The biggest trend throughout the most recent quarter has been the trade down throughout the restaurant industry. Though same-store sales continue to trend positive across the board — likely thanks to ever-increasing menu prices — traffic has begun to slip at full-service restaurants, while limited-service brands are seeing a boost.
At fast-casual restaurants, same-store sales seem to be strong but still underperforming against expectations. Chipotle, for example, saw an increase of 5.6% but still referred to it as a tough quarter. Shake Shack, with a same-store sales increase of 5.1% and increased traffic, seemed more optimistic as it continues to target diners with “affordable luxury.”
In the quick-service space, restaurants are thriving. Krispy Kreme same-store sales were up 15% as that company continues to lean into its omnichannel strategy. Taco Bell saw increased same-store sales of 11% on the strength of its breakfast program, while the other QSR chains in Yum Brands’ portfolio also had increased same-store sales.
