Restaurant VIP Card News Article

Restaurant sales drop as consumers cut spending

21 Feb, 2013 by Restaurant VIP Card staff, via

Consumers ordered fewer premium entrées in January, the NRN-MillerPulse survey finds

Restaurant industry same-store sales declined in January due to pullback from consumers, according to the latest NRN-MillerPulse survey.

Contributing to the same-store sales dip at restaurants is a significant drop in premium entrée orders, possibly due to consumer frugality after increases in the payroll tax, according to MillerPulse.

Still, there were a few bright spots in this months report. After showing a significant decline in January, consumer spending plans were stronger at every restaurant segment in February, and operators were optimistic about February same-store sales. A net 9 percent of operators believed that February sales would be better than January, the survey found. That number was calculated by subtracting the 24 percent of operators who thought sales would be worse in February from the 33 percent that believed things would be better. For the next six months, however, the outlook remains split, with quick-service restaurants expecting positive results and full-service restaurants expecting tough times to continue.

The survey found that while the industry as a whole is generally optimistic about the future, operators have serious concerns. COperators are significantly worried about guest traffic,D Miller said, Cwhich leaped to the number one concern for the first time since 2009.D

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