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Are Customer Transactions at Restaurants Bottoming?

04/16/2020

The results of a recent NPD Food Industry Survey showed that total customer transactions at restaurants declined by 41 percent for the week ending April 5th compared to the corresponding week in 2019.  This value was almost the same as the 42 percent decline for the previous week.

 

There is a big difference between QSRs demonstrating a 38 percent decline and full-service restaurants down 79 percent.  It is apparent that QSRs are able to maintain at least half of their transactions through drive-through lanes and carry-out.  Full-service restaurants rely on carry-out and home delivery.

 

David Portalatin of NPD commented that the patronage of restaurants and even QSRs may decline as the restrictions on movement and job losses impact expenditure on food outside the home.  With escalating unemployment and furloughs, family budgets are tightening to the detriment of non-essential expenditure.