Up to 30% of restaurants could close – Grubhub CEO

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In an interview with MarketWatch, Grubhub (NYSE:GRUB) CEO Matt Maloney gave his perspective on the state of the restaurant industry. Here are some snippets:

“The problem the restaurant industry is facing is they don’t really get any relief. If they do close it’s likely they won’t reopen because it’s almost not worth it to retrain staff if they had to let them go.”

“The industry isn’t large enough for all restaurants to survive just on delivery, but they can survive for a matter of weeks potentially.”

“Demand from consumers is really a mixed bag. It’s not obvious how it will impact business in the long-term as the supply of restaurants are transitioning now and up to 30% of them could close because it’s too expensive to run.”

“We’ve received 10 to 15 times our usual new restaurant leads. This interest has led to four to five times more new restaurant go-lives compared to our previous record-breaking day. The delivery market for drivers is really good. I was concerned there would be a lot of attrition but I think drivers are looking to replace lost income.”

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Food delivery names: UBER, WTRH, APRN, POSTM, DOORD

Source: dailystockbuzz

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