Foodservice traffic dips despite growth in spending

A rise in average eater cheques was the reason for the growth.

Foot traffic in foodservice dipped by 0.9% in the first quarter of 2024 despite foodservice spending growing 3.8% compared to last year, a study by Circana revealed.

The report said that growth in foodservice spending was solely driven by an increase in average eater cheque of 4.7%, revealing that cost-of-living concerns linger for most Australians.

Within the foodservice industry, the categories with the steepest traffic declines were QSR cafés, FSR pubs/hotels, and FSR casinos/hotels.

Circana’s report identified that deals drive the most consumer traffic. Compared to last year, deal occasions grew 13.4% in spend and 5.8% in traffic. The largest QSR and retail outlets drove deal-based traffic growth. Meanwhile, on-premises and morning meals fueled deal occasion growth.

ALSO READ: 5 challenges QSRs faced when implementing loyalty programmes

Amongst all dayparts, the morning meal saw the fastest growth in spend and traffic whilst chips/French fries, chicken wrap, and hash browns were the top-growing food and beverage items.