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July has become a heavy hitter in the retail calendar as retailers battle for consumers' attention and spending. Promotional activity during this month is incredibly high as the industry enters the back-to-school season and debut of pre-fall collections. However, one promotional event has long held the top spot in July, with its history pre-dating Prime Day and other retailer deal day events: The Nordstrom Anniversary Sale.
The Anniversary Sale’s premise is unique compared to other promotional events across the retail calendar; most items included in the event are exclusive to Nordstrom and typically the discounts are on new releases instead of previously released mark downs. The sale has become a signal of the changing of seasons as consumers prepare their fall wardrobes. Over the years, it has provided incredible insight into the psyche of the consumer and the impact of social media influencers on the retail industry.
The annual event has undergone some major changes over the last decade. Nordstrom was quick to embrace the power of social media influencers, and the Anniversary Sale gave influencers incredible opportunities to drive conversion from themselves and the retailer, and in return, receive high commissions. It wasn’t uncommon for user generated content to skyrocket with influencers posting hauls of their Anniversary Sale finds and deals. However, the commission structure has evolved over time, and the retailer has seemingly shifted its focus away from content creators as the primary driver of consumer engagement.
This year marked the longest public Anniversary Sale, which ran from July 12th through August 3rd. (Any consumer can shop at Nordstrom during the public Anniversary sale, but Nordstrom cardmembers usually have early access to the sale, and pre-sale lengths have fluctuated over the years). This year had 23 sale days, compared to 21 in 2023 & 2024, 17 in 2019 and 2022, and 12 in 2021, which may have been impacted by pandemic induced supply chain issues.
Looking at overall visitation for the event, traffic was up 17% compared to 2024 and 15% compared to 2023, but that does account for the two extra days of the sale. On a more comparable basis, the average visits per day of the 2025 Anniversary Sale were up 7% vs. 2024 and up 5% vs. 2023, respectively, highlighting that 2025 did bring a higher volume of average visitors per day, despite the longer sale period. But average visits per day during the sale were below 2019, 2021 and 2022 levels, when influencer marketing around the event was much higher than it is today.
Still, Nordstrom has regained its footing with many consumers over the past year, and that combined with consumers' desire for value across retail may have contributed to this year’s higher volume of visits compared to the past few years.
Another interesting outcome from this year? The percentage of visits during the weekend was higher in 2025 than all previous years reviewed. The public sale did start on a Saturday this year, which could have had an impact, but it also indicates that consumers might have been looking to the sale as an event to plan their shopping around, instead of a quick stop off during the week. Beginning the sale on Saturday may have moved the needle to drum up shopper excitement and incentivize visitors to shop on the first day of the event.
Consumers of all segments are increasing their appetite for value across the retail industry, and it appears that the Anniversary Sale was primed to welcome wealthy shoppers who wanted to score this year’s trends and designers at a lower price point. According to PersonaLive consumer segmentation, 2025 saw a higher distribution of visits from Ultra Wealthy Families & Wealth Suburban Families than the previous two sale events. There may have been fewer aspirational shoppers this year as well, concentrating visits with consumers who have higher levels of disposable income.
There was also an increase in the share of visits by older consumer segments at the expense of younger shoppers, which is interesting considering potential differences in consumer sentiment between generations and less emphasis on marketing the sale through social media.
Overall, the success of this year’s Anniversary Sale from a visitation perspective is encouraging, as many retailers contend with rising prices and waning consumer demand for discretionary goods. The strong visitation trends during the early back-to-school period highlight the brand value and positive consumer perception that the retailer has successfully cultivated in recent years. Nordstrom has found the formula to engage and retain shoppers, and it’s no wonder that we selected it as a Ten Top Brand to Watch for 2025.
Retailers have to be more creative to drive consumer activity in-store for the remainder of the year, but exclusivity might just be the key to success as evidenced by the Anniversary Sale performance.
To see up-to-date retail traffic trends, visit our free tools.
In June and July 2025, visits to Placer’s Industrial Manufacturing Composite Index grew 3.0% and 2.3% year over year (YoY), respectively, as supply chains raced against the clock to build inventory in advance of the new tariffs set to come into effect on August 7th. But as the deadline approached, YoY visits to these sites by employees and logistics partners began to decline, dropping to 4.2% YoY during the week of August 11th, 2025.
The timing of this decline, occurring just days after tariff implementation, points to manufacturers potentially working through stockpiled inventory and reassessing supply chain strategies under the new cost structure. While it's still early to determine whether this represents a temporary recalibration or the beginning of a more sustained slowdown, the data suggests that the manufacturing sector is entering a period of adjustment as businesses adapt to the new tariff environment.
Bath & Body Works emerged as a surprise retail winner in February 2025’s Placer 100 roundup, when overall visits to the chain jumped by 13.7% YoY in conjunction with its Disney-themed fragrance release. And the chain is maintaining its relevance in the face of declining discretionary spending and tighter consumer budgets through a multi-pronged approach, including store expansions, a TikTok presence, and partnerships with influencers.
Still, traffic to the chain reflects the impact of softened discretionary spending. Although overall traffic increased 3.5% in Q2 2025 compared to Q2 2024, thanks in part to the chain's strategic expansion, same-store visits for the quarter fell slightly, as seen in the chart below. But foot traffic rebounded dramatically in July, when its semi-annual sale sent same-store visits up by 12.7% and overall visits up by 17.5%, highlighting how compelling promotions – especially when consumer budgets are tight – can lead to foot traffic spikes.
Visit Placer.ai/anchor for the latest data-driven retail insights.
The beauty industry continues to flourish, with external factors like the rise of #BeautyTok, the influence of online creators, and a steady stream of new products driving interest. Within this landscape, Ulta (ULTA) has been driving strong sales, capitalizing on continued interest in beauty to fuel this growth.
Following major gains through the pandemic years and beyond, Ulta's visits have flattened slightly. In Q2 2025, overall visits to the chain grew by 1.4% year over year (YoY), likely thanks to store openings (Ulta opened 62 new stores between Q1 2024 and Q1 2025), as same-store visits declined by 1.1% in the same period.
Despite softer same-store foot traffic as seen in the chart below, Ulta delivered strong comp sales growth of 2.9% last quarter, driven by a 2.3% rise in average ticket size and a 10.0% increase in e-commerce sales. Now, the chain seems to be entering a new phase of its story, choosing to wind down its Target partnership in favor of its Ulta Beauty Unleashed growth plan.
As Ulta’s growth momentum slows, its decision not to renew its six-year partnership with Target may be a strategic move to direct traffic to its growing store fleet.
The partnership launched in 2021 with the goals of making prestige beauty more accessible to Target shoppers while helping Ulta "deepen loyalty with existing guests and introduce Ulta Beauty to new guests." And, at least for Ulta, the strategy seems to have worked – the share of Target shoppers also visiting Ulta stores has increased significantly since the launch, as seen in the chart below. This suggests that the Ulta shop-in-shops helped the chain acquire new customers through the brand exposure generated by the partnership.
But the data also suggests that the benefits to Ulta may be diminishing. Since 2023, the share of Target shoppers also visiting Ulta appears to have plateaued around 30%, indicating that the shop-in-shops are no longer driving meaningful traffic to stand-alone Ulta stores. Meanwhile, Ulta now has a larger store fleet than it did in 2021 (the company opened approximately 150 new stores between Q2 2021 and Q1 2025). This expansion likely also contributed to increased cross-visitation while reducing the partnership's value proposition, as beauty consumers now have more opportunities to visit standalone Ulta stores. With the partnership's customer acquisition benefits plateauing and Ulta's expanded footprint reducing reliance on Target's locations, ending the collaboration appears to be a logical step toward maximizing traffic to Ulta's own stores.
Now, both brands have new opportunities to focus on their relative strengths. For Ulta, that means building out its Ulta Beauty Unleashed program, which will see the brand focus on improving store operations, enhancing the digital experience, and moving into new markets. Meanwhile, incoming Target CEO Michael Fiddelke plans to take the company back to its roots, focusing on its own merchandise and using technology to improve efficiency.
As Ulta transitions away from its Target partnership and focuses on its Ulta Beauty Unleashed growth plan, the company is well-positioned to capitalize on expanding store operations, enhanced digital experiences, and entry into new markets.
For the latest data-driven retail insights, visit Placer.ai/anchor.
Dollar General and Dollar Tree have grown significantly in recent years, upending the competitive dynamics in the wider retail landscape. Can these chains continue to grow? Or are they beginning to reach their saturation point? We dove into the data to find out.
Dollar Tree recently completed the sale of the Family Dollar brand, allowing management to dedicate its efforts to "Dollar Tree's long-term growth, profitability and returns on capital."
The strategic refocus appears to be already paying off. As the chart below shows, year-over-year (YoY) overall and same-store visits to the chain have surged in recent months, indicating strong organic performance amplified by fleet expansion.
Meanwhile, Dollar General is also experiencing traffic growth – though momentum has cooled slightly. After posting a robust 12.2% visit increase between July 2023 and July 2024, growth has decelerated to 2.9% year-over-year in July 2025.
Still, although Dollar General's growth has slowed while Dollar Tree's growth has picked up, Dollar General remains the significantly larger chain. In H1 2025, 58.7% of combined visits to the two retailers went to Dollar General, compared to 41.3% of visits to Dollar Tree. And just because Dollar General's growth has slowed somewhat does not mean that the company has reached its saturation point.
Even though both chains have been growing for several years, geographic data reveals that domestic expansion opportunities for both retailers still exist.
The map below shows the share of combined visits to Dollar General and Dollar Tree going to each chain by DMA. Dollar Tree receives a majority of visits in the yellow DMAs, which are heavily concentrated in the Western United States. In contrast, Dollar General receives the majority of visits in the purple DMAs which cover most of the Midwest and South.
This distinct geographic segmentation indicates that rather than competing head-to-head, each chain has built regional strongholds – creating significant white space opportunities for cross-regional expansion. Dollar Tree's renewed focus and accelerating traffic position it well to build up its position in the South and Midwest – Dollar General's traditional markets. Conversely, Dollar General's established operational scale and proven rural market penetration strategy could drive significant growth for the chain in Dollar Tree's Western strongholds.
Dollar Tree’s sharpened focus and accelerating traffic growth signal strong long-term potential, while Dollar General’s scale ensures it remains a formidable player despite cooling momentum. With distinct geographic strongholds, both retailers still have significant white space for expansion – setting the stage for continued growth rather than saturation.
For the most up-to-date superstore visit data, check out Placer.ai's free tools.
Value-oriented retailers Ollie's Bargain Market (OLLI) and Five Below (FIVE) continue their impressive growth trajectory, with Q2 2025 visits surging 18.3% and 14.3% year-over-year, respectively.
Both chains are aggressively expanding their footprints – Ollie's acquired around 40 Big Lots leases and opened 25 of its projected 75 new stores by May 2025, while Five Below plans to add 150 locations this year after opening hundreds in 2024. Critically, the expansions are not coming at the expense of existing stores. Same-store visits grew 9.4% at Ollie's and 5.9% at Five Below, meaning individual locations are actually busier now than last year – despite the larger fleet size.
These positive traffic trends underscore the strong consumer appetite for value-oriented discretionary retail in today's economic environment and highlight the growth potential of the two chains.
Five Below and Ollie's positive visit trends demonstrate that growth doesn't have to be zero-sum. Rather than cannibalizing each other's traffic, both chains are successfully growing in parallel, as their increased store presence and busier locations expand the overall value-oriented discretionary retail market.
This growth can also be seen from the cross-visitation data in the chart below. H1 2025 saw the largest share of Ollie's shoppers visiting Five Below and the largest share of Five Below shoppers visiting Ollie's in recent years. (The cross-visitation from Ollie's to Five Below was likely significantly higher than the reverse due to Five Below's much larger physical footprint.)
This rising cross-visitation between the two chains validates the expanding market opportunity for value-oriented discretionary retail, as consumers increasingly embrace multiple value-oriented shopping destinations to meet their needs.
The strong performance of Five Below and Ollie's in Q2 2025 demonstrates the resilience and growth potential of the discount retail sector during challenging economic times.
Visit Placer.ai/anchor for the latest data-driven retail insights.
Malls have come a long way since their introduction to the world in the 1950s. These gleaming retail hubs promised shoppers a taste of the American dream, offering a third place for teens, families, and everyone in between to shop, socialize, and hang out.
And though malls have faced challenges in recent years, as e-commerce and pandemic-induced store closures led to shifts in consumer habits, the outlook is brightening. Malls have embraced innovation, incorporating enhanced entertainment, dining, and experiential offerings that attract a diverse range of visitors and redefine their purpose.
This white paper takes a look at the recent location intelligence metrics to gain an understanding of the changes taking place at malls across the country – including both indoor malls and open-air shopping centers. The report explores questions like: Why do malls experience foot traffic bumps during the summer months? How much of an impact do movie theaters have on mall visits, and what can mall operators learn from the Mall of America and American Dream malls’ focus on experiential entertainment?
Mall visitation is highly seasonal, with strikingly consistent monthly visitation patterns. Each year, visits decline somewhat in February, pick up in March, and begin to trend upward again in May – before peaking again in August. Then, after a slower September and October, foot traffic skyrockets during the holiday season, spiking dramatically in December.
And while these trends follow similar patterns every year, comparing monthly visits throughout 2019, 2023, and 2024 (YTD) to each year’s own January baseline shows that this seasonality is growing more pronounced - especially for indoor malls.
Following a lackluster 2023, visits to both indoor malls and open-air shopping centers peaked higher in March 2024 than in 2019. And this summer, indoor malls in particular saw a much larger visit boost than in previous years. In August 2024, for example, visits to indoor malls were 27.3% higher than in January 2024 – a substantially higher baseline jump than that seen either in August 2019 (17.0%) or in August 2023 (12.0%). And though open-air shopping centers experienced a smaller summer visit boost, they too saw a bigger bump this year than in 2019 or in 2023.
But malls aren’t just seeing larger visit spikes this year relative to their January baselines – they are also drawing bigger crowds than they did in 2023.
Between June and August 2024, indoor malls and open-air shopping centers both experienced year-over-year (YoY) visit growth. Indoor malls saw the largest YoY foot traffic boost (3.7%) – perhaps owing in part to 2024’s record-breaking heat, which led many patrons to seek refuge in air conditioned spaces. Still, open-air shopping centers, which feature plenty of air conditioned stores and restaurants, also enjoyed a YoY visit boost of 2.8% during the analyzed period.
Malls’ strong summer baseline and YoY foot traffic growth built upon the strong performance seen during most of 2024 so far, leading to the question: What is driving malls’ positive momentum? We delve into some of the factors propelling these changes below.
One offering that continues to play a significant role in driving foot traffic to malls is on-site movie theaters. Summer blockbuster releases, in particular, help attract crowds to theaters, in turn boosting overall visits to malls.
Much like malls, movie theaters have also proven their resilience over the past few years. While pundits fretted about the theater’s impending death, production houses were busy releasing blockbuster after blockbuster and shattering box-office records at an impressive clip. And while 2023 was certainly a banner year for blockbuster summer releases, 2024 has had its fair share of stunning box-office successes, leading to major visit boosts at theaters across the country.
Analyzing visits to malls with and without movie theaters highlights the impact of these summer Hollywood hits. Between June and August 2024, malls with theaters saw bigger visit boosts compared to a monthly year-to-date (YTD) average than malls without – an effect observed both for indoor malls and for open-air shopping centers.
For both mall types, the gap between centers with and without movie theaters was most pronounced in July 2024, likely owing to the release of Inside Out 2 in mid-June as well as the July releases of Deadpool & Wolverine and Twister. But in June and August 2024, too, centers with movie theaters sustained particularly impressive visit boosts – a solid sign that movie theaters and malls remain a winning combination.
Malls with movie theaters also drew higher shares of evening visits (7:00 PM - 10:00 PM) this summer than those without. Between June and August 2024, for example, evening outings accounted for 22.9% of visits to open-air shopping centers with movie theaters – compared to 18.2% of visits to centers without theaters. Indoor malls with theaters also saw a larger share of evening visits than those without – 18.1% compared to 15.0%.
This increase in evening traffic is likely driven by major summer movie releases and the flexibility of summer schedules, with many visitors – including families – taking advantage of late-night outings without the concern of early wakeup calls. These summer visitation trends benefit both theaters and malls, opening up opportunities for increased sales through concessions, promotions, and evening deals that attract a more relaxed and engaged crowd.
Analyzing the demographics of malls’ captured markets also reveals that centers with movie theaters are more likely to attract certain family-oriented segments than those without. (A mall’s captured market consists of the mall’s trade areas – the census block groups (CBGs) feeding visitors to the mall – weighted according to each CBG’s actual share of visits to the mall.)
Between June and August 2024, for example, 14.2% of the captured markets of open-air shopping centers with movie theaters were made up of “Wealthy Suburban Families” – compared to 9.7% for open-air shopping centers without theaters.
Indoor malls saw a similar pattern with regard to “Near-Urban Diverse Families”: Middle class families living in and around cities made up 9.0% of the captured markets of indoor malls with movie theaters, compared to 7.1% of the captured markets of those without.
This increase in foot traffic from middle-class and wealthy family segments can be a boon for malls and retail tenants – driving up food court profits and bolstering sales at stores with kid-friendly offerings.
Malls have long positioned themselves as destinations for summer entertainment as well as retail therapy, holding – in addition to back to school sales – events like Fourth of July celebrations and even indoor basketball and arena football games. And during the summer months, malls attract visitors from further away.
Between June and August 2024, indoor malls drew 18.2% of visitors from 30+ miles away – compared to just 16.7% during the first five months of the year. Similarly, open-air shopping centers drew 19.6% of visits from 30+ miles away during the summer, compared to 17.1% between January and May.
Extended daylight hours, summer trips away from home, and more free time are likely among the contributors to the summer draw for long-distance mall visitors. But in addition to their classic offerings – from movie theaters to stores and food courts – malls have also invested in other kinds of unique experiences to attract visitors. This next section takes a look at two mega-malls winning at the visitation game, to see what sets them apart.
The Minneapolis-based Mall of America opened in 1992, redefining the limits of what a mall could offer. The mall boasts hundreds of stores, games, rides, and more – and is constantly expanding its attractions, cementing its status as a top destination for retail and entertainment.
Between June and August 2024, Mall of America experienced a 13.8% YoY visit increase, far outperforming the 3.7% visit boost seen by the wider indoor mall space. And as a major tourist attraction – the mall hosted a series of Olympic-themed events throughout the summer – it also drew 41.6% of visits from 30+ miles away. This share of distant visitors was significantly higher than that seen at the mall during the first five months of 2024, and more than double the segment-wide summer average of 18.2%.
The Mall of America also seems to be attracting more upper-middle-class families during the summer than other indoor malls: Between June and August 2024, some 18.0% of Mall of America’s captured market consisted of “Upper Suburban Diverse Family Households” – a segment including upper-middle-class suburbanites – compared to just 11.1% for the wider indoor mall segment. The increased presence of these families at the Mall of America may be driven by the variety of events offered during the summer.
In 2019, the American Dream Mall in New Jersey opened and became the second-largest mall in the country. Since the mall opened its doors, it has also focused on blending retail and entertainment to draw in as wide a range of visitors as possible – and summer 2024 was no exception.
The mall hosted the Arena Football League Championship, ArenaBowl XXXIII, on Friday, July 19th. The event successfully attracted a higher share of visitors traveling from 30+ miles away compared to the average summer Friday – 35.4% compared to 25.7%.
Visits to the mall on the day of the championship were also 13.6% higher than the Friday visit average for the period between June and August 2024, showcasing the mall’s ability to draw in crowds by hosting major events.
Malls – both indoor and open-air – continue to evolve while playing a central role in the American retail landscape. Increasingly, malls are emerging as destinations for more than just shopping – especially during the summer – driving up foot traffic and attracting visitors from near and far. And while much is often said about the impact of holiday seasons on mall foot traffic, summer months offer another opportunity to boost mall visits. Malls that can curate experiences that resonate with their clientele can hope to see foot traffic growth – in the summer months and beyond.
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.
