NEW YORK—Restaurant traffic declined by 22% in March compared to the same month a year ago, a new report shows.
However, the NPD Group, which conducted the study, said as a testament to U.S. consumers' desires for someone other than themselves to make their meals, digital restaurant orders increased by 63% and delivery by 67% in March.
Visits to quick-service restaurants (QSRs) — many of which already had off-premise operations, like carry-out and drive-through in place prior to the dine-in closures — decreased by 19%. QSRs represented the majority of the digital and delivery order gains. Drive-thru QSR visits declined by 3%, but family or larger party-sized visits drove dollars up by 2% and the average eater check increased by 5%, reported Mobile Payments Today in its analysis.
A Full-Service Challenge
Full-service restaurants, which were already challenged prior to the pandemic, saw traffic declines of 35% in the month of March compared to a year ago in March. On-premise traffic share prior the pandemic represented 80% of the FSR business and off-premise 20%. FSRs able to offer carry-out and delivery were able to lift the segment's off-premise traffic share by 31%. The FSR average check size increased by 15% in the month.
"Our March results only show a portion of the significant impact the COVID-19 pandemic has had on the U.S. restaurant industry," David Portalatin, NPD food industry adviser. "Although it's fact that a larger portion of food and beverage consumption has shifted to in-home, it's clear that consumers are not willing to give up on the convenience and experience a restaurant meal brings to them and their families, regardless of the barriers.”