The first spring lockdown last year, which occurred in the Czech Republic due to the spread of covavirus, significantly affected restaurant sales. March and April were indeed the most crisis months for them. The number of transactions for lunch at that time decreased to about a fifth of the pre-Eve period, and people were not even willing to spend.
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According to the Ticket Restaurant Card Index, in March 2020 the average amount of payment for one lunch decreased by almost ten crowns compared to February to 120 crowns and 40 pennies.
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However, the fact that some restaurants offered discounted food from the windows in an effort to take advantage of raw material supplies may also have played a role in the decline in purchases in March.
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In the summer, the Czechs began to spend
“In April, the average payment exceeded 125 crowns, and in May, when there was an optimistic mood supported by gradual disintegration, we returned to spending as before the covid,” said Jakub Ryba from Edenred.
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The Czechs then significantly increased their lunch expenses, especially during the summer. In August, the national average of the Ticket Restaurand Card Index reached a historic peak of 136 crowns and 90 pennies for one lunch payment.
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“After months of denial, people probably wanted to indulge in quality food in restaurants and were willing to pay extra for them,” added Ryba.
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Even in the autumn, under another lockdown associated with the re-closing of restaurants, spending remained high. “Prices dragged up various boxes and packaging materials, as well as a slightly reduced offer. Restaurants began to decline and they needed to cover at least part of the operating costs, “said Ryba.
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Differences in spending in individual regions
The national average for lunch payments did not change dramatically in the autumn and at the end of the year, but analysts recorded significant changes in individual cities. While in Prague, but also in Brno, there was a slight decrease in spending in the autumn after summer records, in some smaller cities in the Czech Republic, on the other hand, spending on lunches rose quite significantly.
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“It simply came to our notice then. In Prague and Brno, the largest number of restaurants operate with spending windows, and competition will also affect the price level. On the contrary, in smaller cities it is easier to find restaurants that now have higher prices than before, “Ryba mentioned.
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He added that during the analyzes, experts came across one interesting phenomenon. “In some cities in the Czech Republic (mostly in Karlovy Vary), the number of transactions corresponding to payments for two meals has increased in connection with the covid. We perceive that when people are together in the workplace and cannot go to a restaurant, they have learned to take turns in orders and payments, which saves time. You don’t solve this in a restaurant, you pay similarly even if you work from home, “added Ryba.
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According to him, the fact that this trend did not appear to a greater extent until the autumn may be related to the fact that the number of restaurants that have their own delivery is increasing.
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However, in terms of total restaurant sales and profits, the real situation is actually worse than shown by meal card data.
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“While meal vouchers motivate users to come for lunch, restaurants lack sales in many other areas – they do not have tourists, they do not drink drinks on which they have higher margins than on food, they lack spontaneous sitting at business meetings or with friends. This explains why the decline we see is smaller compared to the situation in which restaurants really are, “added Ryba.
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