Restaurants See Families Return

CHICAGO – Families with children are returning to restaurants after a long recess, says a consumer research group. Visits by customers accompanied by children increased one percent for June, July and August of this year compared to a year ago. 

Parties that include children who visited restaurants in 2009 accounted for $70 billion in sales. That breaks down to roughly 14 billion meals and snacks. And that was a depressed year.

Bonnie Riggs, an NPD restaurant industry analyst, observes that families with children have slowly come back this summer after a flat spring and a long fast. Since she began watching industry trends in 1976, she has never seen a drop of this magnitude in consumer activity.  

“Although the increase in visits reflects just one quarter, the return of parties with kids is another sign that business is beginning to pick up for the restaurant industry,” says Ms. Riggs. “Parties with kids are integral to the industry and make a significant contribution in both volume and sales.”

Steve Ellerhorst, president of the Independent Association of Franchisees and Dealers, which focuses on operational solutions for its members, says, “For the last 30 years, the industry thought recession was good for QSR’s. The reason was that QSR food was generally less expensive and more cost effective for families.”

But QSR’s have also taken a hit.

Denny’s franchisees have experienced marginal traffic increase. They attribute that to their "kids eat free" deals. But on the other hand, what’s contributed the most to their guest count and guest check averages is their “everyday value $2 - $4 - $6 - $8” marketing campaign, according to a source inside the Denny's franchise network. He adds, "Though franchisees are seeing growth in guest count, check averages are trending at a slower pace of recovery."

According to Ms. Riggs’ research, families are emerging from this recession pickier. “Parties with kids six and under are saying we will watch what we buy. We want the best value we can find,” observes Riggs. Restaurants can be more attractive to this group by reflecting that they understand their financial troubles. “These parties want to feel that the restaurants want them there,” she says. She adds that families with young children do not want to be relegated to a corner. They want to be treated politely.

Riggs says that the decline in business from families with children under six has been a strong indicator of  the impact of the economy. “Restaurants saw parties with kids under six hit the hardest,” she says.

Regarding the last quarter’s ever-so-slight improvement, Riggs concludes, “I think we are seeing the light at the end of the tunnel.”