Industry Trends July 2022
US Quick-Service Trends
QSR traffic trends in the US stabilized for Q2 2022 compared to Q1. Pricing activity also leveled in Q2. While average price jumped significantly from a 6.8% increase YOY in Q4 2021 to 10.3% in Q1 2022, Q2 only saw a slight increase, to 10.8% YOY.
Breakdown of Quarterly QSR Trends
The following is a snapshot of US Quick-Service Restaurant (QSR) trends for Q2 2022.
When compared to Q2 2021:
- QSR net sales are up 1.4% YOY, positive news for operators after experiencing a decline in overall performance in Q1 of 2022 due to the Omicron variant spread throughout the US.
- Traffic is down 5.4% compared to the same quarter in 2021, though trending upward when compared month-over-month. Traffic trends are down -4.0% YOY in June 2022, a slight improvement from the -4.1% YOY we saw in May. This is a significant increase from the year’s lowest YOY reporting of -9.4% in April 2022.
- In Q2 2022, average check is up 7.2% compared to Q2 2021 and continues to drive sales performance. Average net price is up 10.8% in Q2 2022. In our Q2 consumer survey, almost 1 in 2 respondents are managing costs by ordering less from restaurants, a trend reflected in the significant decrease in basket size — down -3.2% YOY. To receive our exclusive consumer reports, subscribe to our mailing list.
When looking at the contribution to the overall traffic loss (-5.4%):
- Lunch (-2.6%) and dinner (-2.3%) had a larger contribution to the overall decline in Q2 traffic.
- Breakfast (-0.4%) traffic stabilized for the quarter after a sizable drop in April when traffic was down -2.9% YOY.
RMS will continue to track daypart trends as we enter Q3.
Drive-thru Traffic Hits A Rough Patch
When comparing revenue channels, drive-thru traffic reported the poorest performance, down -10.3% for the quarter. Drive-thru represents approximately 75% of total QSR sales (down from 90%+ at the height of the pandemic), so operators are watching the channel carefully.
The good news? Consumers are seeing a drop in gas prices, bringing guests back to drive-thrus, especially in the summer as families look for entertainment.
As restaurants proceed with caution in the current inflationary environment, data-driven solutions based on specific guest patterns can help. Reach out today with questions. We’re here to help.
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In this current inflationary environment, understanding your restaurant data has never been more critical, noted QSR Magazine’s Danny Klein in a recent state of the industry report featuring RMS insights. For more on the consumer reports referenced in the article, click here.
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