The restaurant industry is experiencing a summertime slowdown, according to a new study from TDn2K.
The report claims that restaurant sales came to a crawl during June, highlighting the industry’s frequent traffic woes and bringing up new concerns for a sales slowdown during the second half of the year.
Same-store sales growth for the second quarter of 2019 was 0.2 percent, representing a 0.7 percentage point drop from the growth rate reported for the first quarter.
Average same-store sales growth for the last two quarters of 2018 was 1.3 percent, while the average for the first two quarters of 2019 is much lower at 0.5 percent.
The report also said that relying on menu price increases will not keep the industry afloat for long, especially as chains keep adding new units, giving guests more dining options.
At a regional level, seven of the 11 regions tracked by TDn2K posted positive same-store sales growth, with Florida, Mid-Atlantic, New York-New Jersey and Texas posting negative growth for the month.
Victor Fernandez, vice president of insights and knowledge at TDn2K, said: “Although we would rather see strong positive sales growth consistently at 1-to-2 percent every month, the essentially flat sales growth during June and the small positive growth during the second quarter don’t indicate much change for the industry.”
“The reality for the last ten years continues to be the same.
“Restaurants have suffered from declining guest counts, but the relatively stronger economy of the last two years has enabled rapidly accelerating guest checks to lift the industry into positive same-store sales growth.
“That pattern continues today, especially when analyzing the results from a longer time perspective.”