Restaurant Traffic Losses Ease at 2010 End
CHICAGO — The good news is that restaurant traffic increased in the second half of 2010. But that's still below were the industry was six years ago, according to the NPD Group. The market researcher says that traffic for all restaurant sectors collectively was flat for the quarter ending December 2010, compared to a -3 percent decline for same quarter year ago.
It is not just traffic that is coming back. Consumer spending is also on the uptick. Spending rose in the last three quarters of 2010, which yielded an increase in spending for 2010. The gain brings the industry nearly back to the dollar level registered in 2008. NPD continually tracks a wide range of commercial restaurants, lodging and vending as well as government schools and military institutions.
"We are beginning to see many encouraging signs, however, with unemployment still over 9 percent and consumer confidence low, consumers continue to scrutinize every purchase," says Bonnie Riggs, restaurant industry analyst at NPD.. "There's no question value and promotion will continue to factor heavily in their restaurant selections. It will take a lot of creativity to drive more traffic in the coming year."
