According to the food service research by the NPD Group, fast-casual eateries had contributed to the restaurant industry's largest traffic gain in the third quarter through serving quality food at great or reasonable prices. The trend is very fruitful and effective for the fast-casual chains like Chipotle Mexican Grill and Noodles Co.
Fresh and high quality food are being offered by and is the main focus of fast-casual eateries. Though they are more expensive than fast-food chains, they actually provide better quality dining experiences for their customers.
In the third quarter, the fast-casual category posted an 8% gain in traffic across all day parts compared to the previous year. However, investors may not have been that impressed with the figures as Chipotle stock and Noodle shares were still down a bit.
Reports also said that third quarter foot traffic to Mexican quick-service restaurants as well as to coffee, donut and bagel areas went up by 5% compared to the previous year. This benefits chains like Starbucks, Dunkin' Brands, and YUM Brands.
On the Hamburger quick-service traffic area, foot traffic fell by 3% compared to last year. This is a detractor to McDonald's and Burger King. Total foot traffic at U.S. restaurant and food service outlets remained flat for the third quarter.
The growth in the foot traffic in fast casual, in coffee, donut and bagel houses and in Mexican quick-service restaurants actually "shows that consumers still have an interest in going out to restaurants," according to a restaurant industry analyst for NPD and continued, "Those restaurant concepts that are meeting the needs of today's food service consumers will win their visits."
The report added that total consumer spending at restaurants went up by 3% because of "average eater" check gains. Check as well as dollar gains are also in line with the food away-from-home inflation.
