A new report published by tdN2K has revealed that the restaurant industry enjoyed an ‘encouraging’ month in May.
Following a disappointing April, May saw restaurant same-store sales grow by 1.1%, representing a 1.6 percentage point rebound compared with last month’s year-over-year growth rate.
Victor Fernandez, vice president of insights and knowledge for TDn2K said: “As we expected, May ratified that the relative strength continues for restaurants when it comes to sales momentum.”
He continued: “What is even more encouraging for the industry was that in a month relatively free of external factors, such as winter storms and holiday shifts which have muddied the results in recent months, restaurants were able to post some encouraging sales growth.”
Despite the good news, however, not all of the results in the report were positive; the industry is experiencing record high staff turnover rates while guest counts continue to fall for most brands.
There are also fears that trade wars with both Mexico and China could result in further economic slowdown for the industry.
Joel Naroff, president of Naroff Economic Advisors and TDn2K economist said: “After growing strongly for nearly a year, the economy has entered a period of significant uncertainty, created by the escalation of the use of tariffs to include not just China, but also Mexico. Our two largest trading partners are being pressured and that affects business and consumer costs.”