Breakfast, QSR Pizza Soften Restaurant Traffic Declines

CHICAGOImproved performance in the morning meal daypart and quick service restaurants (QSR), led by the pizza category, helped to soften restaurant traffic declines in first quarter 2010, according to a new foodservice market report from The NPD Group.

According to the report, restaurant traffic declined by -2 percent in the quarter, and consumer spending slipped just below year ago levels. Consistent with the easing of commercial restaurant traffic declines, NPDs SalesTrac Weekly, which measures same store sales trends for 47 of the largest quick service restaurant and family-style chains, reported an increase in same store sales for March and April 2010, following declines over year-ago for the prior nine months.

The morning meal day part at commercial restaurants was one of the bright spots in the quarter with traffic flat compared to a year ago. Traffic at supper, which has been slipping since 2006, declined by -4 percent and visits at lunch were down by -2 percent.

There are signs of improvement but the industry isnt out of the woods yet, and wont be until the economy stabilizes, the unemployment picture improves, and consumer confidence maintains positive momentum, said Bonnie Riggs, NPDs restaurant industry analyst. Our foodservice forecast suggests there will be two more quarters of traffic weakness before the industry recovers traffic losses.