QSR traffic shows growth in Q42024, RMS report reveals

USA – Traffic at quick-service restaurants increased by 0.8% in the fourth quarter of 2024, reversing a 1.1% decline from the previous year, according to the latest data from restaurant-focused consultancy firm Revenue Management Solutions (RMS).

The latest report aligns with findings from Black Box Intelligence, which observed a recovery in traffic and sales starting in September.

According to Black Box Intelligence, comparable traffic across the industry rose by 0.9% in November.

This recovery follows a wave of value offerings launched by fast food chains in the summer, which seem to be yielding positive results.

Brands such as McDonald’s, Burger King, and KFC had faced sluggish traffic growth last year, particularly while competing in value promotions.

McDonald’s began to see a rebound in traffic and sales during the third quarter with its $5 Meal Deal, but an E. coli outbreak in early Q4 led to a decline.

QSR traffic in Q4 experienced increases, primarily due to spikes in October and November, RMS reported.

However, December traffic fell by 1.9% compared to the same month in 2023, indicating a slowdown over the holidays.

Alongside the increase in traffic, RMS noted a 4% rise in net sales for QSRs in Q4, which included a 3.4% bump in the average check.

The rate of average price increases slowed to 3.1% in Q4, a significant drop from earlier in the year, when double-digit increases were more common.

With the continuation of value promotions into January, QSRs are expected to see further traffic improvements.

McDonald’s introduced its nationwide McValue platform, Del Taco expanded its value menu, and Taco Bell added items to its Luxe Cravings Boxes.

As inflation eases, experts predict strong consumer demand for dining out this year, although price sensitivity remains.

Victor Fernandez, Chief Insight Officer at Black Box Intelligence, commented that while inflation has constrained consumers, the industry is turning a corner.

Both consumers and operators are more optimistic about 2025, with inflation under control and price increases slowing.

While menu prices are unlikely to drop significantly, consumers have adjusted to the current dining costs.

Experts also foresee greater access to capital and private equity investment as interest rates decline, which could result in more mergers and acquisitions.

Additionally, restaurant operators are likely to invest in technology to improve efficiency and reduce costs.

However, closures of underperforming and outdated brands are expected to persist, as noted by Dan Rowe, CEO of Fransmart.

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