May 25, 2022

The NPD Group credited food inflation and rising costs of a meal in foodservice for the 4% decline in consumer visits to U.S. restaurants in April, compared to 2021.

NPD said that the price of a foodservice meal is up 9% when compared to April 2019 and traffic was down 11% when compared to the same month in 2019 before the pandemic.

Overall online and physical visits to quickservice restaurants (QSR) dropped by 4% and was 6% below the April 2019 pre-pandemic baseline. Traffic to full-service restaurants (FSRs), which had the steepest declines during the pandemic, was down 3% this April compared to a year ago, which is 31% below April 2019 visit, NPD shared in a press release.

“Rising prices put pressures on consumers that contribute to the restaurant industry slowdown. For many consumers, it’s more affordable to eat at home,” said David Portalatin, NPD food industry advisor and author of Eating Patterns in America. “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.” 

The NPD Group said increased prices in restaurants have had the most impact on lower-income households and households with kids. NPD noted that for consumers with an annual income of under $50K, restaurant visits were down 11% and traffic from households with kids under age 6 was down 8% and decreased by 9% for households with kids ages 6 to 12 in April compared to a year ago.

Visits from groups with kids, from the same home or not, were down 14% from a year ago, while traffic from adult-only groups was up 1% this April compared to April 2021, per NPD.

The latest findings from Acosta, a sales and marketing service provider for the consumer packaged goods (CPG) industry, showed that 54% of consumers are dining out less due to inflation, as SeafoodNews covered earlier this month.

The group also noted that one-third of respondents chose to trade down, rather than trade out. This means that consumers are deciding to opt for less expensive restaurant and meal options to counter rising prices.

"COVID-19 hit the foodservice industry hard," said Travis King, President of CORE Foodservice. "While recovery remains on track for 2024, consumers are feeling the pinch of inflation and reacting accordingly. To continue participating in dining out activities, many are sharpening their focus on costs."

Photo Credit: MaLija / Shutterstock.com

Ryan Doyle
Urner Barry
1-732-240-5330
rdoyle@urnerbarry.com