Families pull back from foodservice spend as economic pressures bite
Foodservice spending may have increased but only because of high prices.
The family cohort declined 5.9% in spend and traffic amidst economic pressures, a report by Circana revealed.
The drop in traffic was driven by declines across multiple segments, primarily carry-out, dinner, and weekdays.
Overall, foodservice spend grew 2.4% compared to the same period last year, fueled solely by the 2.9% cheque growth, as traffic declined 0.4% in Q2 2024. This was a trend observed in the first quarter of the year.
Interestingly, retail has outperformed QSRs and FSRs, registering a traffic growth of 1.1% in Q2. The growth of retail was fueled by weekends, p.m. snacks, and solo dining.
As consumers continue to look for better value when dining out, deal occasions grew 20.3% in spend and 10.5% in traffic. The largest QSR chain-based outlets drove deal-based traffic growth, highlighting their focus on value.
On-premises, pickup, weekdays, and morning meal fueled deal occasion growth.
