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The following is a snapshot of US Quick-Service Restaurant (QSR) trends for Q4 2024.
Note: Trends may vary slightly depending on data availability at the time of reporting.
In Q4, U.S. QSR traffic showed improvement, mostly driven by the positive traffic spike seen in October and November. Traffic increased by +0.8% YOY compared to Q4 2023, which saw a decline of 1.1% YOY. However, December’s QSR traffic was down 1.9% YOY compared to December 2023, indicating that fast-food brands experienced lower traffic during the holiday season in 2024 than in 2023.
Average fast-food price increases in Q4 continued to rise, up +3.1% YOY. Price increases were stable throughout 2024.
When comparing quarterly fast-food performance trends YOY (Q4 2024 to Q4 2023):
Unlock valuable insights into your customers’ transactions and the factors impacting your restaurant’s net sales with RMS. Connect with our team today for a personalized sales analysis tailored to your unique business objectives.
Restaurant traffic slowed in 2024 as price sensitivity took center stage. While late 2024 offered some optimism, consumer caution is likely to persist in 2025. This raises an important question: how can restaurant leaders maintain profitability without resorting to deep discounts? The answer lies in redefining the value equation to resonate with today’s cost-conscious customers. Let’s explore three core restaurant strategies to make this happen.
In a crowded market, understanding the competitive landscape is critical to staying ahead. Thanks to their expanding range of ready-to-eat options, convenience stores and grocery stores are becoming more attractive to young adults and families. However, restaurants can still appeal to the desire for convenience by offering “something special” that elevates their offerings. Premium menu items have a lower price sensitivity, and Gen Zers are wild about specialty beverages and innovative flavors.
Additionally, it’s crucial to stay informed about your competitors. While gathering competitive pricing data can be time-consuming, having a comprehensive view of competitors’ menu changes can significantly impact your decision-making. Restaurant technologies, such as RMS’ Competitor Price Intelligence, simplify this process by providing up-to-date insights on in-store and delivery prices.
Winning QSR brands have two things in common in this environment: digital transactions account for a majority of overall sales and they’ve won over the still-buying younger generations. Top brands drive up to 70% of all transactions through digital, while just 20% of checks are digital across the industry. Whether ordered on a kiosk, in-app, on a website or via a third-party delivery provider, on average digital checks are between 25%-30% higher than non-digital checks.
Digital also attracts Gen Z, the generation most likely to increase their restaurant usage, according to our Q3 Consumer Survey. To further increase loyalty, offer order review and tracking so they’ll be confident their meal will be available correctly.
At the recent Restaurant Finance & Development Conference, RMS stressed the importance of the value equation. Today’s diners demand value beyond price—offering quality, quantity and an experience that feels worth their investment. Our research shows that those spending more on restaurants value promotions that offer the most quantity for the price, but quantity alone isn’t enough. RMS’s Customer Pain Points Consumer Report found that quality is the #1 driver of restaurant choice, followed by budget-friendliness and location/atmosphere.
Quality is a crucial value component, too. Maintain your long-term strategy (everyday menu) to appeal to customers who have traded down to your brand. Beyond price, they’ll want to feel they are getting more than just a “cheaper” meal. Hold on to these new customers by releasing new products and offering experiences that elevate the overall fast-food journey.
By addressing these three critical areas—competition, customer engagement, and core value—restaurant leaders thrive in 2025’s challenging landscape. Ready to craft a strategy that works? Get in touch with our team to get started!
From shifting dining habits to the growing demand for value, our Q4 2024 Consumer Trends report uncovers the key drivers shaping today’s restaurant landscape. With Gen Z and millennials boosting QSR traffic and cost-conscious diners rethinking delivery, now’s the time to refine your dine-in and drive-thru strategies. Dive into the report to learn how you can deliver the value consumers crave.
Say goodbye to manual data collection with Competitor Price Intelligence. Monitor competitors and benchmark your menu with pre-categorized item comparisons. Get started today.
Restaurant traffic slowed in 2024 as price sensitivity took center stage. While late 2024 offered some optimism, consumer caution is likely to persist in 2025. This raises an important question: how can restaurant leaders maintain profitability without resorting to deep discounts? The answer lies in redefining the value equation to resonate with today’s cost-conscious customers. Let’s explore three core restaurant strategies to make this happen.
In a crowded market, understanding the competitive landscape is critical to staying ahead. Thanks to their expanding range of ready-to-eat options, convenience stores and grocery stores are becoming more attractive to young adults and families. However, restaurants can still appeal to the desire for convenience by offering “something special” that elevates their offerings. Premium menu items have a lower price sensitivity, and Gen Zers are wild about specialty beverages and innovative flavors.
Additionally, it’s crucial to stay informed about your competitors. While gathering competitive pricing data can be time-consuming, having a comprehensive view of competitors’ menu changes can significantly impact your decision-making. Restaurant technologies, such as RMS’ Competitor Price Intelligence, simplify this process by providing up-to-date insights on in-store and delivery prices.
Winning QSR brands have two things in common in this environment: digital transactions account for a majority of overall sales and they’ve won over the still-buying younger generations. Top brands drive up to 70% of all transactions through digital, while just 20% of checks are digital across the industry. Whether ordered on a kiosk, in-app, on a website or via a third-party delivery provider, on average digital checks are between 25%-30% higher than non-digital checks.
Digital also attracts Gen Z, the generation most likely to increase their restaurant usage, according to our Q3 Consumer Survey. To further increase loyalty, offer order review and tracking so they’ll be confident their meal will be available correctly.
At the recent Restaurant Finance & Development Conference, RMS stressed the importance of the value equation. Today’s diners demand value beyond price—offering quality, quantity and an experience that feels worth their investment. Our research shows that those spending more on restaurants value promotions that offer the most quantity for the price, but quantity alone isn’t enough. RMS’s Customer Pain Points Consumer Report found that quality is the #1 driver of restaurant choice, followed by budget-friendliness and location/atmosphere.
Quality is a crucial value component, too. Maintain your long-term strategy (everyday menu) to appeal to customers who have traded down to your brand. Beyond price, they’ll want to feel they are getting more than just a “cheaper” meal. Hold on to these new customers by releasing new products and offering experiences that elevate the overall fast-food journey.
By addressing these three critical areas—competition, customer engagement, and core value—restaurant leaders thrive in 2025’s challenging landscape. Ready to craft a strategy that works? Get in touch with our team to get started!
Get the latest
Unlock the latest insights to drive sales, enhance guest experience and maximize profitability.
