Restaurant Same-Store Sales Growth!
by Kevin Stockslager, Associate Vice President at Wray Executive Search
Exciting news for the restaurant industry this week, as MillerPulse reported the first increase in same-store sales in a year, as sales increased 0.6 percent in May. Of note and what most saw as a surprise, the casual dining segment saw a 0.8 percent growth in same-store sales, compared to an increase of 0.5 percent for the QSR segment. While encouraging, the restaurant industry did continue to see a decline in traffic for the 15th straight month, falling 1.1 percent. However, the 1.1 decline was noticeably better than the 2.3 percent average decrease in traffic that the restaurant industry has been experiencing the past year.
While not all brands fared well over the past few months, whether it was filing for bankruptcy (Ignite Restaurant Group and Soupman), closing units (Papa Murphy’s), or experiencing continued declines in same-store sales and traffic, the recent news was positive for the industry as a whole. As the pricing gap between grocery stores and restaurants narrows and gas prices remain low, many anticipate a positive outlook for the remainder of 2017 with regards to same-store sales.
Additionally, restaurant brands continue to invest in technology and focus on pick-up, delivery, and catering to combat struggling traffic numbers. Partnering with online ordering platforms such as Olo, MenuDrive, and ChowNow; as well as delivery service providers like Uber and DoorDash has made it easier and more efficient for companies to offer delivery services to their customers.
So some good news for the industry this week, with signs pointing towards continued growth in same-store sales. And perhaps the incremental improvement in traffic is another sign of good things to come the remainder of 2017.
Kevin Stockslager (845) 863-5562