Survey: Rising prices contribute to U.S. restaurant industry’s decline in April

U.S. restaurants saw a 4 percent decline in consumer visits this April compared to a year ago, according to a new survey report from the NPD Group.  Restaurant traffic in April was 11 percent below the pre-pandemic level in April 2019. The 1 percent increase in consumer spending at restaurants in April versus a year […]

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U.S. restaurants saw a 4 percent decline in consumer visits this April compared to a year ago, according to a new survey report from the NPD Group. 

Restaurant traffic in April was 11 percent below the pre-pandemic level in April 2019. The 1 percent increase in consumer spending at restaurants in April versus a year ago was more a reflection of higher prices than increased use of restaurants, according to NPD’s daily tracking of the U.S. foodservice industry. Food inflation and rising costs increased the price of a food-service meal by 9 percent in April of this year compared to April 2019, NPD said.

Online and physical visits to quick-service restaurants declined by 4 percent in April compared to a year earlier and are 6 percent below the April 2019 pre-pandemic baseline. Traffic to full-service restaurants, which had the steepest declines during the pandemic, was down 3 percent this April compared to a year ago, which is 31 percent below April 2019 visits.

Rising restaurant prices have had the most impact on lower-income households and households with kids, the survey found. For consumers in households with annual incomes under $50,000, their restaurant visits declined by 11 percent in April 2022 compared to the same month a year ago. Traffic from households with kids under age 6 was down 8 percent and decreased by 9 percent for households with kids ages 6-12 in April versus a year before. Visits from groups with kids, from the same home or not, were down 14 percent from a year ago, while traffic from adult-only groups was up 1 percent this April compared to April 2021.

“Rising prices put pressures on consumers that contribute to the restaurant industry slowdown. For many consumers, it’s more affordable to eat at home,” David Portalatin, NPD food industry advisor and author of “Eating Patterns in America,” said in a release. “This is when operators need to demonstrate their value to consumers struggling with inflation and be solutions-oriented to help consumers meet needs across life stages.” 

NPD says it is a global market information company offering data, industry expertise, and prescriptive analytics to help clients understand today’s retail landscape and prepare for the future. It serves more than 2,000 companies worldwide. 

Jornal Staff: