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Restaurant Traffic Slows in January as Guest Check Growth Hits Record High
Fewer people are dining out, while the cost of a check is rising due to inflation, rising menu prices and the ongoing supply chain issues.
According to data from Black Box Intelligence, while restaurant traffic slowed -0.9% during the month of January, the average guest check hit a record high.
Despite the drop in restaurant sales in January 2022, Black Box Intelligence said that after weathering yet another wave of COVID infections, restaurants are in a more favorable position regarding future growth than this time last year.
Lower guest counts continue to affect the restaurant industry: Aside from the omicron variant that prevented many from leaving their homes due to illness, rising food prices are causing concern for consumers and restaurants.
Inflation hit a 40-year high in January at 7.5%, and the economic pressure is being felt by consumers and restaurants alike. In order to offset the cost of rising food prices, brands are raising menu prices. In turn, this results in higher guest checks, which may deter consumers from eating outside their homes. Additionally, staffing shortages continue to affect the industry, as does the ongoing supply crisis.
The Fed is expected to introduce several interest rate hikes throughout the year, with a goal of taming inflation and helping the economy stabilize.
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