RGSS

Sales & Traffic Not the Only Challenges for Restaurants, Guest Sentiment Takes a Hit in December

Retrieved on: 
Friday, January 21, 2022

Restaurant traffic also declined, although it held up a little better than sales.

Key Points: 
  • Restaurant traffic also declined, although it held up a little better than sales.
  • In addition to sales and traffic softening in December, restaurants also faced difficulties satisfying their guests.
  • Top quartile full-service companies had 16% better food sentiment and 14% better beverage sentiment than the median company in Q4.
  • Raleigh also tends to have lower restaurant sentiment and was the market with the lowest beverage and value sentiment.

Restaurant Staffing Challenges Driving Declines in Speed of 'Service' Sentiment

Retrieved on: 
Thursday, November 18, 2021

Meanwhile, restaurants are still challenged by staffing constraints which are complicating restaurant execution.

Key Points: 
  • Meanwhile, restaurants are still challenged by staffing constraints which are complicating restaurant execution.
  • Given the staffing limitations, it is no surprise to see more negative online reviews about restaurant 'service'.
  • Speed of 'service' sentiment was down by an even larger margin (16%) compared to immediately before the pandemic (Q1 2020).
  • Furthermore, its value pre-COVID (Q1 2020) was 3.5 times smaller than speed of 'service' net sentiment among limited-service brands.

'Ambiance' Sets Apart Top Performance Amid Suffering Restaurant Sales & Traffic

Retrieved on: 
Friday, October 22, 2021

In addition to soft sales and traffic, the industry continues to face widespread labor shortages, supply chain difficulties and online guest complaints noting the deterioration in the restaurant experience.

Key Points: 
  • In addition to soft sales and traffic, the industry continues to face widespread labor shortages, supply chain difficulties and online guest complaints noting the deterioration in the restaurant experience.
  • Although the decline in sentiment has been gradual, September had the lowest percentage of positive reviews centered around restaurant 'food' since February.
  • The expected slowdown in the overall economic growth and rising inflation will be a drag on future restaurant sales growth.
  • Restaurant performance was stronger during the fourth quarter of 2019 than it was in previous quarters, which means tougher comparisons when analyzing sales and traffic growth in the upcoming quarter.

COVID Fears Fuel Divide in Sentiment & Sales for Limited & Full-Service Restaurants

Retrieved on: 
Thursday, September 16, 2021

In August of 2020, the percentage of sales from off-premise channels was much higher, which tends to result in lower "food" sentiment scores.

Key Points: 
  • In August of 2020, the percentage of sales from off-premise channels was much higher, which tends to result in lower "food" sentiment scores.
  • Consequently, the effects on guest sentiment of these shifts in business activity also differed between limited-service restaurants and those in full-service.
  • Sentiment increased across all key topics tracked, but the month-over-month guest sentiment of "food", "service" and "ambiance" for family dining was particularly strong.
  • Limited-service restaurants experienced a decrease in guest net sentiment during the month, with the steepest declines coming from fast casual.