NEW YORK – The latest NRN-MillerPulse survey reveals that restaurant industry same-store sales were positive in July, with the strength of QSRs overcoming declines at casual dining restaurants, the Nation’s Restaurant News reports.

Overall industry same-store sales increased 1.3% last month, with QSRs posting a 2.6% gain for the month. Meanwhile, full-service restaurants, which include casual dining and fine dining brands, dropped 0.3%, representing a widening of the gap between fast food and casual dining restaurants.

“The performance gap between fast food and casual dining was rather dramatic in July,” said Larry Miller, founder and chief executive of MillerPulse. “The gap was 4.6 percentage points, or twice that of the average gap over the past two years and the fourth widest gap over that period.”

In July, same-store sales at casual dining restaurants (CDR) dropped 1.6%, following a 0.1% decline in June. It was the 25th consecutive month that the segment underperformed the industry as a whole. Meanwhile, traffic at CDRs dropped 2.2% in July, while QSR sales and traffic rose 2.6% and 1.8%, respectively.

“The question is why,” Miller asked. “There was notable weakness in alcohol sales and the dinner daypart, which may suggest consumers are still spending frugally and fast food's improved total value offering is resonating better.”

Looking ahead, Miller said the outlook for restaurant are modest at best.

“Year to date, same-store sales are up 1.1% and up 4.5% on a two-year basis,” he said. “If this two-year trend holds, sales would be up a rather lackluster 1.6%, but would be stronger for the remaining five months of the year, up 2.3%.”