Dive Brief:
- Fast food traffic declined in May by 4.4%, continuing a monthslong streak of traffic slides, according to Placer.ai data. Of the five months of data so far this year, February alone saw a year-over-year increase in QSR traffic.
- Full-service traffic, on the other hand, rose 0.7% after two months of consecutive declines, Ezra Carmel, content writer at Placer.ai, wrote in a report, adding that the segment likely benefited from Mother’s Day and a “favorable calendar shift.”
- Short visits under 10 minutes, which are typically off-premise occasions, declined by 6.8% in May, suggesting that guests are conserving their fuel consumption and focusing more on dine-in service, Carmel said.
Dive Insight:
The latest decline in traffic suggests that value-oriented pricing and promotions, which have been a huge focus across the fast food segment since 2024, may not be enough to keep customers coming back. Full-service chains, like Chili’s, Texas Roadhouse and Longhorn Steakhouse, have been winning with their value propositions in recent quarters, largely because of improvements to service models, food quality and customers feeling like they are getting more for their money thanks to the on-premise experience.
“While consumers continue to make room for special-occasion dining, value-oriented segments face mounting challenges as economic pressures persist,” Carmel wrote. “And with short-duration visits declining across both QSR and fast casual chains, elevated fuel costs may be reshaping how consumers approach their favorite chains.”
Fast food chains are working toward improving food quality and hospitality, however. McDonald’s and Wendy’s have all launched updates to their chicken menus within the past year. McDonald’s recently announced a strategy focused on menu innovation, as well as improvements to food quality and customer and employee experience. Burger King remains focused on its remodel strategy from a few years ago that has already helped boost traffic.
