Visits to restaurants are increasing minimally quarter-after-quarter, resulting in an average lift in traffic of one percent annually, according to The NPD Group. The restaurant industry has been conducting business in a one-percent world since 2010 and will continue at the same pace for several more years, said NPD, based on their ongoing foodservice market research.
Total industry traffic was flat in the first quarter this year compared to last year; however, there are some pockets of stronger growth. Breakfast continues to fuel the industry’s visit growth. In the first quarter of this year, total industry morning meal visits increased by 2 percent compared to the same period last year and increased by 4 percent at quick service restaurants (QSR). Servings of breakfast foods increased by 8 percent, and breakfast sandwiches and other breakfast items topped the industry list of growing foods.
Restaurant visits, using a “deal” were also growing for the industry with deal traffic up 2 percent for the total industry and up 3 percent in the QSR category. Much of the increase in deal traffic was driven by combo meal “value wars” among the major QSR hamburger chains.
While consumers chose QSRs over all other segments to satisfy their away-from-home foodservice needs, of particular note was the flat traffic growth in the fast casual QSR category in the first quarter. This was a departure from the strong traffic growth fast casual chains had experienced over the last several years. Chipotle’s recent food safety issues contributed to the slowdown in the last two quarters. Taking Chipotle out of the equation finds fast casual visits up 5 percent
“There is a confluence of changing demographics, economic pressure, and evolving consumer attitudes and behavior creating shifts in what, where, when, and how we eat,” said Bonnie Riggs, NPD restaurant industry analyst. “The key for foodservice manufacturers and operators is to stay connected with their consumers and customers, understand their motivations and needs, and how they can offer them a unique value proposition,” Riggs said.
