Menu Prices up 7.7%
In June, Limited service menu prices were 7.8%, up 60bps over the last 12 months, while full-service menu prices rose 6.2%, down (-270bps) over the past 12 months.
The CPI for Food Away from Home increased by 7.7% in June 2023, according to the BLS – representing the third consecutive month of decelerating growth and the smallest increase since July 2022. Growth in grocery prices slowed even more significantly in recent months. The CPI for Food at Home rose 4.7% in June 2023 – the smallest 12-month increase since September 2021. While still elevated in historical terms, the 4.7% increase was a significant departure from a year-long period of double-digit gains – including a peak increase of 13.5% in August 2022. Overall consumer prices increased 3.0% in June 2023 – the 12th consecutive month of decelerating growth and the smallest 12-month increase since March 2021. The core CPI (excluding food and energy prices) increased 4.8% in June 2023, nearly two total percentage points below the peak of 6.6% registered in September 2022. Within the food-away-from-home sector, growth in limited-service menu prices outpaced the full-service segment in recent months. Prices for limited-service meals increased by 7.8% in June 2023. That was down from the recent peak of 8.2% in April, representing the strongest 12-month gain since the beginning of this data series in 1997. Full-service menu prices rose 6.2% in June 2023. That was well below the 9.0% gains posted during 2022 and represented the smallest 12-month increase since November 2021.
Restaurant Sales July
Casual Dining traffic slowed in the first week of July after sequentially improving in June
After six weeks of declining traffic in May and part of June, QSR has seen three consecutive weeks of positive traffic.
