Signals are emerging that the restaurant industry is poised for a turn toward recovery, according to The NPD Group, a market research company that continuously tracks consumer usage of foodservice outlets. NPD's SalesTrac Weekly restaurant market research report, which measures same-store sales trends for 47 QSR and family-style chains, shows same-store sales increases over year-ago in four of the past six weeks, a trend not seen in 11 months.
In addition to same store sales, NPD reports in its new study, "Light at the End of the Tunnel . . . What Can We Expect," consumer behavior patterns through past and current recessions, and how consumers' economic concerns indicate their restaurant visit patterns are shifting.
"It's clear from our research and other indicators that consumers are feeling more positive about the economy," NPD's restaurant industry analyst Bonnie Riggs said in a news release. "Our survey findings, combined with other publicly reported information on restaurants' improving status, suggest a move toward recovery may be starting soon, if it is not already underway."
Although there are positive indications the industry is improving, Riggs cautions that the industry isn't out of the woods yet, with total restaurant industry traffic still down -3 percent for the year ending February, a duration of 14 consecutive months of declines.
"Our forecasting model shows that the industry will remain weak for at least another seven months," Riggs said. "Additionally, once losses moderate, it will likely take more than a year to recover lost visits, but there are strong indications that the industry is now moving in the right direction."
NPD reported in late March that the global restaurant industry, especially the countries of Canada, Japan and Italy, also has shown signs of recovery.
