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Foodservice Recovery to Continue Amid Rising COVID-19 Cases

The recent surge in Covid-19 cases in the US and the subsequent expansion of dine-in restrictions in many states and cities appear troubling. While they may weigh on consumer behavior for a short period, Rabobank expects US foodservice recovery to continue as initial hotspots (e.g. New York) show no resurgence, and more importantly, the consumer spending trajectory is largely unchanged in new hotspots (e.g. Florida, Texas, California), likely signaling that the delayed onset in these areas has enabled both businesses and consumers to prepare for the ‘new’ normal.

Another Widespread Shutdown Is Unlikely

Though local and state governments have begun to reimpose restrictions in some hard hit areas, there is little appetite among governments, businesses, or consumers for another...

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