INDUSTRY TRAFFIC
Month to date in February 2024, Casual Dining traffic was down (-4.9%), bringing the 2-year to (-2.1%) slowing 540bps MoM (to date)
Month to date in February 2024, Quick Service traffic was down (-5.4%), bringing the 2-year to +1.6%) slowing 334bps MoM (to date)
Chili's Traffic is Improving
EAT is the Best Idea Long
This quarter, many established restaurant chains like Denny's, Cracker Barrel, Applebee's, and IHOP are talking about undergoing significant transformations to appeal to younger demographics, embarking on ambitious "full-body makeovers" that include comprehensive menu overhauls, marketing revamps, and enhanced digital experiences. Are they all taking a cue from Chili's, which went through a makeover beginning with the CEO Kevin Hochman joining the company in June 2022 and by June 2023 laid out his plans to the investment community in June 2023. Based on current traffic trends, the changes Chil's has made are benefiting traffic.
These efforts aim to balance innovation with simplicity, striking a chord with newer generations while addressing the urgent need for relevance in a rapidly evolving market. This wave of rejuvenation reflects a broader challenge these brands face: to adapt and reinvent themselves without losing their core identity in response to changing consumer preferences and the harsh realities of financial obsolescence, underscored by recent significant restaurant closures across the industry.
Month to date in February 2024, McDonald's traffic was down (-9.4%), bringing the 2-year to +3.4%) slowing 460bps MoM (to date)
Month to date in February 2024, Starbucks traffic was down (-16.2%), bringing the 2-year to (-2.7%) slowing 194bps MoM (to date)
