Restaurant Dinner Traffic Rebounds

CHICAGOVisits to restaurants for dinner increased 2% and 1% in the third and fourth quarters of 2010, respectively, and increased 2 percent in the first quarter of 2011, according to new market data from The NPD Group. The findings signal a boost for the foodservice sector that experienced several years of traffic declines.

Quick service restaurants, which represent 78% of total industry traffic, drove the growth at supper, while visits at midscale and casual dining remained weak.

In addition to the traffic growth at supper, after eight consecutive quarters of traffic decline, customer counts at commercial restaurants started to improve in the third and fourth quarters of 2010 over the same quarters a year ago, and ended the first quarter of 2011 flat. Weekend visits recovered across all dayparts and families with kids have been returning to restaurant over the last six months. Visits to quick service restaurants were up 1% compared to a year ago.

The improvement may reflect some easing in unemployment, a modest improvement in consumer confidence as well as a release of pent up demand during the periods reported," said Bonnie Riggs, NPD restaurant industry analyst. I also believe that rising food costs in-home have narrowed the gap between the price of food at-home and a restaurant meal."