State of the Restaurant Industry Report Points to Continued Growth in a New Normal

“A new normal.”

That term has become a staple in the American vernacular and according to the National Restaurant Association’s 2023 State of the Restaurant Industry report, it is also expected to define the restaurant industry.

Findings indicate that 70% of operators have begun to settle or are on a path to the new normal.

The report was described as an “authoritative look” at the restaurant industry and the opportunities before it based on nationwide surveys of restaurant owners, operators, chefs and consumers...

One in Five Meals Consumed at Home in Europe in 2023 Will Come from Restaurants

For the first time since the pandemic began, consumer spending in the food service industry in Europe bounced back to pre-pandemic highs in November 2022. This was a key finding of the latest “State of the European Food Service Industry”analysis, which was announced today by The NPD Group through its CREST consumer panel.

Continued hybrid working, spending more time at home, and the ease of both online shopping and ordering food for takeout and delivery has...

The NPD Group: Foodservice Traffic in Canada Grew by Double-digits in 2022

The past two years were about the recovery and revival of the Canadian foodservice industry. Visits to restaurants and foodservice outlets grew by 11% in 2022, over an 11% gain in 2021, reinforcing upward momentum, reports The NPD Group*. Consumer spending increased by 19% last year compared to the year before, primarily due to higher prices. NPD forecasts modest foodservice traffic growth in 2023 of just over 2%, which is the pre-pandemic growth rate.

Customer visits to quick service restaurants (QSR), representing 67% of total...

The NPD Group: Plant-based Beverages Food, Becoming Staple in Homes, Becoming Option at Foodservice

The recent buzz about plant-based foods at retail and foodservice has many questioning if interest in plant-based foods is a fad or a long-term trend. Plant-based is a small but expanding category, and as more innovations and products become available and accessible, consumer interest broadens. According to The NPD Group*, about 25 million consumers eat plant-based beverages and foods occasionally or regularly, consuming these foods as part of a meal or as an ingredient...

The NPD Group: Restaurant Industry Witnesses Stability Following Myriad of Headwinds

A pandemic, labor shortages and record inflation are just a few of the challenges that the foodservice industry has faced since early 2020.

The industry persevered and The NPD Group believes calmer seas may be ahead. Findings from The NPD Group show that U.S. commercial foodservice customer traffic to restaurants and other foodservice outlets ended 2022 flat compared to a year ago. Consumer spending at foodservice outlets was up 4%, thanks to higher prices.

“Looking forward to 2023, we anticipate improvements in supply chain disruptions, inflation deceleration...

Consumers Now Take a Holistic Approach to Their Health and Focus on Both Mental, Physical Well-Being

The focus on health and wellness evolved throughout the pandemic as consumers began seeking coping mechanisms for their altered lifestyles. The consumer’s need for normalcy at the height of the pandemic was the entry for a mental and physical health focus, reports The NPD Group. Compared to the pre-pandemic period, more consumers say that the amount and quality of sleep, work-life balance, and managing stress are important factors contributing to their health...

The NPD Group: Convenience Stores Are Attracting More Foodservice Visits

Convenience stores are the beneficiaries of more consumers looking for a beverage or a bite to eat on their way somewhere. Visits to convenience stores for foodservice items, like beverages and prepared foods, were up 2% in the three months ending November compared to a year ago, reports The NPD Group*. Consumer spending on foodservice menu items at convenience stores was up 8% for the combined months of September, October, and November versus a year ago. Units and dollars of foodservice products shipped from broadline...

Canada’s Foodservice Industry Posted Traffic and Dollar Gains in November

Canada’s foodservice industry recovery continued in November with an increase in consumer visits and spending, reports The NPD Group. November traffic to restaurants and foodservice outlets increased by 7%, and spending grew by 14% compared to a year ago. Full service restaurant visits increased by 17%, and quick service restaurant traffic grew by 7%. Retail foodservice, meaning prepared foods from convenience, grocery, and drug stores, declined by 9%, which turned the foodservice industry’s overall recovery trend slightly negative in November, down 1%, compared to the pre-pandemic level...

NPD Group Reports U.S. Consumers Will Host or Visit Family and Friends During the Holidays

Expect sales of barware tools and sets, alcohol-related beverageware, and appetizer serve ware to increase

COVID-19 put a damper on holiday entertaining the past two years, but this year is likely to be different. According to a survey conducted by The NPD Group, 52% of consumers are less concerned about COVID-19 this year compared to a year ago, up 20 pts from last year, and 55% said they plan to host or visit family/friends during the holiday season...

Black Friday Week Retail Sales Fell Short of Last Year, Reports NPD

Discretionary general merchandise retail sales revenue fell below 2019 levels for the first time this year

Black Friday week marked the sixth consecutive week of in-store sales revenue declines for U.S. discretionary general merchandise. During the week ending November 26, 2022, spanning Thanksgiving, Black Friday, and Small Business Saturday, sales revenue was 5% lower than during the same week in 2021, while unit sales were down 8%, according to U.S. retailer point-of-sale information collected by The NPD Group. Total November 2022 general merchandise retail sales...

Most Thanksgiving Day Meals Are in a Home: Groceries and Foodservice Help Make the Meals Happen

Restaurants may not play the most significant role on Thanksgiving Day, but do the Wednesday before 

A Thanksgiving Day host’s dream is to have a perfectly prepared feast on a beautifully decorated table surrounded by happy family and friends. However, it takes a lot of planning and preparation to make the Thanksgiving Day dream come true, and grocers and foodservice operators help to make it happen. Most, 67%, of Thanksgiving meals occur at the eater’s home; the remaining meals happen at another house...

The Canadian Foodservice Industry’s Recovery Slows in Q3

Canada’s foodservice industry has shown promising recovery over the past year; however, growth slowed in the quarter ending September compared to a better-performing quarter last year, reports The NPD Group*. Visits to Canadian restaurants and foodservice outlets were up 6% in the quarter compared to a year ago, when traffic was up 12%. Consumer spending was up 10% in the quarter ending September 2022 compared to a 20% increase in the same quarter last year.

“The closer we get to full recovery of the foodservice visits lost during the pandemic..."

With Food Prices Rising, Consumers Pull Back on Other Retail Spending, Reports NPD

Pre-holiday declines in general merchandise sales emerge as grocery spending continues to rise

U.S. general merchandise retail sales revenue declined during the three weeks ending November 5, 2022. Year-over-year sales revenue in October fell 5% below a year ago, followed by a 14% decline in the first week of November. Several factors contributed to declining sales, with the rising cost of living at the forefront, according to The NPD Group, which recently merged with Information Resources, Inc. (IRI) to create a leading global technology...

Consumers Plan to Do More Holiday Shopping In Stores Than Online, Reports NPD

Consumers have relied more on e-commerce since the pandemic began, but that’s changing this year

The number of consumers planning to shop online for the holidays fell from 85% last year to 80% this year, which is the largest ever shift favoring stores, according to the annual holiday purchase intentions survey from The NPD Group. This is also the first year, since before the pandemic, that consumers expect to make more of their holiday purchases in stores (46%) than online (45%). Checkout receipt-based insights from...

France Foodservice: The Gap is Widening Between the Recovery in Spending, Boosted by Inflation

The NPD Group forecasts a 2022 market down 5% in spending and 9% in visits, compared to 2019

The average ticket has jumped by 7% since 2019, all consumption occasions combined in fast food and table catering

Four out of 10 French people say they will go to a restaurant less often in the coming months

The French preserve their family outings

On the occasion of the publication of a survey dedicated to out-of-home catering*, The NPD Group , which recently merged with Information...

America’s Eating Patterns Adjusted to a Pandemic and Are Now Adapting to Higher Food Costs

Six macro trends currently shaping food and beverage consumption behaviors

Historically, there has been a rhythm to eating patterns in America; somewhat predictable habits formed by daily routines and needs. The early stages of the pandemic disrupted this rhythm, and just as eating patterns were returning to pre-pandemic normalcy, food inflation set them on end again, reports The NPD Group* in its recently released 2022 edition of Eating Patterns in America.

“The rate of change in U.S. consumers’ eating behaviors continues at a dizzying..."

Canadian Restaurant Industry Continues Recovery in August with Traffic Up from a Year Ago  

Pent-up demand for dine-in visits slows, and carry-out increased after several months of declines

Consumers continued their return to restaurants in August, increasing visits by 5% compared to a year ago, reports The NPD Group. Restaurant dollars were up 9% in the month versus a year ago. Dine-in visits slowed in August to a 28% increase from the triple-digit growth realized in the first months after the pandemic lockdowns. On the other hand, carry-out orders, which have been down since...

Breakfast Was U.S. Restaurant Industry Bright Spot in August 

QSR breakfast visits increased by 5% in August, 1% above the pre-pandemic traffic level

Breakfast was the most important meal of the day for the U.S. restaurant industry in August based on its visit growth, reports The NPD Group. Breakfast restaurant traffic grew by 4% in August compared to the same month a year ago and is now within 1% of recovering pre-pandemic traffic levels. Quick service restaurant (QSR) breakfast, representing 87% of restaurant breakfast traffic, increased visits by 5% in the month compared to a year ago...

Vangala Joins IRI and NPD as Chief Strategy Officer

Information Resources, Inc. (IRI) and The NPD Group (NPD), which recently merged to create a leading global technology, analytics and data provider, today announced that Malli Vangala has joined the company as chief strategy officer. Vangala joins the newly combined company from Microsoft, where he led strategic initiatives for the Microsoft 365 business, and succeeds Wei Lin Wong, who transitions to focus on his role as the president of Retail.

“We are very pleased to welcome Malli as we work to bring the full power of our combined organization to bear..."

Gen Zs Favor Quick Service Restaurants, Particularly Fast Casual Restaurants

Fast casual menus are more aligned with Gen Z’s food preferences and values

Older Gen Zs, ages 18-24, in the U.S. are discerning when choosing restaurants. Although price matters to this group, their taste preferences and definition of value dictate the type of restaurants they visit, reports The NPD Group. As a result, Gen Zs skew towards quick service restaurants, particularly fast casual, that balance value and focused menu.

In the 12 months ending July 2022, Gen Zs made 5 billion restaurant visits, 4.3 billion visits were to quick...

Consumers Back to Eating at Home, Eyeing Bargains as Costs Continue to Rise

During COVID-19, consumers opted to cook at home, citing concerns surrounding the virus and a new work-from-home lifestyle, making prep more manageable.

Essentially over the past year, consumers have flocked to restaurants again. However, inflation has paused the recovery in the foodservice sector and consumers are deciding to save some cash and cook more meals at home again, according to The NPD Group (NPD) and Information Resources, Inc. (IRI).

“To offset rising food costs, consumers are bargain hunting when...

Lower-income Households Hardest Hit by Inflation

Historically, the spending gap between higher- and lower-income households is more pronounced in times of high inflation. With food inflation at a 40-year high, the gap has widened again, and lower-income households are shifting their at- and away-from-home eating behaviors to stretch their food dollars. Eating more frozen and shelf-stable foods, using less expensive and private label brands, and cutting back on restaurant visits, are among the ways lower-income households are managing their food spending, reports The NPD Group, which recently merged with Information Resources...

Canadian Restaurant Industry Begins Its Steady Recovery in the Second Quarter of 2022

Dine-in restaurant visits grow by triple-digits

With the COVID public health restrictions lifted early in 2022, the Canadian restaurant industry began recovering from the steep declines it experienced during the pandemic lockdown periods. The industry finished the second quarter ending June with physical and online visits up 17% compared to a year ago, 2% below the traffic level in the second quarter of 2019 before the pandemic, reports The NPD Group. Restaurant customer spending, which, in addition to increased visits, reflects higher costs, grew by...

Business, Industry Foodservice Operations Jumpy by 35% in Q2 as Employees Head Back to the Office

Places like worksite cafeterias are recovering from losses seen during the pandemic as workers head back to offices, The NPD Group shared in its latest update on Business and Industry (B&I) foodservice operations.

According to NPD, in the quarter that ended June 2022, broadline foodservice distributors increased their case unit shipments to B&I foodservice operators by 35% compared to a year ago.

“B&I is an important growth segment for foodservice manufacturers and their foodservice distributor partners,” said Tim Fires...

Restaurant Visits Drop Amid Inflation, Higher Menu Prices

U.S. consumers decided to limit their trips to restaurants during the second quarter of 2022, reported The NPD Group.

Inflation and the rise in menu prices led to a 2% dip in physical and online restaurant traffic when compared to a year ago and down 6% below the pre-pandemic levels seen in 2019.

“Consumers continue to deal with rising inflation and higher prices. We see three ways consumers respond to higher menu prices. They trade down to lower-priced items, cut back on the number of items ordered, or reduce restaurant...

Older Gen Zs Are Entering Peak Restaurant Usage Stage

The pandemic, more competition for their dollars, and rising prices keep Gen Zs’ restaurant visits lower

The oldest among Generation Zs are 18 to 24 years old, an age group that, historically, is entering the heaviest restaurant usage stage, but history may not repeat itself with this generation, reports The NPD Group. Twenty years ago, when Gen Xers were young adults, they averaged 284 visits per person a year. Millennials, as young adults, were impacted by the Great Recession, causing a cutback in 40 restaurant visits per person a year...

Consumers Mitigate Rising Costs by Having More Dinners At Home 

In-home dinners will remain elevated above the pre-pandemic level through 2024

Inflation and other rising costs have consumers looking to cut expenses, and eating more dinners at home is one way they do it. Out-of-necessity dinners at home peaked during the pandemic but have since normalized but are still above the pre-pandemic level, according to The NPD Group. NPD’s Future of Dinner report forecasts that in-home dinners will remain at a heightened level through 2024.

Although in-home dinners will remain elevated, consumers...

New York City and Other Major Metro Areas are Coming Back from Pandemic Losses 

Spring Break and Pent-Up Demand Help to Advance Recovery of Lodging and Recreation Foodservice in April

Spring break 2022 was a stark contrast to two years ago when it was the height of the pandemic. Travel sources reported spring bookings up 134% from 2021, and the World Travel & Tourism Council projects that travel and tourism will reach pre-pandemic levels in 2022. As a result of more travel and tourism and the release of pent-up demand, case units shipped from broadline foodservice distributors to...

Pent-up Demand for Restaurant Dining in Canada Continues in April

Canadians made 75 million more foodservice visits in April compared to a year ago

Canadians made 75 million more foodservice visits this April than last year when most of the country was still in lockdown, reports The NPD Group. Online and physical visits to restaurants and other commercial foodservice outlets increased by 18% in April 2022 compared to a year ago, although still 10% below the pre-pandemic level in April 2019. Consumer spending at foodservice outlets, which reflects higher food and operational costs, is...

Sales of Food Preservation and Storage Products Grow by Double-Digits As Consumer Demand Increases

With 86% of meals sourced from home, food inflation at a 40-year high, the average U.S. household wasting $1,866 of food each year*, U.S. consumers are storing food and leftovers to stretch their food dollars and meals while reducing food waste. The return to worksites and schools and more extracurricular and outside activities has increased the need to pack food for away-from-home meals and snacks. These needs drive the demand for food storage products, reports The NPD Group. Consumers spent...

U.S. General Merchandise Unit Sales Fell 7% in April, as Retail Revenue Declined 1%, Reports NPD

As demand softens, the retail product mix needs to attract both value seekers and premium buyers

The consumer’s willingness to spend has been crucial to maintaining a healthy level of retail performance throughout the pandemic, but demand has been softening for several months. April 2022 U.S. general merchandise unit sales were 7% lower than a year ago, creating a 1% decline in sales revenue, according to The NPD Group.

“Higher retail prices have buffered demand declines but their escalation, combined with rising gas prices..."

Canadian Restaurants Enjoyed A Robust Return of Customers in the First Quarter

Full service restaurants benefitted from the pent-up demand to dine out

The Canadian foodservice industry continued to show promising recovery in the first quarter of 2022 compared to last year’s same quarter, reports The NPD Group. Physical and online visits to restaurants and commercial foodservice outlets increased by 18% in the first quarter compared to the same quarter last year, when traffic declined by 9% due to indoor dining restrictions. Consumer spending in the quarter grew by 27% compared to a year ago when spending declined by...

US Restaurant Industry Ends Challenging First Quarter with Customer Traffic Down from A Year Ago

In the first quarter of 2021, the third round of stimulus payments, availability of COVID vaccines and relaxed pandemic restrictions helped increase online and physical visits to U.S. restaurants by 3% compared to the same period a year before, according to The NPD Group. The first quarter of 2022, in contrast, presented a host of headwinds, including higher food and energy costs, for restaurant consumers and restaurants. Challenged by these headwinds and compared to a 3% gain in last year’s first quarter, online and physical...

The NPD Group Announces 2022 Top 50 US Restaurant Chain Rankings

The NPD Group has ranked the top 50 U.S. restaurant chains based on sales estimates representing each chain’s total U.S. system for the year ending December 2021. Recovery was evident for the U.S. commercial restaurant industry in 2021 as pandemic restrictions lifted, vaccinations increased, and pent-up demand led to consumers dining out more. Restaurant online and physical visits increased by 9% in 2021 compared to the 12% decline in 2020. Similar to the overall restaurant trend, aggregate sales for the top 50 chains grew 15%, from...

Restaurant Carry-Out is Losing Out to Delivery and Drive-Thru As More Convenient Ordering Options 

More than half of carry-out orders are placed at the counter

Restaurant carry-out, which dates back to ancient Rome, has provided a convenient eating solution for time-strapped civilizations for ages. However, with consumers always looking for the next level of convenience, like not getting out of the car, delivery and drive-thru orders have taken hold, making carry-out the less convenient service mode, reports The NPD Group. Carry-out orders were lagging drive-thru and delivery orders before the pandemic...

As Soon As Pandemic Restrictions Lifted, Canadians Flooded Back Into Restaurants 

One of the most predictable behaviours that emerged over the past two years of the pandemic is Canadians will flood into restaurants as soon as restrictions lift, which happened in February, reports The NPD Group. Online and physical visits to Canadian restaurants and foodservice outlets increased by 17% in February compared to February 2021, when traffic declined by 23%. Despite the double-digit increase in visits, commercial foodservice traffic remains -9% below the pre-pandemic level in February 2020, according to NPD’s continual tracking of the Canadian foodservice industry...