent-up demand while we wait for a return to normalcy."

Stoking future spend
Recent and anticipated government actions could bode
well for future spending. The Coronavirus Aid, Relief and
Economic Security Act, passed in March 2020, put billions
of dollars into the wallets of consumers, with much of that
money "waterfalling" to merchants and payment processing
By Patti Murphy companies, said Francisco Alverez-Evangelista, Aite Group
research associate.
he COVID-19 pandemic has had profound
impact on the financial well being of individuals The Paycheck Protection Program, implemented under
and businesses. But there is no lack of opportu- that same legislation, doled out $525 billion in potentially
T nity for businesses that are quick to adapt. "It's a forgivable loans to 5.2 million small businesses. And in
good time to be in this business," said Bob Carr, CEO and October the Small Business Administration and Treasury
chairman of Beyond. Carr has a keen historical perspective Department implemented a streamlined forgiveness
on merchant acquiring. He's spent about 30 years running process that could wipe out repayments on 3.5 million of
ISOs, including Heartland Payment Systems, which he
founded and later sold to Global Payments for $4.5 billion.

While overall transaction numbers are down, they are Contributed articles inside by:
beginning to trend upward, especially in hard-hit sectors
like restaurants, Carr said. After seeing business drop by
as much as 40 percent in April, restaurants in Beyond's Adam Niec ...............................................................................................15
portfolio are now seeing about 10 percent year-over-year Martin Herlinghaus ..............................................................................16
growth, he noted.
Marc Beauchamp ..................................................................................24
The turnaround can be tied to digital and off-premise John Cragg ..............................................................................................26
orders. The market research firm NPD Group reported that
digital restaurant orders from mobile apps, text messaging Elaina Smith ............................................................................................28
and the internet grew by 138 percent during the three
months ending on Sept. 30, 2020, compared to the same TOC on page 3
period in 2019. Off-premise orders from carry-out, delivery
Continued on page 22