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Restaurant sector continues growth amid recession fears, report shows

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The restaurant industry has posted its second consecutive month of same-store sales growth despite recession fears, a new report shows.

According to new data from Black Box Intelligence, the industry grew by 0.1% in the face of a slowdown in sales in the second quarter of the year.

While there has been a small growth in same-store sales, the overall figures for traffic showed a 3.1% drop from September as more people move towards take-out and delivery options.

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The report continues to detail that 11 regions experienced positive sales growth with the Western region experiencing the highest sales growth at 1.4%, while Texas experienced a 0.94 decline in growth.

The new data is based on weekly sales from over 170 brands across 31,000 locations and $72bn in annual sales.

Vice president of insights and knowledge for TDn2K, Victor Fernandez, said: “What is even more encouraging for the industry is that this small positive growth during the last two months has been achieved despite the industry lapping over two months with relatively strong performance in 2018.

“Given the relentless erosion of guest counts, the industry is holding its ground surprisingly well when it comes to sales in the most recent months. The reason has been the acceleration in guest checks year over year. Consumers have signalled they are willing and able to spend increasingly more every time they eat out.”

Tags : recessionrestaurantssales growth
Matthew Trask

The author Matthew Trask

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