Restaurant Traffic Falls 2.3% in March as $4.50 Gas Squeezes Dining Budgets
Updated
Updated · CNBC · May 11
Restaurant Traffic Falls 2.3% in March as $4.50 Gas Squeezes Dining Budgets
11 articles · Updated · CNBC · May 11
March restaurant sales softened across chains including Applebee's and Domino's as consumers pulled back on dining out after U.S. gas prices climbed above $4.50 a gallon.
43% of drivers surveyed by Numerator said they have cut back on dining out or takeout since fuel prices started rising, with executives saying low-income customers are trading down first.
Applebee's is responding with a $15.99 all-you-can-eat promotion, while McDonald's and Chili's said value offers are helping them defend or gain share even as overall spending shrinks.
Results were uneven: Chipotle said March weakened but later improved, Shake Shack saw only modest softening, and Burger King posted 5.8% U.S. same-store sales growth.
The pressure traces to the U.S.-Iran war, which pushed fuel costs higher and helped drive consumer sentiment to a record low, leaving restaurants exposed if gas stays elevated.
Is the restaurant downturn a temporary shock from high gas prices, or a permanent shift in American spending habits?
With gas and tariffs straining budgets, which U.S. industry will be the next to face a consumer spending crisis?
Beyond discounts, how are winning restaurants redefining 'value' to attract customers in this affordability crisis?