Report: Restaurant Recovery Continues

The NPD Group finds that quick-service and family chains had their best performances in 11 months.

April 19, 2010

CHICAGO - The restaurant industry??s signs of revival persists, with more evidence coming in that it will soon make a full recovery, Marketing Daily reports. Same-store sales of nearly 50 quick-service and family chain registered increases in four of the previous six weeks versus the same periods in 2009. This is the best performances in 11 months, according to The NPD Group??s SalesTrac Weekly market research report.

Consumer dining patterns also look more upbeat, according to NPD??s "Light at the End of the Tunnel" report. In March, NPD discovered that 14 percent of respondents reported that they are not eating out because of saving money for "other things," contrasting with the 18 percent who said the same thing in June 2009.

Also, fewer respondents reported they were "choosing less expensive restaurants more often" because of the economy ?" 27 percent last month versus 32 percent in June 2009. In addition, 22 percent now say they are "looking for good deals [at restaurants] more often," compared with 29 percent saying the same thing in June 2009.

This research, coupled with other industry information, seems to indicate consumers have a more positive outlook about the economic recovery, which has begun moving the restaurant industry "in the right direction," said NPD restaurant industry analyst Bonnie Riggs.

However, NPD??s predictions still show that restaurants will have a weakened outlook for at least seven more months. "Once losses moderate, it will likely take more than a year to recover lost visits," said Riggs.

Advertisement
Advertisement
Advertisement