Another sign that the foodservice industry is improving is that nondeal visits stopped declining, [image-nocss] according to NPD's CREST, which tracks consumer usage of commercial and noncommercial foodservice outlets.
Consumer spending at restaurants has also started to come back. Spending rose in the last three quarters of 2010, which yielded an increase in spending for 2010. The gain brings the industry nearly back to the dollar level registered in 2008.
"I believe that the improvements we're experiencing in the industry are a result of pent-up demand," said Bonnie Riggs, restaurant industry analyst at NPD. "Consumers are tired of pinching pennies and recession-weary, and going to a restaurant is an affordable way to get out and have fun."
According to NPD's CREST OnSite, which tracks usage of foodservice at business and industry, secondary schools, colleges and universities, hospitals, lodging, recreation, senior care, military, and vending segments, total noncommercial traffic declines eased in the fourth quarter compared to the previous year. Most notably, after 14 consecutive quarters of traffic losses, business and industry traffic increased 2% year over year.
"We are beginning to see many encouraging signs; however, with unemployment still over 9% and consumer confidence low, consumers continue to scrutinize every purchase," said Riggs. "There's no question value and promotion will continue to factor heavily in their restaurant selections. It will take a lot of creativity to drive more traffic in the coming year."
The NPD Group is a provider of consumer and retail information for a wide range of industries. It helps clients identify new business opportunities and guide product development, marketing, sales, merchandising and other functions. Information is available for the following industry sectors: automotive, beauty, commercial technology, consumer technology, entertainment, fashion, food and beverage, foodservice, home, office supplies, software, sports, toys and wireless.
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