U.S. restaurant chain transactions continue a downward trend

After U.S. restaurant chain customer transaction declines stabilized in the week ending April 5 at -41% compared with the -42% drop the prior week, a further decrease in quick-service restaurant transactions brought total transactions down -43% in the week ending April 12 compared with a year ago, reports The NPD Group. Quick-service restaurant customer transactions declined by 41% in the week ending April 12, according to NPD’s CREST Performance Alerts.

“I’m hesitant to make a big deal out of this week-over-week decline because I think some volatility during a time of unprecedented disruption is expected,” says David Portalatin, NPD food industry advisor and author of Eating Patterns in America. “With 5 million additional unemployment claims this week, we may begin to see consumers hesitant to spend at restaurants. Also, while almost all U.S. restaurant dining rooms are closed, there is mounting evidence that some units are closing altogether. Although much of the business can be absorbed by other locations, especially chains, it’s reasonable to conclude that there is a point at which unit closures would erode volume further. On the other hand, we may see some lift from the government stimulus checks that have been issued.”

Full-service restaurant chain transaction declines have held at -79% for the last three weeks, reports NPD. Midscale/family dining restaurant transactions declined by -81% in the week ending April 12 compared with a year ago, which is the same decline as the two weeks prior. Customer transactions at casual dining restaurant chains were down -77% in the week—the same decline as the prior week.