U.S. Restaurant Traffic Dips Again

The number of visits to U.S. restaurant declined again for the eight straight quarter with visits to restaurants declining by -1 percent in the quarter ending June 2010, an improvement over the -3 percent traffic loss in spring 2009. After four consecutive quarters of declines consumer spending at commercial foodservice this spring edged above a year ago spending, with a +1 percent increase.

NPD’s data, however, forecasts foodservice industry traffic to stabilize in the third quarter and begin to recover in the fourth quarter.

According to NPD, full-service restaurants experienced the weakest traffic, while visits to casual dining restaurants were down -2 percent and midscale restaurant traffic was down -3 percent. Quick service restaurants (QSR) experienced stable traffic in the second calendar quarter following five quarters of year-over-year declines.

Breakfast was the one area of traffic growth this spring with visits up +1 percent at total restaurants and +2 percent at QSR over a year ago, reflecting targeted marketing support by a few major QSR chains. Supper continued to post weak traffic trends, down -2 percent for the spring quarter across all restaurant segments. Lunch visits declined by -2 percent; with lunch visits at full-service restaurants especially weak.

“Although the traffic declines moderated this past spring, restaurant operators continued to battle for market share," said Bonnie Riggs, NPD’s restaurant industry analyst. “Throughout the recession, selected chains have been successful at increasing traffic by aggressively marketing new offers while also providing some low-priced options. One area that showed growth this past quarter came from the value menu, generally a very low price-point option for consumers