Research: Restaurant traffic takes biggest dip in 28 years

Chicago Restaurant industry traffic fell 2.6% for the quarter ended May 31, the largest decline since 1981, according to Nation’s Restaurant News.

Research by The NPD Group, released Monday, found that consumers continue to cut spending and families with children reduce dining-out visits

The traffic decline is compared with an increase of 0.5% during the same quarter a year earlier.

The newest report blamed the restaurant traffic decline mostly on reduced visits among parties with children, which typically represents one-third of all industry traffic. NPD’s Consumer Reports on Eating Share Trends said that more than half of the industry’s decline in the May quarter could be traced to fewer dinner visits from parties with children at restaurants throughout all industry segments. Restaurant visits by adults in households without children remained stable in the May quarter, NPD said.

Rising unemployment also took its toll on consumer spending, the report showed.

“The commercial foodservice industry has been struggling since last fall, and it appears that as unemployment increases the struggle is increasing,” said Arnie Schwartz, president of U.S. foodservice for NPD.

According to the report, guest traffic was down 2% at quick-serve restaurants, 4% at casual dinnerhouses and 6% at family-dining operations.

The biggest decline was felt during the dinner daypart.

For the May-ended quarter, NPD said that restaurant industry check averages rose 2%, compared with the same quarter last year, suggesting that diners are willing to spend about the same on a restaurant meal as in the past, but are reducing the number of times they do it. The higher check average was unable to offset the steep decline in foot traffic, so total restaurant spending fell 1% across the industry, NPD said.