Source: www.pizzamarketplace.com, April 2020
U.S. restaurant customer transactions declined by 41% in the week ending April 5 compared to the same week one year ago. That followed a 42% decline in the prior week ending March 29, according to NPD Group.
The number may be an indicator of the industry bottoming out, NPD said in a news release. The apparent “bottom” is likely due to the full effect of on-premise dining closures throughout the country and the industry’s collective ability to convert to off-premise modes, like carry-out, delivery, and drive-thru, said David Portalatin, NPD food industry adviser and author of “Eating Patterns in America.”
“The 41% decline in restaurant transactions is similar to last week and may indicate a bottom, we also need to be aware that further erosion could occur if consumers’ economic situations worsen,” he said in the release. “To date, many consumers have continued to buy restaurant meals through delivery, takeout, and drive-thru to the degree allowed by the restrictive environment; but with rising unemployment, payroll reductions, and temporary furloughs, consumers may begin to think differently about their food budgets overall.”
Quick service restaurants, which historically have more off-premise business than full-service restaurants, experienced lower transaction declines (-38%) in the week than total industry, according to NPD’s CREST Performance Alerts, which provides a rapid weekly view of chain-specific transactions and share trends for 70 quick service, fast casual, mid-scale and casual dining chains. Full-service restaurants, which were already challenged prior to the COVID-19 outbreak, experienced transaction declines of 79% in the week ending April 5, compared to the same week year ago.
