Food & Beverage

QSR transaction numbers help temper November US restaurant sales declines

Fast food chain transactions buoyed November sales declines for the restaurant industry. (Photo: iStock)

December 9, 2020

Even with COVID cases surging throughout the U.S. and some states reducing restaurant capacity, customer transaction declines at major restaurant chains improved from October compared to a year ago from declining 8% from October's 9% drop in year-over-year sales, The NPD Group said in a news release.

This improvement was aided by major QSR chains' proficiency in offering off-premises services, like carry-out, drive-thru and delivery, NPD said. Transaction declines at QSR chains — which represent the bulk of industry transactions — fell just 7% in November versus year ago, the company said.

"Major quick service restaurant chains have learned to expand their already high capacity for off-premises volumes," NPD Food Industry Advisor David Portalatin said in the release. "We should continue to expect drive-thru and delivery to be performance drivers for the best performing restaurant operators as consumers continue to shift meal occasions to the home."

While dine-in restaurant traffic for the total industry declined by 53% in October compared to year ago, off-premises visits increased by 21%. Total restaurant carry-out, which holds the largest traffic share of off-premises services at 46%, increased by 6%. Drive-thru, which represents 43% share of traffic, grew by 24% and delivery, which represents 11% share, realized a gain of 125% in October over year ago numbers, NPD said.

Off-premises gains, however, come at the expense of full-service restaurants, which were mostly dine-in operations.

Although full-service restaurant chains were offering more off-premises services, like carry-out and delivery, customer transaction declines remained in the double-digits.

In November, full-service transactions were down 23% with declines deepening in the latter half of the month as the rise of COVID cases resulted in restaurant capacity and dine-in restrictions across the country.