Restaurants May See a Stronger Q4 Than Expected

Things may start looking up in the restaurant industry, according to Black Box Intelligence’s most recent monthly update.

The firm says restaurant performance in August showed signs of recovery with same-store sales growth improving by 2.0% in comparison to July numbers. In addition, same-store traffic growth accelerated by 1.1 percentage points month-to-month.

But it’s the early September data that leaves the firm most optimistic. “We are three weeks in and the month is showing a return to positive same-store sales growth. Additionally, same-store traffic growth is stronger compared to any other month since December,” it says.

Top performing segments in August were fine dining, fast casual and upscale casual. The worst performing segment was family dining.

Going forward, Black Box predicts a stronger Q4, with the latest data showing recovery may start earlier than expected, with positive same-store sales growth.