Fast Food Foot Traffic is Dipping While Net Sales Remain Up. Can QSR Keep This Dynamic Up?

 

It’s been a tough couple of years for restaurants and QSRs. The pandemic, supply shortages, and inflation have done the notoriously tight-budgeted industry no favors. But as those issues fade into history, what does the future hold for the restaurant and QSR industry? Recent Revenue Management Solutions quick-service restaurant (QSR) data for January 2023 sheds some light on how the fast food side of the market is faring. Long story short, fast food foot traffic is taking a hit while sales remain up. How sustainable is that dynamic?

Revenue Management Solutions found that foot traffic for QSRs was down 4.2% in Q4 2022 compared to 2021. At the same time, net sales remained consistent with the previous quarter’s growth path, staying positive with 6.1% growth YoY. How can sales be up with less people in store? The culprit is pricier fast food. Inflation is pushing more QSR chains to raise prices, and it’s reflecting in the data. Average prices were up 16.2% YoY in Q4 2022, peaking a consistent hike in price growth rates each quarter. Even with quantity per transaction dipping by 4.8%, average check sizes and net sales remained up for Q4. When it comes to more niche QSR market segments like breakfast food, foot traffic trends were even more drastic. Whereas fast food foot traffic for lunch and dinner were down 4.8% and 2.1% respectively, breakfast topped the list with a 7.3% dip in foot traffic.

All in all, QSRs are still seeing a boost in sales, but less people are coming through the door (or drive-thru) compared to last year. The customers that remain are buying less items, but because of higher prices, are paying more per check. What’s to blame here for the decline in foot traffic? Are higher prices dissuading customers, or are other factors at play? And as foot traffic and quantity per transaction dip, can QSR make up the difference with continuously-higher prices? Andre Natera, host of the podcast Chef’s PSA, renowned chef, and board member of the Texas Food and Wine Alliance, gives his analysis.

Andre’s Thoughts:

“Looking at the data, you can’t help but wonder if this is a situation of like death by a thousand cuts. You’re affected by the amount of people that are working from home, so that takes people off the road. You’re also impacted by the amount of people that aren’t looking for the traditional breakfast anymore, even a sandwich, or pancakes or whatever the case may be.

Most of the breakfast today is drinkable: a cup of coffee, a smoothie or a green juice or something like that. Have restaurants adjusted quick enough to that and are all the commodity price increases affecting people’s decisions, because the prices increased on the restaurant end? But it’s also affecting their own spending habits as well, so I don’t think you could pinpoint one answer. I think there’s probably a multitude of things going on here, but it’s definitely something that people need to keep their eye on”

Follow us on social media for the latest updates in B2B!

Image

Latest

benefits costs
External HR Support Can Help Small and Midsize Businesses Manage Rising Benefits Costs and Compliance Complexity
October 27, 2025

Healthcare costs are surging, and compliance landscapes are growing more complex across state lines. HR professionals are forced to rethink how they support both their people and their business strategy. Rising benefits costs, multi-state compliance, and talent retention pressures have converged to make HR one of the most critical and complex functions for small…

Read More
Leadership
Fighter Jets, Fintech, and the Frontier of AI: Mastering the Art of Adaptable Leadership with Gregory Gorman
October 27, 2025

In an era when artificial intelligence is reshaping entire industries and the pace of software innovation feels almost unmanageable, the question of leadership—what it looks like, how it adapts, and who embodies it—has never been more vital. The technology sector is confronting one of the fastest paradigm shifts in decades, and with that change comes…

Read More
retention
Employee Loyalty Starts with Culture: What the H. E. Butt Foundation Gets Right About Retention
October 27, 2025

Employee expectations have changed fast. The promise of remote work, the rise of burnout, and a sharper focus on well-being have all rewritten what people look for in a job. For HR leaders, that shift has made retention less about perks and more about purpose — about building workplaces that people actually want to stay…

Read More
direct primary care
Cutting Costs, Boosting Care: Why Employers Are Turning to Direct Primary Care for a Healthier, More Engaged Workforce
October 27, 2025

Rising healthcare costs continue to strain employers and employees alike — and with the average annual premium for family coverage nearing $27,000, benefits leaders are searching for new models that deliver both affordability and accessibility. At the same time, workplace well-being has expanded beyond basic coverage to include mental health, telemedicine, and preventive care,…

Read More