Rent delinquencies have dropped. / Photo: Shutterstock
Although more than a third of U.S. restaurants (38%) could not afford to pay their January rents, the delinquency rate marks a 14-point improvement from the level for December, according to the Alignable Research Center.
The findings indicate that the industry as a whole is continuing to rebound from the economic havoc of the pandemic. But other data compiled by Alignable, the research arm of the small business support website Alignable.com, suggest the recovery is uneven.
The researcher’s monthly canvass of more than 5,700 entrepreneurs revealed that minority-owned small businesses of all types, including restaurants, had a tougher time covering their rents last month. The delinquency rate for those ventures increased by six points, to 56%.
The rate for veteran-owned restaurants and other small businesses remained relatively unchanged at 26%, a three-point improvement.
Across all industries, 30% of small businesses could not cover their full rents, a drop of about 10 points.
The establishments with the highest default rate in January were beauty parlors. Restaurants had claimed that distinction in December, with 52% coming up short on rent.
The percentage of restaurants able to pay their rents was the highest it’s been since September 2022.
Alignable.com is an online referral network for small businesses. It began surveying its audience in March 2020 to get a more granular view of how the pandemic was affecting the field.
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