U.S. Restaurant Chain Customer Transaction Declines Continue to Ease in Week Ending May 24, Down 18% Compared to Year Ago

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Total U.S. restaurant chain transactions declined by -18% in the week ending May 24 compared to same week year ago, a +25 point gain from the steepest decline during the COVID-19 pandemic of -43% in week ending April 12, according to The NPD Group.

"Going forward we might expect a digital divide that sets apart restaurants with well- executed digital offerings and requires those without to turn to the newfound prowess of third-party platforms,” says David Portalatin, food industry advisor and author of Eating Patterns in America.

With nearly 320,000 restaurant units in the U.S.* now allowed to offer some level of on-premise dining, customer transaction declines at major restaurant chains continued to improve in the week ending May 24, reports The NPD Group. Total major restaurant chain transactions declined by -18% in the week compared to same week year ago, a +25 point gain from the steepest decline during the COVID-19 pandemic of -43% in week ending April 12, according to CREST® Performance Alerts, which provides a rapid weekly view of chain-specific transactions and share trends for 70 quick service, fast casual, midscale, and casual dining chains.

Major full service chain restaurant transactions declined by -42% versus same time year ago, a 7+ point improvement from the prior week’s decline of -49% from year ago. Transactions at quick service restaurant chains were down -17% in week ending May 24 compared to same week year ago, improving from the -20% decline in the prior week.

NPD’s CREST® foodservice market research, which daily tracks all aspects of how U.S. consumers use restaurants, shows that total industry traffic at chain and independent restaurants was down -35% in April compared to year ago, which aligns with NPD’s weekly restaurant chain transactions tracking. Drive-thru, primarily at quick service restaurants, accounted for almost half of all restaurant occasions (46%), while digital orders grew by 106% in April compared to year ago and now accounts for 20% of all restaurant occasions.

“Among the most interesting behaviors we’re seeing is the rapid escalation of using technology to engage with restaurants,” says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. “Going forward we might expect a digital divide that sets apart restaurants with well- executed digital offerings and requires those without to turn to the newfound prowess of third-party platforms.”

*Source: The NPD Group/ReCount® restaurant census

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About The NPD Group, Inc.
NPD offers data, industry expertise, and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar and e-commerce. We have offices in 27 cities worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, video games, and watches. For more information, visit npd.com. Follow us on Twitter: @npdgroup.

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