Rising Prices Contribute to U.S. Restaurant Traffic Decline
If you've dined out at a restaurant lately, you've likely noticed a big swing in the cost of your bill. Food inflation and rising costs have increased the price of a foodservice meal over the past few years, up 9% in April compared to April 2019, contributing to a 4% decline in consumer visits to U.S. restaurants this April compared to a year ago, reports The NPD Group.
In April, restaurant traffic was 11% below the pre-pandemic level in April 2019. NPD Group says the 1% increase in consumer spending at restaurants in April versus a year ago was more a reflection of higher prices than increased use of restaurants.
Through NPD’s daily tracking of the U.S. foodservice industry, it has also discovered that online and physical visits to quick service restaurants declined by 4% in April compared to a year ago and is 6% below the April 2019 pre-pandemic baseline. Traffic to full service restaurants, which had the steepest declines during the pandemic, was down 3% in April compared to a year ago, which is 31% below April 2019 visits.
What's Causing the Drop?
“Rising prices put pressures on consumers that contribute to the restaurant industry slowdown. For many consumers, it’s more affordable to eat at home,” David Portalatin, NPD food industry advisor and author of Eating Patterns in America, says in a release. “This is when operators need to demonstrate their value to consumers struggling with inflation and be solutions-oriented to help consumers meet needs across life stages.”
Rising restaurant prices have had the greatest affect on lower-income households and households with kids. For consumers in households with annual incomes under $50K, their restaurant visits declined by 11% in April 2022 compared to the same month a year ago.
Traffic from households with kids under age 6 was down 8% and decreased by 9% for households with kids ages 6 to 12 in April compared to a year ago, NPD Group reports. Visits from groups with kids, from the same home or not, were down 14% from a year ago, while traffic from adult-only groups was up 1% this April compared to April 2021.
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