Typically, dairy sales are comprised of a 50-50 split between food service venues (restaurants) and retail outlets (grocery stores). Of course, that all changed because of the COVID-19 pandemic.
In recent months, food service sales were shattered like broken glass. Those sales have been simply lost.
The carnage has been far greater in America’s most dynamic metropolitan area — New York City. That city has had over 200,000 cases of COVID-19 . . . the most in the United States.
Up to 4% to 5% of all dairy sales?
If the retail sector does indeed account for half the dairy sales, then New York City could account for 4% to 5% of all dairy sales in the United States.
How could that be?
For an answer, let’s turn to the May 28, 2020, edition of The Wall Street Journal. In the front-page article “Can New York make another comeback?” jointly written by Jon Hilsenrath and Kate King, the reporters detail these statistics based on September 2019 data:
• 9% of all catering firms in the United States are in New York City
• 8% of all bars and restaurants in the United States are in New York City
Those food service establishments have the following cliental:
• 21% of all theater companies in the U.S. are in New York City
• 12% of all U.S. dance companies are in New York City
• 11% of all investment banking firms in the U.S. are in New York City
• 8% of all physicians’ offices and museums in the U.S. are in New York City
Given these statistics, Frank Sinatra’s song “New York, New York” has an especially impactful meaning for dairy sales. Indeed, “If I can make it there, I’ll make it anywhere. It’s up to you New York, New York.”
Yes, New York City is dairy’s biggest sales arena based on the statistics.
As The Wall Street Journal asked, “Can New York make another comeback?” For dairy’s sake, we sure hope so.