Listenership rebound

[Kemosabe]

In his blog, Westwood One's Pierre Bouvard reports that national AQH audience levels have improved to 91 percent of March levels.

Further reading: Nielsen: AM/FM Radio Audiences Continue Steady Recovery Impacting Network Upfront Survey Selection

 

[Kelly A]

In his blog, Westwood One's Pierre Bouvard reports that national AQH audience levels have improved to 91 percent of March levels.

Further reading: Nielsen: AM/FM Radio Audiences Continue Steady Recovery Impacting Network Upfront Survey Selection

That's great and all, but the amount of advertising revenue hasn't improved. One can have great ratings but if no revenue is coming in the door, ratings are useless.

 

[TheBigA]

That's great and all, but the amount of advertising revenue hasn't improved.

There's going to be a delay of a few months or more. A lot of local restaurants still have rules prohibiting indoor dining. Lots of similar rules about other businesses.

 

[Kent]

There's going to be a delay of a few months or more. A lot of local restaurants still have rules prohibiting indoor dining. Lots of similar rules about other businesses.

Also, I wouldn't be surprised if a sizeable number of advertisers simply don't come back. I was reading this past weekend that, if this goes on much longer, 80% of independent restaurants could close permanently. Granted, independent restaurants tend to be lighter users of radio and, as a whole, are high risk clients, but I'd have to think an impact that large would be noticeable.

 

[TheBigA]

Also, I wouldn't be surprised if a sizeable number of advertisers simply don't come back.

A lot of local advertising might not reappear. But most of the national advertising hasn't gone away. Especially insurance companies, home improvement, fast food, and car care companies. If that happens, it will likely mean even more cuts at local stations.

 

[davideduardo]

Also, I wouldn't be surprised if a sizeable number of advertisers simply don't come back. I was reading this past weekend that, if this goes on much longer, 80% of independent restaurants could close permanently. Granted, independent restaurants tend to be lighter users of radio and, as a whole, are high risk clients, but I'd have to think an impact that large would be noticeable.

Many times I have refused restaurant deals other than trades unless the buy came from an agency.

I learned from experience that restaurants are demanding, slow-or-no-pay and not worth the time. The non-chain or franchise ones are not a revenue category of importance.

 

[davideduardo]

There's going to be a delay of a few months or more. A lot of local restaurants still have rules prohibiting indoor dining. Lots of similar rules about other businesses.

And outdoor dining is subject to high temperatures, rain, storms and the, in the fall and winter, cold.

Can you imagine sitting oudoors where I am when it is 122° out (which means the sidewalk is about 145°)?

 

[Kelly A]

Many times I have refused restaurant deals other than trades unless the buy came from an agency.

I learned from experience that restaurants are demanding, slow-or-no-pay and not worth the time. The non-chain or franchise ones are not a revenue category of importance.

Totally agree. Heard that guy who stars on that reality show Bar Rescue, Jon Taffer, being interviewed on NPR this morning. Jon was saying that between occupancy limitations due to distancing, and number of people willing to show up, he estimates 80% of the bars and restaurants won't survive another three months of being limited patronage, or closed up. Restaurant and bar margins are slim enough. He knew of none that would break even at only 50% capacity.

 

[boombox4]

Totally agree. Heard that guy who stars on that reality show Bar Rescue, Jon Taffer, being interviewed on NPR this morning. Jon was saying that between occupancy limitations due to distancing, and number of people willing to show up, he estimates 80% of the bars and restaurants won't survive another three months of being limited patronage, or closed up. Restaurant and bar margins are slim enough. He knew of none that would break even at only 50% capacity.

I heard on the radio that one problem with restaurants depending on take-out is that a lot of restaurants depend on after dinner drinks and the like to keep their profit margins up -- not something that can really be done via take-out, which is the standby that a lot of restaurants have had to deal with since corona hit. And extra bit of pain for their bottom line.

 

[TheBigA]

I heard on the radio that one problem with restaurants depending on take-out is that a lot of restaurants depend on after dinner drinks and the like to keep their profit margins up

Depends on the state liquor laws, but some restaurants are also delivering alcohol with their take-out meals.

 

[CTListener]

Totally agree. Heard that guy who stars on that reality show Bar Rescue, Jon Taffer, being interviewed on NPR this morning. Jon was saying that between occupancy limitations due to distancing, and number of people willing to show up, he estimates 80% of the bars and restaurants won't survive another three months of being limited patronage, or closed up. Restaurant and bar margins are slim enough. He knew of none that would break even at only 50% capacity.

I'm seeing that already here. High-end places, neighborhood pizza joints, diners, all crying "no mas" and getting out before the colder weather comes and business really gets bad. The food court in the mall was down to three tenants a few weeks ago.

 

[TheBigA]

The food court in the mall was down to three tenants a few weeks ago.

That came as a surprise to me too. I was in a rest stop on an interstate, and half of the food places were closed. These were chains too. Less travel, less customers at the rest stop.

 

[TheBigA]

Here's more from Nielsen's work at home study. Apparently 80% of those surveyed like working from home and want it to continue:

https://www.nielsen.com/us/en/insig...ime-at-home-work-days-and-media-habits-merge/

 

[davideduardo]

Depends on the state liquor laws, but some restaurants are also delivering alcohol with their take-out meals.

But I think that most of those orders are single servings or bottles of wine, not multiple servings.

I see many order an aperitif, wine with diner, and a cordial after dinner. Overall, their liquor charge is more than the meal charge. That is where the profit is for the higher end locations.

Take-outs also tend to have fewer 3-course meals, settling for the main dish and none of the very profitable add-ons.

Already, quite a number of local restaurants have filed for bankruptcy. Since that procedure takes time, I would imagine that the overall impact of this will not be felt for some time.

 

[davideduardo]

Here's more from Nielsen's work at home study. Apparently 80% of those surveyed like working from home and want it to continue:

https://www.nielsen.com/us/en/insig...ime-at-home-work-days-and-media-habits-merge/

Remember, that figure is only based on those able to work at home who have started doing it in the last 6 months.

Workers in industry, shipping, warehousing, retail, agriculture, health care and so many other professions can not telecommute. So this is a small segment relative to the whole economy.

 

[b-turner]

Some of the bars around here are selling food. In our state, an establishment that is 50% or more food for their income has a separate set of rules from the bar that makes all their money off selling drinks. Our state allows the bars to sell drinks as to go orders. I have to wonder if DWI/DUIs or PIs are increasing.