After Promising Run, Restaurant Sales Tumble in July

Reflecting on why restaurant sales, despite a brief “spike” in overall revenue, are on a downslide, heading towards the worse. Especially so for fast food chains and not so much fine dining. A few reasons are; households are being cautious of spending habits and the cost of wages paid for qualified employees to work. The economy may still be improving but it is obvious that households are still trying to be cautious in the ways they spend, as they would rather save.

Key Takeaways:

• Traffic plummeted 4.7 percent in the month—1.7 percentage points worse than June.
• July cooked any optimism the restaurant industry might have felt from a promising June.
• Calculated on a two-year basis, July’s sales were down 4.2 percent versus July 2015, and same-store traffic declined an eye-opening 8.7 percent.

“Same-store sales dropped 2.8 percent across the landscape, a significant 1.8 percentage point decline from the previous month, when traffic and sales reached their best marks since 2016.”

Read more: https://www.qsrmagazine.com/news/after-promising-run-restaurant-sales-tumble-july