wolfstreet.com / by Wolf Richter / Jul 14, 2017
Six quarters in a row of year-over-year declines.
Foot traffic at chain restaurants fell 3% in June year-over-year. Same-store sales fell 1%, the sixteenth month in a row of year-over-year declines, completing the sixth quarter in a row of sales declines, the longest downturn since 2009.
Food sales were down, alcohol sales were down. The only thing that was up was prices, but it wasn’t enough to make up for the decline in guest count: the average amount per check rose just 2% in June.
“Brands seem to be reluctant to implement significant price increases given the current environment. Price promotions have been widely utilized, especially by struggling brands and segments to drive traffic,” said Victor Fernandez, Executive Director of Insights and Knowledge for TDn2K, whose Restaurant Industry Snapshot tracks sales at 27,000 restaurant units from 155 brands, generating about $67 billion in annual revenue.
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