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With Google and Uber joining the ever-growing ranks of companies tightening remote work policies, employees across industries are being forced to spend more time in the office. But how much are office visit patterns really changing on the ground? Did the resurgence observed in March 2025 continue into April, or was it merely a brief reprieve from the slump seen earlier this year?
April 2025 emerged as the third-busiest in-office month since COVID, outpaced only by October and July 2024. And visits to the Placer.ai Nationwide Office Index were down just 30.7% compared to April 2019 (pre-COVID) – an improvement over April 2024. The upswing is especially notable given that Easter fell in April this year, whereas last year it fell in March. Though the holiday itself takes place on Sunday, many employees celebrate the occasion with a long weekend.
April 2025’s strong performance suggests that despite setbacks in January and February, the office recovery is back on track, with further increases potentially ahead in the coming months.
A closer look at regional trends shows significant variation across major business hubs. New York City, long at the forefront of office recovery, nearly closed its post-pandemic office visit gap in April 2025, with visits just 5.5% below April 2019 levels. Miami also performed strongly, with visits down only 15.3%. Meanwhile, Atlanta and Dallas outperformed the national baseline (Dallas, just barely), while San Francisco once again took up the rear with Chicago.
Drilling down deeper into the data for office recovery leaders, New York and Miami highlights the continued influence of hybrid work on office visitation trends, even as numbers approach pre-pandemic levels.
Nationwide, office visits recovered most strongly mid-week. But this trend was especially pronounced in nearly-recovered NYC, where Tuesdays and Wednesdays were actually busier last month than they were during the same period of 2019 – and where Thursdays were essentially on par with April 2019 levels. Meanwhile, Fridays, and to a lesser extent Mondays, remained significantly below pre-COVID benchmarks. In Miami, too, it was midweek attendance that powered the office recovery – though Fridays rebounded more strongly in the Florida hub than in New York or nationwide.
Turning to year-over-year (YoY) trends, San Francisco once again led in YoY office visit growth – suggesting that accumulating RTO mandates in the city’s tech sector may be fueling substantial recovery. Boston was not far behind, with visits up 7.4% YoY. And while most other cities also posted YoY visit growth, a few hubs – including Houston and Los Angeles – saw modest declines.
April 2025 data from the Placer.ai Office Index indicates that the renewed office recovery momentum seen in March 2025 is continuing apace – though hybrid work remains in full force. What lies ahead for offices in the months to come?
Follow Placer.ai’s data-driven office recovery analyses to find out.
The Coachella Valley Music and Arts Festival, held annually at the Empire Polo Club in Indio, CA, recently wrapped up its 24th run. We dove into the location intelligence data to understand how the audience has changed in recent years and understand how the shift is impacting spending patterns at the festival.
Indio, CA is home to the Empire Polo Club, a thousand-acre event facility known for hosting many large-scale events throughout the year which attract numerous out-of-towners. One of the venue’s oldest annual events is the Coachella Valley Music and Arts Festivals (often referred to just as “Coachella”) that takes place over two consecutive three-day weekends in April and drives large visit spikes to Indio during its run.
Like many other live cultural events, Coachella was cancelled in 2020 and 2021 due to the ongoing COVID pandemic. And comparing the recent audience segmentation data for Empire Polo Club visitors during recent Coachella weekends to pre-pandemic trends suggests that the festival’s audience shifted slightly following its post-pandemic return.
In recent years (2023, 2024, and 2025), the share of family segments in the Empire Polo Club’s captured market has generally been higher than it was pre-pandemic, while the share of single audience segments decreased. Specifically, Spatial.ai’s segments of Near-Urban Diverse Families, Wealthy Suburban Families, and Melting Pot Families grew, while the share of Young Professionals fell. The share of Educated Urbanites in the Empire Polo Club’s captured market showed more variance, though it was also lower over the last two years (2024 and 2025) than it was in 2019.
The audience shift could suggest that Coachella is becoming more family-friendly, with some parents choosing to make a family trip out of the festival weekend. At the same time, the increase in family-oriented segments may also indicate that the audience base has shifted younger and that the festival now attracts more Gen Z attendees, many of whom still live at home.
The shift in audience also seems to have driven a change in spending patterns over Coachella weekend. Between 2019 and 2025, the data reveals a notable decrease in hotel & resort visits by Coachella attendees along with an increase in visits to major retail and dining categories, with the largest visit increase reserved for the most affordable segments.
Perhaps budget-conscious families and cash-strapped Gen-Zers living at home are foregoing the more expensive hotels and resorts in favor of more affordable accommodations such as Airbnbs or even camping on-site. To stretch their budgets even further, these attendees are favoring grocery stores, superstores, c-stores, and QSR as their preferred food options, driving significant visit increases to these categories.
At the same time, traffic to full-service restaurants and even apparel chains also grew somewhat in recent years – which could suggest a bifurcated spending pattern. While a significant portion of attendees prioritize affordability in lodging and everyday food, other segments with more disposable income are still willing to spend on sit-down dining and fashion purchases, perhaps viewing these as part of the overall festival experience.
Analyzing post-pandemic Coachella audiences reveals an increased presence of family segments, coupled with a notable gravitation towards budget-friendly spending – painting a picture of a potentially younger, more financially conscious attendee base. Simultaneously, the continued, albeit more moderate, growth in spending at full-service restaurants and apparel chains also indicates a persistent segment willing to invest in the broader festival experience. This dual trend underscores Coachella's success in balancing its appeal to both value-driven attendees and those seeking a more premium experience and suggests that the festival is continuing to maintain its relevance in 2025 – and beyond.
For more data-driven consumer insights, visit placer.ai/anchor.
Following a February slowdown, March 2025 mall data offered early signs of a rebound as indoor mall traffic increased and visit gaps at open-air shopping centers and outlet malls narrowed. Now, April data confirms the resurgence in mall activity, with YoY monthly visits up across all mall formats.
Some of the strength may be due to this year’s relatively late Easter, which fell in April (Easter 2024 took place in March) and may have led to a YoY increase in April 2025 as families utilized the holiday weekend for shopping and leisure. But diving deeper into the data suggests that the calendar shift is just one reason for this month’s strong visit numbers, which may also have been boosted by a pull-forward of consumer demand following the early April tariff announcement.
Looking at daily visits in April reveals that the Easter calendar shift had both a positive and negative impact on mall foot traffic. Visits were strong the week before Easter – particularly on Good Friday – as consumers bought gifts, shopped sales, and used their day off to visit mall-based dining and entertainment venues with friends and family. Outlet malls in particular received a significant boost with visits on April 18th (Good Friday) up 26.2% compared to the April 2025 Friday average – perhaps evidence of a more challenged consumer.
But visits to all three formats also dropped significantly on Easter Sunday, with visits to indoor malls, open-air shopping centers, and outlet malls down 59.4%, 33.3%, and 25.9%, respectively, compared to each format’s Sunday average in April 2025. So while Easter did drive a visit boost before the holiday, Sunday’s traffic drop may have balanced out any Easter-driven increase. Rather, the robust April performance likely reflects sustained consumer demand for mall experiences.
Weekly numbers also suggest that malls’ performance is not just due to an Easter bump. YoY weekly visits increased for all three formats during the last three full weeks of April, with indoor malls and open-air shopping centers receiving the largest boost the week after Easter – pointing to a broader trend of renewed consumer interest in mall-based activities.
The weekly numbers showing visit hikes following April 2nd also suggest that tariffs may already be impacting consumer behavior, with some shoppers likely beginning to stock up ahead of anticipated price increases and possible shortages.
Analyzing the average visit duration adds another layer of insights into malls’ April success.
Last month, the average visit duration increased for all three mall formats – so not only did malls receive more visits YoY, each visit also lasted longer, on average, than it did last year. This may suggest a larger combined basket size, with consumers spending more time in stores or visiting more mall-based retailers in a single trip. This highlights once again the resilience of the format and the ongoing consumer demand for mall-based retail, dining, and entertainment – and may offer another indication of the pull-forward of demand from certain consumers.
April 2025 mall data reveals a significant upswing in mall traffic across all formats along with an increase in average visit duration, demonstrating a recovery that extends beyond the influence of the Easter calendar shift. These positive trends reveal malls’ continued role as key destinations for shopping and leisure – even in times of economic headwinds – and could be pointing to a pull-forward of consumer demand in anticipation of retail uncertainty.
For more data-driven consumer insights, visit placer.ai/anchor.
As new retail construction slows, the trend of repurposing underperforming malls is accelerating, offering exciting opportunities to transform these properties into vibrant mixed-use developments. By blending retail, lifestyle, entertainment, and essential services, these redevelopments can better serve the evolving needs of today’s consumers. Class B malls offer significant potential for investors and retailers to unlock value while meeting the needs of local communities.
According to Green Street, there are 250 Class-B malls in the U.S., making up 28% of all U.S. malls. These properties are typically located in suburban or secondary markets and often feature a mid-tier tenant mix of national and regional retailers within a traditional enclosed mall format. According to Green Street data, A-rated malls boast an impressive 95% occupancy rate, while B malls sit at 89%. Meanwhile, occupancy drops significantly to 72% for C-rated malls and below.
B Malls face a number of challenges in addition to their higher vacancy rates, including lower sales per square foot, less desirable locations, outdated designs, and competition from newer lifestyle centers that offer a more dynamic mix of retail, dining, and entertainment.
Class-B malls, despite their challenges, offer a compelling opportunity for adaptive reuse. Often priced below their original value, these properties are ideal for redevelopment into community-centric hubs, featuring a mix of residential, retail, and public spaces. Reimagining these spaces not only allows investors and developers to achieve significant returns, but also fosters positive economic growth in local communities. For retailers, these revitalized spaces offer the chance to thrive in environments with increasing foot traffic and elevated customer engagement.
Hawthorn Mall, a premier two-story super-regional shopping center in Vernon Hills, Illinois, is one B Mall currently undergoing a significant transformation – and early data suggests that the revitalization efforts are already bearing fruit.
Owned by Centennial Real Estate, Hawthorn is strategically positioned at the intersection of Lake County’s key thoroughfares, offering exceptional convenience and accessibility. The center is anchored by major brands like AMC, Dave & Buster’s, JCPenney, and Macy’s, with a diverse mix of more than 60 retailers and restaurants, including Anthropologie, FP Movement, H&M, Lovesac, PGA Tour Superstore, Perry’s Steakhouse & Grille, and Pure Barre. Now, in the midst of redevelopment, Hawthorn is evolving into a vibrant mixed-use community, integrating luxury residential, expanded retail and dining, and pedestrian-friendly spaces.
Although the Hawthorn Mall redevelopment is still under way, visit quality to the mall has already improved – with the median visit duration rising from 54 minutes between April 2022 and March 2023 to 61 minutes between April 2024 and March 2025. The median household income in Hawthorn’s captured market has increased as well, perhaps thanks to the addition of a luxury apartment complex on the mall’s property. Lastly, the share of evenings visits also grew, suggesting that Hawthorn's revamped dining and entertainment are making it an increasingly popular evening destination for locals.
Class-B malls represent a unique opportunity to meet both market demands and community needs through thoughtful redevelopment. While challenges such as securing financing, navigating zoning and regulatory hurdles, and managing costs exist, the potential rewards are significant. Successful redevelopment requires targeted tenant curation, strategic location, and a bold, forward-thinking vision. With expansive footprints, prime access, and adaptability, Class-B malls are perfectly positioned to evolve into dynamic, mixed-use centers – redefining retail experiences and meeting the needs of modern consumers and communities.
Traffic to First Watch continues to climb as the company forges on with its expansion. Visits to the chain were 7.3% higher year-over-year (YoY) in Q1 2025 as visits per location held essentially steady (-0.8% YoY) – revealing that demand for the breakfast, brunch, and lunch dining concept remains robust despite the consumer headwinds.
And according to the latest monthly data, First Watch may be in even better shape than its already strong Q1 2024 visit numbers suggest. In April 2025, overall visits to the chain grew 10.5% YoY while visits per location increased by 3.0% – indicating that the morning and afternoon-focused dining brand likely still has more room to grow.
For more data-driven consumer analysis, visit placer.ai/anchor.
While Warby Parker and Allbirds both originated as direct-to-consumer brands, they have since firmly established themselves as brick-and-mortar retailers. Warby Parker, known for its quirky and affordable approach to eyecare, has around 270 stores in the United States, while Allbirds, which recently underwent a significant rightsizing process, currently operates 24 stores across the country.
We took a look at the visit data for the two retailers to explore how they are faring thus far in 2025.
Warby Parker continues to impress. The eyewear chain, which transitioned from an online-only model to physical stores in 2013, spent 2024 adding stores to its current fleet – and visit data highlights the positive impact of this expansion.
Q4 2024 and Q1 2025 visits to Warby Parker were 13.4% and 6.6% higher, respectively, than in Q4 2023 and Q1 2024. Average visits per location, too, showed growth in Q4 2024 (+4.9%), though they slowed slightly in Q1 2025. Still, Warby Parker’s ability to drive visit growth while keeping average visits per location stable suggests that its expansions are meeting with consistent demand.
Weekly visits from 2025 onward highlight the brands’ strong positioning, with YoY visit growth in most analyzed weeks. (The significant YoY visit decline during the weeks of March 31st and April 7th is likely due to the comparison with last year’s major eclipse-related promotion, during which the chain offered free solar eclipse glasses.)
Shoewear company Allbirds has been charting a new performance course over the last year. The chain, known for its sustainable approach to footwear, recently closed nearly a third of its U.S. fleet in an attempt to optimize its stateside operations. And this consolidation, which allows Allbirds to prioritize top-performing locations, has yielded promising results for the chain.
While YoY visits were down across all analyzed months – an anticipated outcome given the significant reduction in store count – average visits per location, a more relevant indicator of Allbirds’ performance, were up on a near-constant basis. In Q1 2025, visits declined by 35.8% YoY, but visits per location grew by 14.1%.
Monthly visits followed a similar pattern: while overall visits declined by 25.9% YoY in March 2025, visits per location were up by 23.8%. This positive trend continued into April 2025, with overall visits down by just 9.2% YoY and visits per location remaining elevated at 21.0%, suggesting a strengthened performance at the remaining Allbirds stores.
This focus on a more efficient store footprint seems to be paying off for Allbirds, allowing the chain to accurately target its most receptive audience while cutting out underperforming locations.
Warby Parker and Allbirds are performing well, highlighting the importance of remaining agile and pivoting to meet evolving consumer challenges.
Will the two retailers continue to thrive?
Visit Placer.ai to keep up with the latest data-driven retail news.
New York City is one of the world’s leading commercial centers – and Manhattan, home to some of the nation's most prominent corporations, is at its epicenter. Manhattan’s substantial in-office workforce has helped make New York a post-pandemic office recovery leader, outpacing most other major U.S. hubs. And the plethora of healthcare, service, and other on-site workers that keep the island humming along also contribute to its thriving employment landscape.
Using the latest location analytics, this report examines the shifting dynamics of the many on-site workers employed in Manhattan and the up-and-coming Hudson Yards neighborhood. Where does today’s Manhattan workforce come from? How often do on-site employees visit Hudson Yards? And how has the share of young professionals across Manhattan’s different districts shifted since the pandemic?
Read on to find out.
The rise in work-from-home (WFH) trends during the pandemic and the persistence of hybrid work have changed the face of commuting in Manhattan.
In Q2 2019, nearly 60% of employee visits to Manhattan originated off the island. But in Q2 2021, that share fell to just 43.9% – likely due to many commuters avoiding public transportation and practicing social distancing during COVID.
Since Q2 2022, however, the share of employee visits to Manhattan from outside the borough has rebounded – steadily approaching, but not yet reaching, pre-pandemic levels. By Q2 2024, 54.7% of employee visits to Manhattan originated from elsewhere – likely a reflection of the Big Apple’s accelerated RTO that is drawing in-office workers back into the city.
Unsurprisingly, some nearby boroughs – including Queens and the Bronx – have seen their share of Manhattan worker visits bounce back to what they were in 2019, while further-away areas of New York and New Jersey continue to lag behind. But Q2 2024 also saw an increase in the share of Manhattan workers commuting from other states – both compared to 2023 and compared to 2019 – perhaps reflecting the rise of super commuting.
Commuting into Manhattan is on the rise – but how often are employees making the trip? Diving into the data for employees based in Hudson Yards – Manhattan’s newest retail, office, and residential hub, which was officially opened to the public in March 2019 – reveals that the local workforce favors fewer in-person work days than in the past.
In August 2019, before the pandemic, 60.2% of Hudson Yards-based employees visited the neighborhood at least fifteen times. But by August 2021, the neighborhood’s share of near-full-time on-site workers had begun to drop – and it has declined ever since. In August 2024, only 22.6% of local workers visited the neighborhood 15+ times throughout the month. Meanwhile, the share of Hudson Yards-based employees making an appearance between five and nine times during the month emerged as the most common visit frequency by August 2022 – and has continued to increase since. In August 2024, 25.0% of employees visited the neighborhood less than five times a month, 32.5% visited between five and nine times, and 19.2% visited between 10 and 14 times.
Like other workers throughout Manhattan, Hudson Yards employees seem to have fully embraced the new hybrid normal – coming into the office between one and four times a week.
But not all employment centers in the Hudson Yards neighborhood see the same patterns of on-site work. Some of the newest office buildings in the area appear to attract employees more frequently and from further away than other properties.
Of the Hudson Yards properties analyzed, Two Manhattan West, which was completed this year, attracted the largest share of frequent, long-distance commuters in August 2024 (15.3%) – defined as employees visiting 10+ times per month from at least 30 miles away. And The Spiral, which opened last year, drew the second-largest share of such on-site workers (12.3%).
Employees in these skyscrapers may prioritize in-person work – or have been encouraged by their employers to return to the office – more than their counterparts in other Hudson Yards buildings. Employees may also choose to come in more frequently to enjoy these properties’ newer and more advanced amenities. And service and shift workers at these properties may also be coming in more frequently to support the buildings’ elevated occupancy.
Diving deeper into the segmentation of on-site employees in the Hudson Yards district provides further insight into this unique on-site workforce.
Analysis of POIs corresponding to several commercial and office hubs in the borough reveals that between August 2019 and August 2024, Hudson Yards’ captured market had the fastest-growing share of employees belonging to STI: Landscape's “Apprentices” segment, which encompasses young, highly-paid professionals in urban settings.
Companies looking to attract young talent have already noticed that these young professionals are receptive to Hudson Yards’ vibrant atmosphere and collaborative spaces, and describe this as a key factor in their choice to lease local offices.
Manhattan is a bastion of commerce, and its strong on-site workforce has helped lead the nation’s post-pandemic office recovery. But the dynamics of the many Manhattan-based workers continues to shift. And as new commercial and residential hubs emerge on the island, workplace trends and the characteristics of employees are almost certain to evolve with them.
The restaurant space has experienced its fair share of challenges in recent years – from pandemic-related closures to rising labor and ingredient costs. Despite these hurdles, the category is holding its own, with total 2024 spending projected to reach $1.1 trillion by the end of the year.
And an analysis of year-over-year (YoY) visitation trends to restaurants nationwide shows that consumers are frequenting dining establishments in growing numbers – despite food-away-from-home prices that remain stubbornly high.
Overall, monthly visits to restaurants were up nearly every month this year compared to the equivalent periods of 2023. Only in January, when inclement weather kept many consumers at home, did restaurants see a significant YoY drop. Throughout the rest of the analyzed period, YoY visits either held steady or grew – showing that Americans are finding room in their budgets to treat themselves to tasty, hassle-free meals.
Still, costs remain elevated and dining preferences have shifted, with consumers prioritizing value and convenience – and restaurants across segments are looking for ways to meet these changing needs. This white paper dives into the data to explore the trends impacting quick-service restaurants (QSR), full-service restaurants (FSR), and fast-casual dining venues – and strategies all three categories are using to stay ahead of the pack.
Overall, the dining sector has performed well in 2024, but a closer look at specific segments within the industry shows that fast-casual restaurants are outperforming both QSR and FSR chains.
Between January and August 2024, visits to fast-casual establishments were up 3.3% YoY, while QSR visits grew by just 0.7%, and FSR visits fell by 0.3% YoY. As eating out becomes more expensive, consumers are gravitating toward dining options that offer better perceived value without compromising on quality. Fast-casual chains, which balance affordability with higher-quality ingredients and experiences, have increasingly become the go-to choice for value-conscious diners.
Fast-casual restaurants also tend to attract a higher-income demographic. Between January and August 2024, fast-casual restaurants drew visitors from Census Block Groups (CBGs) with a weighted median household income of $78.2K – higher than the nationwide median of $76.1K. (The CBGs feeding visits to these restaurants, weighted to reflect the share of visits from each CBG, are collectively referred to as their captured market).
Perhaps unsurprisingly, quick-service restaurants drew visitors from much less affluent areas. But interestingly, despite their pricier offerings, full-service restaurants also drew visitors from CBGs with a median HHI below the nationwide baseline. While fast-casual restaurants likely attract office-goers and other routine diners that can afford to eat out on a more regular basis, FSR chains may serve as special occasion destinations for those with more moderate means.
Though QSR, FSR, and fast-casual spots all seek to provide strong value propositions, dining chains across segments have been forced to raise prices over the past year to offset rising food and labor costs. This next section takes a look at several chains that have succeeded in raising prices without sacrificing visit growth – to explore some of the strategies that have enabled them to thrive.
The fast-casual restaurant space attracts diners that are on the wealthier side – but some establishments cater to even higher earners. One chain of note is NYC-based burger chain Shake Shack, which features a captured market median HHI of $94.3K. In comparison, the typical fast-casual diner comes from areas with a median HHI of $78.2K.
Shake Shack emphasizes high-quality ingredients and prices its offerings accordingly. The chain, which has been expanding its footprint, strategically places its locations in affluent, upscale, and high-traffic neighborhoods – driving foot traffic that consistently surpasses other fast-casual chains. And this elevated foot traffic has continued to impress, even as Shake Shack has raised its prices by 2.5% over the past year.
Steakhouse chain Texas Roadhouse has enjoyed a positive few years, weathering the pandemic with aplomb before moving into an expansion phase. And this year, the chain ranked in the top five for service, food quality, and overall experience by the 2024 Datassential Top 500 Restaurant Chain.
Like Shake Shack, Texas Roadhouse has raised its prices over the past year – three times – while maintaining impressive visit metrics. Between January and August 2024, foot traffic to the steakhouse grew by 9.7% YoY, outpacing visits to the overall FSR segment by wide margins.
This foot traffic growth is fueled not only by expansion but also by the chain's ability to draw traffic during quieter dayparts like weekday afternoons, while at the same time capitalizing on high-traffic times like weekends. Some 27.7% of weekday visits to Texas Roadhouse take place between 3:00 PM and 6:00 PM – compared to just 18.9% for the broader FSR segment – thanks to the chain’s happy hour offerings early dining specials. And 43.3% of visits to the popular steakhouse take place on Saturdays and Sundays, when many diners are increasingly choosing to splurge on restaurant meals, compared to 38.4% for the wider category.
Though rising costs have been on everybody’s minds, summer 2024 may be best remembered as the summer of value – with many quick-service restaurants seeking to counter higher prices by embracing Limited-Time Offers (LTOs). These LTOs offered diners the opportunity to save at the register and get more bang for their buck – while boosting visits at QSR chains across the country.
Limited time offers such as discounted meals and combo offers can encourage frequent visits, and Hardee’s $5.99 "Original Bag" combo, launched in August 2024, did just that. The combo allowed diners to mix and match popular items like the Double Cheeseburger and Hand-Breaded Chicken Tender Wraps, offering both variety and affordability. And visits to the chain during the month of August 2024 were 4.9% higher than Hardee’s year-to-date (YTD) monthly visit average.
August’s LTO also drove up Hardee’s already-impressive loyalty rates. Between May and July 2024, 40.1% to 43.4% of visits came from customers who visited Hardee’s at least three times during the month, likely encouraged by Hardee’s top-ranking loyalty program. But in August, Hardee’s share of loyal visits jumped to 51.5%, highlighting just how receptive many diners are to eating out – as long as they feel they are getting their money’s worth.
McDonald’s launched its own limited-time offer in late June 2024, aimed at providing value to budget-conscious consumers. And the LTO – McDonald’s foray into this summer’s QSR value wars – was such a resounding success that the fast-food leader decided to extend the deal into December.
McDonald’s LTO drove foot traffic to restaurants nationwide. But a closer look at the chain’s regional captured markets shows that the offer resonated particularly well with “Young Urban Singles” – a segment group defined by Spatial.ai's PersonaLive dataset as young singles beginning their careers in trade jobs. McDonald's locations in states where the captured market shares of this demographic surpassed statewide averages by wider margins saw bigger visit boosts in July 2024 – and the correlation was a strong one.
For example, the share of “Young Urban Singles” in McDonald’s Massachusetts captured market was 56.0% higher than the Massachusetts statewide baseline – and the chain saw a 10.6% visit boost in July 2024, compared to the chain's statewide H1 2024 monthly average. But in Florida, where McDonald’s captured markets were over-indexed for “Young Urban Singles” by just 13% compared to the statewide average, foot traffic jumped in July 2024 by a relatively modest 7.3%.
These young, price-conscious consumers, who are receptive to spending their discretionary income on dining out, are not the sole driver of McDonald’s LTO foot traffic success. Still, the promotion’s outsize performance in areas where McDonald’s attracts higher-than-average shares of Young Urban Singles shows that the offering was well-tailored to meet the particular needs and preferences of this key demographic.
While QSR, fast-casual, and FSR chains have largely boosted foot traffic through deals and specials, reputation is another powerful way to attract diners. Restaurants that earn a coveted Michelin Star often see a surge in visits, as was the case for Causa – a Peruvian dining destination in Washington, D.C. The restaurant received its first Michelin Star in November 2023, a major milestone for Chef Carlos Delgado.
The Michelin Star elevated the restaurant's profile, drawing in affluent diners who prioritize exclusivity and are less sensitive to price increases. Since the award, Causa saw its share of the "Power Elite" segment group in its captured market increase from 24.7% to 26.6%. Diners were also more willing to travel for the opportunity to partake in the Causa experience: In the six months following the award, some 40.3% of visitors to the restaurant came from more than ten miles away, compared to just 30.3% in the six months prior.
These data points highlight the power of a Michelin Star to increase a restaurant’s draw and attract more affluent audiences – allowing it to raise prices without losing its core clientele. Wealthier diners often seek unique culinary experiences, where price is less of a concern, making these establishments more resilient to inflation than more venues that serve more price-sensitive customers.
Dining preferences continue to evolve as restaurants adapt to a rapidly changing culinary landscape. From the rise in fast-casual dining to the benefits of limited-time offers, the analyzed restaurant categories are determining how to best reach their target audiences. By staying up-to-date with what people are eating, these restaurant categories can hope to continue bringing customers through the door.
The COVID-19 pandemic – and the subsequent shift to remote work – has fundamentally redefined where and how people live and work, creating new opportunities for smaller cities to thrive.
But where are relocators going in 2024 – and what are they looking for? This post dives into the data for several CBSAs with populations ranging from 500K to 2.5 million that have seen positive net domestic migration over the past several years – where population inflow outpaces outflow. Who is moving to these hubs, and what is drawing them?
The past few years have seen a shift in where people are moving. While major metropolitan areas like New York still attract newcomers, smaller cities, which offer a balance of affordability, livability, and career opportunities, are becoming attractive alternatives for those looking to relocate.
Between July 2020 and July 2024, for example, the Austin-Round Rock-Georgetown, TX CBSA, saw net domestic migration of 3.6% – not surprising, given the city of Austin’s ranking among U.S. News and World Report’s top places to live in 2024-5. Raleigh-Cary, NC, which also made the list, experienced net population inflow of 2.6%. And other metro areas, including Fayetteville-Springdale-Rogers, AR (3.3%), Des Moines-West Des Moines, IA (1.4%), Oklahoma City, OK (1.1%), and Madison, WI (0.6%) have seen more domestic relocators moving in than out over the past four years.
All of these CBSAs have also continued to see positive net migration over the past 12 months – highlighting their continued appeal into 2024.
What is driving domestic migration to these hubs? While these metropolitan areas span various regions of the country, they share a common characteristic: They all attract residents coming, on average, from CBSAs with younger and less affluent populations.
Between July 2020 and July 2024, for example, relocators to high-income Raleigh, NC – where the median household income (HHI) stands at $84K – tended to hail from CBSAs with a significantly lower weighted median HHI ($66.9K). Similarly, those moving to Austin, TX – where the median HHI is $85.4K – tended to come from regions with a median HHI of $69.9K. This pattern suggests that these cities offer newcomers an aspirational leap in both career and financial prospects.
Moreover, most of these CBSAs are drawing residents with a younger weighted median age than that of their existing residents, reinforcing their appeal as destinations for those still establishing and growing their careers. Des Moines and Oklahoma City, in particular, saw the largest gaps between the median age of newcomers and that of the existing population.
Career opportunities and affordable housing are major drivers of migration, and data from Niche’s Neighborhood Grades suggests that these CBSAs attract newcomers due to their strong performance in both areas. All of the analyzed CBSAs had better "Jobs" and "Housing" grades compared to the regions from which people migrated. For example, Austin, Texas received the highest "Jobs" rating with an A-, while most new arrivals came from areas where the "Jobs" grade was a B.
While the other analyzed CBSAs showed smaller improvements in job ratings, the combination of improvements in both “Jobs” and “Housing” make them appealing destinations for those seeking better economic opportunities and affordability.
Young professionals may be more open than ever to living in smaller metro areas, offering opportunities for cities like Austin and Raleigh to thrive. And the demographic analysis of newcomers to these CBSAs underscores their appeal to individuals seeking job opportunities and upward mobility.
Will these CBSAs continue to attract newcomers and cement their status as vibrant, opportunity-rich hubs for young professionals? And how will this new mix of population impact these growing markets?
Visit Placer.ai to keep up with the latest data-driven civic news.
