The high rate of unemployment across the U.S drove down overall restaurant traffic at the rate of minus 1% in the third calendar quarter of 2010, but one leading market research company is now forecasting good news that traffic will grow by 1% in the final quarter of 2010 and first quarter of 2011.
According to the NDP Group, visits to quick service restaurants, which represent the largest traffic share in the industry, were up by 1% in the third quarter. Casual dining visits were down 2% and traffic to midscale restaurants was off by 3%. Some of the areas most affected by the recession seem to have stopped declining and there are positive signs that the industry is beginning to return to normal, but high unemployment and the loss of benefits for the long-term unemployed mean a full recovery will remain elusive.
Young adults between the ages of 18 to 34 have historically been the most frequent restaurant customers and are also the group with the highest unemployment numbers in the nation. Per capita restaurant visits for young adults dropped from 236 to 215 since late 2008, while visits for adults aged 25 to 34, declined from 256 to 235 visits. Consumers over age 50 appeared to maintain their normal restaurant usage numbers.
Despite the weakened economy, U.S. consumers still made 67 billion visits to restaurants last year. In the coming year, the surviving establishments will be those with the most innovative offerings that draw consumers out of their homes and away from their competitors.
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