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U.S. consumers made approximately 61 billion visits to restaurants in the year ending May 2014, which is a stagnant number and remains below pre-Recession traffic levels by about 1.3 billion visits, according to new research from the NPD Group.
Spending conscious consumers kept visits to total U.S. restaurants and foodservice outlets flat in the year ending May 2014 compared to same period last year, and NPD’s long-range forecast shows little traffic growth (less than 1 percent annually) throughout the next several years.
The market research firm cites a number of reasons for such stagnancy, including:
"There are some fundamental shifts in how consumers, particularly low- and middle-income consumers, address their discretionary spending," NPD analyst Bonnie Riggs said in a news release. "Similar to the stalled growth other retail sectors are experiencing, restaurants are being negatively impacted by a large segment of the population who are watching their discretionary spending closely. Going to a restaurant is a nice-to-have and not a need-to-have."
There are pockets of bright spots in the industry, however. Visits at breakfast, the least expensive foodservice main meal, have been up for the last three years. Traffic based on a deal or discount was up 5 percent in the year ending May 2014 period compared to non-deal visits, which were down 2 percent. The fast casual segment, which consumers perceive to have enhanced service and higher quality food than traditional quick-service restaurants, continues to grow visits.
"The restaurant industry is not going to see the strong growth it did prior to the recession in the near future. Consumer attitudes and behaviors have changed and may have changed for good," Riggs said. "Margins are being squeezed and it’s a battle for share, but the fact remains that U.S. consumers still make billions of visits to restaurants each year. It’s a matter of staying in touch with the reasons why they visit and providing them the experience they want when they do eat out."
Topics: Trends / Statistics