The Re-Start Phase Has Begun, Says Industry Report

According to market research firm The NPD Group,  as of this week more than 68% of all restaurant units are in states, counties, or municipalities where they are permitted to reopen their on-premise dining service.

The analysis does not mean all restaurants in those areas have reopened, but indicates the restrictions on opening are easing.

“With a growing number of restaurant dine-in services reopening, major restaurant chain customer transactions have been improving,” it reports.

In the week ending May 31, U.S. restaurant chain transactions declined by -18% compared to same period year ago, a +3% week-over-week improvement,  according to CREST® Performance Alerts, which provides a snapshot of chain-specific transactions and share trends for 72 quick service, fast casual, midscale, and casual dining chains. 

Restaurant industry performance varies geographically based on local policies for restaurants reopening and the severity of the COVID-19 outbreak. As expected, New York and California, where restaurants are still not permitted to open for on-premise dining, had the steepest customer transaction declines, -34% and -27%, respectively, in the week ending May 31 versus year ago. Restaurant transactions in Kentucky, where on-premise dining at limited capacity was allowed starting May 11, declined by -2%, reports NPD.

In week ending May 31, major full-service restaurant chains, which were hardest hit by the dine-in closures, realized a -37% decline in transactions compared to year ago, but a +15% increase from prior week. Quick service restaurant chain transactions, which represent the bulk of industry transactions, declined by -16% compared to year ago versus an -18% decline in week ending May 24.

“The U.S. foodservice industry today remains solidly in the re-start phase as restaurants begin to reopen their on-premise operations,” says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. 

=

- Advertisement -

- Advertisement -

- Advertisement -

TRENDING NOW

RELATED CONTENT

VNEXT Helps IFED Reach Record Numbers

Virtual conferencing platform helps distributor association connect with participants.

Read More...
Qdoba Exterior

Qdoba Welcomes New Franchise Development Chief

Peter Ortiz brings 30 years of experience to the role,.

Read More...
Wendy's announced the appointment of Kevin Vasconi as chief information officer, effective today. He will report to president and CEO Todd Penegor and serve on Wendy's senior leadership team. Prior to joining Wendy's, Vasconi served as executive vice president, chief information officer at Domino's Pizza, Inc. Emphasis on technology innovation helped Domino's achieve more than half of all global retail sales in 2019 from digital channels, primarily online ordering and mobile applications. In the U.S. in 2019, Domino's generated over 65% of sales via digital channels. At Wendy's, Kevin will assume responsibility for all aspects of Wendy's global technology efforts, including Consumer-facing Digital, restaurant technology, enterprise architecture and technology, and information security. "Digital technology is a critical growth driver for Wendy's today and will be in the future," said President and CEO Todd Penegor. "Kevin Vasconi is an ideal leader to join our organization and help us advance to the next level. We are confident that his industry-leading experience will help to accelerate the growth we have already seen across technology channels in 2020, and he will lead a talented and well-resourced team focused on the substantial opportunities we see across the globe." "It's incredibly exciting to join The Wendy's Company in this next chapter of my career," said Vasconi. "The great potential for technology transformation at Wendy's, combined with the brand's 50-year heritage for quality and innovation tell me that the future is bright at Wendy's

Former Domino’s CIO Joins Wendy’s

Burger chain says Vasconi will oversee restaurant technology, and consumer-facing digital tech.

Read More...