News

Restaurant chain transactions drop 43% 2nd week of April

April 20, 2020

Total restaurant transaction fell 43% during the second week in April, led by a continued drop in QSR transactions that reversed a move towards stability, according to a report by the NPD Group.

Total restaurant transactions appeared to be stabilizing during the week ended April 5, slowing from a 42% decrease to 41% from the prior week, the report showed. But a further decrease in QSR transactions brought total restaurant transactions down 43% in the week ending April 12 compared to year ago. 

The numbers reported today by NPD Group indicate that for QSR transactions alone for the week ending April 12, the number was down 41%, compared year ago figures. 

"I'm hesitant to make a big deal out of this week-over-week decline because I think some volatility during a time of unprecedented disruption is expected," says David Portalatin, NPD food industry advisor and author of "Eating Patterns in America," in the release.  "With 5 million additional unemployment claims this week, we may begin to see consumers hesitant to spend at restaurants. 

"In addition, while almost all U.S. restaurant dining rooms are closed, there is mounting evidence that some units are closing altogether. Although much of the business can be absorbed by other locations, especially chains, it's reasonable to conclude that there is a point at which unit closures would erode volume further. On the other hand, we may see some lift from the government stimulus checks that have been issued."

Full-service restaurant chain transaction declines have held at 79% for the last three weeks, NPD said. Midscale/family dining restaurant transactions fell 81% in the week ending April 12, compared to year ago. That's the same decline as the two weeks prior. Meanwhile, customer transactions at casual dining restaurant chains were down 77% that week, steady with the previous week. 

NPD tracks these changes via its weekly view of chain-specific transactions and share trends for  70 quick service, fast casual, midscale and casual dining chains.