Operations

Bad February weather proves stormy for restaurant transaction activity

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March 11, 2021

Severe weather in many areas of the U.S. in February didn't do much to resuscitate restaurant customer transactions at major chains which were already experiencing declines in the last months of 2020 and January.

Major chain transactions dipped by 13% compared to a year ago, and January brought a 9% decline, according to The NPD Group's Crest Performance Alerts. The alerts provide a weekly view of chain-specific transactions and trends for 75 quick service, fast casual, midscale and casual dining chains, according to a press release.

The month of February brought deep cold and snow and Texas was especially hit hard with a massive winter storm that knocked out power and water systems. During this period, customer transactions at major chains in Texas declined by 46% compared to year ago, according to the release.

Customer transactions at major full-service restaurant chains, which have been challenged throughout the pandemic by mandated dine-in restrictions and shutdowns, decreased by 33% in February versus a year ago. Major quick service restaurants chains, which represent the bulk of the restaurant industry transactions, realized a 12% decline in customer transactions in the month compared to a year ago.

"Aside from any unforeseen events or severe weather in major parts of the country, we should see customer transaction declines improving in the months to come," David Portalatin, NPD food industry advisor and author of Eating Patterns in America, said in the release. "The next several months will help us plot the course for the U.S. restaurant industry's recovery."