News

Restaurant transactions down 8% amid COVID-19

March 23, 2020

With the coronavirus pandemic spreading throughout the country, more people working from home and social distancing guidance in place, U.S. restaurant customer transactions declined by 8% in the week ending March 15 compared to year ago, according to The NPD Group.

In the prior week ending March 8, the QSR "breakfast wars" helped to drive a 4% increase in total U.S. restaurant customer transactions compared to the same period year ago, according to NPD's CREST Performance Alerts, which provides a rapid weekly view of chain-specific transactions and share trends for 70 quick service, fast casual, midscale and casual dining chains. 

QSR chain customer transactions, which represent the bulk of U.S. restaurant transactions, declined by 7% in the week. The already challenged full-service segments of casual dining and midscale/family dining realized transaction declines of -22% and -24% respectively.

The U.S. restaurant industry situation remains very fluid and the most recent week read of customer transactions reflect performance before mandated on-premise restaurant closures were implemented in multiple states, David Portalatin, NPD food industry advisor and author of Eating Patterns in America said in a press release. "Some of the areas I'll be watching closely in the coming weeks are delivery capacity, the pizza category, and third-party delivery platforms, like DoorDash, Grubhub, and Uber Eats."

In an effort to make up some of those sales, a coalition of restaurants including Panera Bread, Noodles & Company, Veggie Grill, El Torito, Jason's Deli, The Habit Burger Grill, Lemonade, Modern Market and Chevys Fresh Mex is asking Americans to participate Tuesday in The Great American Takeout.

"During The Great American Takeout, people are encouraged to order at least one delivery or pick-up meal to show support for the struggling restaurant community," Sarah Grover, a marketing exec helping to spread the word, said in an interview with FastCasual.

Read more about the coronavirus effect on the restaurant industry.