In this episode of “On Foodable Weekly,” host Paul Barron explains key findings on the current state of the restaurant industry.
According to Foodable Labs, an industry-wide restaurant recession is not currently taking place. This conclusion is based on a close analysis of the total Social Restaurant Visits (SRVs) recorded and compared so far for the year of 2016.
It appears that the restaurant industry experienced a five-month consistent decline in SRVs from March 2016 to July 2016. In February, total SRVs were at an all-time high at just under 126 million, but by July, SRVs declined by almost 16 million. However, by August, the figures normalized, jumping back to just over 122 million SRVs, which even surpassed the figure for the month of March, where we first noticed a small decline.
MasterCard’s latest SpendingPulse report reveals that U.S. sales were up 4.6 percent year-over-year in July, showing the largest year-over-year growth since October 2012. On top of that, the new data shows U.S. consumers are continuing to shift their spending towards “experiences,” like visiting restaurants, entertainment, and travel instead of material goods. This helps to validate Foodable Labs' findings that the short restaurant recession is over, despite what other non-industry media are reporting.
Watch the full episode to learn more!