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CAVA started the year off strong with double-digit traffic increases between January and April 2025, but growth slowed down slightly towards the end of H1. Still, the chain capped off the quarter with a 8.7% YoY overall boost in visits in Q2 2025 while visits per location held essentially steady at -1.0% – suggesting that CAVA's expansion is not cannibalizing traffic from its existing venues.
Sweetgreen experienced similar traffic patterns, with overall visits up 8.6% YoY in Q2 2025 and a visit gap of 3.1% – a somewhat larger dip than CAVA's visits per location decline, though still a manageable figure for a brand in a heavy expansion phase.
While CAVA and sweetgreen share a lot of similarities, analyzing the YoY change in Q2 2025 visits by DMA highlights their different expansion philosophies. CAVA's strategy seems focused on market depth, where entry into new markets is part of a broader strategy of establishing and strengthening regional clusters. In contrast, sweetgreen's approach seems to prioritize nationwide breadth – a strategy underscored by its plans to enter three distinct geographically separate markets in 2025.
The map reflects the impact of these distinct strategies: In Q2 2025, CAVA's YoY visit growth is mostly concentrated in distinct geographic clusters, while sweetgreen's gains are more geographically dispersed across the country's major metropolitan areas.
The Q2 2025 visit growth of CAVA and sweetgreen demonstrates that multiple viable paths exist for scaling a premium fast-casual brand. While both approaches are currently driving significant overall growth, the crucial test ahead will be which strategy can better maintain store-level profitability and brand loyalty as they continue to scale.
For more data-driven dining insights, visit placer.ai/anchor
Quick-service restaurants (QSRs) have had to work hard to stay competitive in 2025, contending with inflationary pressures, cautious consumer spending, and a wave of value-focused dining alternatives.
So with the year now more than halfway through, we analyzed location analytics for leading QSR players Yum! Brands, RBI, and Wendy’s to see which chains defied expectations in Q2 2025 – and how they managed to remain ahead of the curve.
Rising costs and growing competition have eroded fast food’s once-formidable value advantage. Convenience and grocery stores now offer more substantial dining options, giving budget-conscious consumers more reasons to look beyond traditional QSRs. Meanwhile, fast-casual brands and even some full-service restaurants (like Chili’s) have introduced more elevated dining experiences at price points close to fast-food levels.
Despite these challenges, Yum! Brands and RBI have remained resilient. Yum! Brands posted modest year-over-year (YoY) traffic growth in Q2 2025 – while RBI, whose domestic footprint contracted somewhat, saw a narrowing YoY visit gap. But both chains maintained average visits per location near last year’s levels, underscoring their ability to navigate a persistently tough environment.
What’s behind RBI’s narrowing visit gap?
Popeyes emerged as a bright spot in Q2 2025, with overall foot traffic rising by 0.6% despite a reduced domestic store count – and average visits per location climbing 2.2%. This marks a notable improvement from Q1, when traffic was down 3.2%. The chicken chain’s blend of innovation and value – from new chicken wing flavors in late 2024 and early 2025 to limited-time offers (LTOs) like the $6 Big Box – appears to be winning over diners.
Burger King, RBI’s most-visited chain, also contributed to the company’s improved traffic. The brand narrowed its YoY visit gap from 3.4% in Q1 to 2.1% in Q2, thanks in part to expanded value deals and timely tie-ins such as a How to Train Your Dragon-themed meal. Meanwhile, average visits per location at Burger King nearly matched 2024 levels, with the gap shrinking from 2.0% in Q1 to 0.2% in Q2.
Yum! Brands’ primary growth engine has been Taco Bell – by far the company’s largest U.S. banner. By frequently introducing new menu items while keeping an eye on affordability – through offerings like the expanded Luxe Cravings Box – Taco Bell has sustained its reputation as a top-value treat. And building on a strong Q1, the Mexican QSR giant saw overall foot traffic climb by 2.6% YoY in Q2, with average visits per location growing by 1.5% YoY.
Elsewhere in Yum!’s portfolio, KFC and Pizza Hut posted YoY visit gaps in Q2. Still, the two brands’ average-visit-per-location gaps remained modest, indicating that consumer demand remains healthy at existing stores despite some closures.
Wendy’s is another QSR relying on value deals and menu expansions to weather the sector’s choppy waters. After two years of steady YoY same-store sales growth in the U.S., Wendy’s recorded a 2.8% comp sales decline in Q1 2025, mirrored by a 3.4% dip in average visits per location.
But Wendy’s isn’t sitting still. In March, it updated its Frostys menu, followed in April by a crowd-pleasing Cajun Crunch Spicy Chicken Sandwich. Alongside its existing value menu, Wendy’s is also leveraging special promotions this summer – from free Frostys on July 20th (National Ice Cream Day) and free fries every “Fryday” to an upcoming “Meal of Misfortune” tied to the latest season of Netflix’s Wednesday. And though visits in Q2 2025 still trailed 2024 levels, Wendy’s consistently narrowing visit gap points to a potentially brighter outlook as the year progresses.
To succeed in 2025, QSRs must excel at both menu innovation and value – no easy feat – giving today’s savvy and budget-conscious consumers a compelling reason to spend. And though 2025 promises more headwinds, chains that effectively strike this balance may be well-positioned to thrive.
Follow Placer.ai/anchor for more data-driven dining insights.
Kohl’s emergence as a hot new meme stock wasn’t on anyone’s bingo card for 2025. The retailer has grappled with declining sales and ongoing leadership challenges, driving a steep drop in its share price over the past several years. But beyond the internet buzz, is there any real reason for optimism about Kohl’s outlook?
Despite recent setbacks, Kohl’s surprised investors in Q1 2025 with a smaller-than-expected 3.9% year-over-year (YoY) drop in comparable sales – fueling speculation that a turnaround might be in the works. The company’s foot traffic gap also narrowed to just 2.7% YoY in Q1, a notable improvement from the 6.0% gap in Q4 2024. In Q2 2025, too, Kohl’s visit-per-location gap remained relatively modest at 3.1%. But monthly YoY data showed substantial volatility, with June experiencing a sharp decline while March through May visits per location held close to last year’s levels.
All in all, Kohl’s clearly has a long way to go to reclaim its former glory – and it’s too soon to tell whether a comeback is indeed in the cards. But with the right strategy, the data does point to some underlying strength that may help the company regain its footing – meme stock or not.
For more data-driven retail analyses, follow Placer.ai/anchor.
Pharmacies have weathered a challenging landscape in recent years, marked by shrinking drug margins, rising costs, and heightened competition from online retailers. Major industry leaders have had to rethink their strategies in response.
So with CVS Health set to report earnings later this month, we dove into the data to see how visits to the company’s eponymous pharmacy chain fared in Q2 2025. How have CVS’s rightsizing and optimization efforts impacted visitation? And what can location analytics reveal about some of the strategies that may drive further growth for the chain?
We dove into the data to find out.
CVS Pharmacy began 2025 on a high note. Despite hundreds of recent store closures, the chain posted steady year-over-year (YoY) visit growth throughout the first half of 2025, with only February seeing a slight dip due to the leap-year comparison.
In the first quarter of the year, CVS Health’s Pharmacy and Consumer Wellness segment reported an 11.1% jump in revenue – driven in part by a 6.7% rise in same-store prescription volume. This growth was reflected in the chain’s solid Q1 visit numbers – a momentum sustained into Q2 2025, when overall foot traffic rose 2.2% YoY and average visits per location saw an even more impressive 5.0% increase.
CVS's strong visit numbers appear to underscore the success of its rightsizing efforts, which have largely focused on optimizing the pharmacy and healthcare side of the business. In addition to closing hundreds of stores, CVS plans to open several smaller-format, pharmacy-first locations – as well as featuring limited over-the-counter offerings. The drugstore leader is also set to absorb prescription files from 625 closing Rite Aid locations, in addition to acquiring 64 of its physical stores.
CVS's pharmacy-focused strategy comes amid softening demand for its front store business – including items like cosmetics, candy, greeting cards, and other over-the-counter products – which saw a 2.4% revenue decline in Q1 2025. Yet location analytics show that these non-medical offerings remain an important traffic driver for CVS – especially during key retail milestones.
In the first half of 2025, for example, Valentine’s Day (February 14th) was CVS's busiest day of the year to date, registering a 39.2% surge in visits compared to the chain’s year-to-date (YTD) daily average and a 26.3% boost compared to an average Friday. Other holidays, including Mother’s Day and Father’s Day, sparked smaller but still significant upticks, as shoppers stopped by for gifts and cards.
CVS’s 2025 visit numbers suggest the chain is adeptly navigating pharmacy’s choppy waters – staying nimble and capitalizing on opportunities as they arise. Will the pharmacy leader continue to thrive in the months ahead?
Follow Placer.ai/anchor to find out.
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In my last column for The Anchor, I debuted a new quarterly series, entitled “All The Things I Think I Think About Retail Over The Last Quarter.”
Well, another quarter has come and gone, so that means it is time to dust off the shelves and scorecard past predictions as well as to signal what is most top of mind at present.
So, first, the scorecard. Loyal readers of my first column will remember these predictions:
It has only been three months since I put a stake in the ground on all of them, but on the “Nailed It/Too Early To Tell/Dead Wrong” scale, I am feeling pretty darn good about most of the above.
It is way too early to tell on Macy’s, Bloomie’s, and Wayfair. Same goes for Sam’s Club and Sprouts. And, as much as I would like to take a victory lap on these last two especially, the proof will be in the pudding much more down the road. Though I still am feeling like all six will break my way soon.
Finally, I would be remiss if I didn’t mention Kohl’s. Kohl’s is such a dumpster fire (meme stock, anyone?) that the very same above prediction is also likely in play for whomever gets chosen as Ashley Buchanan’s ultimate successor.
All of which leads me to…
Over the last quarter, Costco and Target have been a tale of two retailers. One stood strong on DEI, while the other kowtowed to public pressure. Both companies stated their contrasting positions publicly this past January, and the traffic results speak for themselves..
Costco has emerged unscathed, as predicted, while Target now faces concerns that it could become the next Kmart or Sears (and for a whole host of reasons beyond DEI).
The biggest takeaway for me, however?
No matter your personal opinions on DEI, the most important thing retail executives have to ask themselves is, “What matters most to our brand?”
Target and Brian Cornell forgot this one important question. They didn’t do their homework, and thereby took their fingers off the pulse of the Target customer, and clearly the customer has been voting with his or her feet.
It will likely take a regime change with a clear stated purpose to get them back.
I missed on Starbucks, and, frankly, I am kind of pissed about it. I was thrilled when Starbucks’ new CEO Brian Niccol announced his intentions to enliven the in-store Starbucks experience. His promise of “4 Minutes or Less” wait times and his introduction of ceramic mugs had me at Frappuccino.
But then something interesting happened on the way to the coffee roaster.
First, few, if any, baristas have ever offered me a ceramic mug at checkout. Plus, the experience of drinking my coffee in said ceramic mug actually adds more friction to the overall Starbucks’ experience because you still have to go back and wait in line to take your coffee to go.
Second, the wait time promise has also fallen flat. When Niccol first made the announcement, I would go into Starbucks, order at the counter, track the wait time on my phone, and, without fail, get served my coffee in under four minutes. I even proudly shared my improved wait time experiences on social media.
I bought into Brian Niccol’s java-flavored Kool-Aid hook, line, and sinker, but, as much it pains me to admit it, I also forgot one important axiom of retailing – never judge anything out-of-the-gate (which, side note, is also why, in contrast, I have not jumped on the Richard Dickson at Gap Inc. bandwagon yet, too).
Any initial promise for Starbucks in Q1 was quickly overshadowed by Starbucks’ Q2 results. Starbucks same-store sales fell for the fifth straight quarter, with U.S. same-store sales down 2%.
Shame on me. I should have known better.
When running stores, it is easy to get store teams behind anything for a short period of time. I simply made the call too early and now worry the pendulum may be swinging back entirely. Part and parcel, people appear to be spending less time, not more time, in Starbucks since the regime change, which doesn’t bode well.
Any Kool-Aid drinking, whether it be for Niccol, for Dickson, or, as Target CEO Brian Cornell has received during his tenure, should always be reserved until one is sure that results are sustainable.
For more data-driven retail insights, visit placer.ai/anchor
The coffee space has become increasingly competitive in recent years. And while traffic to the segment is up, the growth of small and medium sized chains may be coming at the expense of Starbucks. Visits to the reigning coffee giant were down slightly (0.1%) YoY in Q2 2025 while average visits per location declined 4.2% in the same period.
Still, these trends mark an improvement compared to last quarter, when YoY visits and average visits per venue were down 0.9% and 5.4%, respectively – suggesting that the company's "Back to Starbucks" strategy and recent menu innovations are beginning to drive a turnaround.
Meanwhile, Dunkin' – the second-largest coffee chain in the country – is seeing modest growth, with overall visits and average visits per venue up 1.7% and 0.3% YoY, respectively, in Q2 2025. Like Starbucks, Dunkin' showed improvement in Q2 2025 compared to Q1 2025 – perhaps an early sign of strengthening consumer confidence.
But while broader market forces may have helped, Dunkin's Q2 2025 turnaround may also be attributed to the chain's promotional efforts – including a new ad campaign to promote the chain's $6 Meal Deals. As value continues to drive consumer decision-making, Dunkin's emphasis on affordable bundles positions it well to maintain its visit share despite the growing competition in the space.
Dutch Bros, one of the fastest growing coffee brands in recent years, maintained its momentum in Q2 2025, as coffee chains betting on small-format, largely drive-thru locations – including 7Brew, PJ's Coffee, Biggby, and Foxtail – continue to resonate with consumers.
Overall visits to the Oregon-based chain grew 13.8% YoY alongside a 0.8% increase in average visits per venue – indicating that the chain's ongoing expansion is not cannibalizing traffic from existing venues. This bodes well for the brand as it continues its aggressive expansion – 2,029 stores by 2029.
As we look to the second half of 2025, the coffee sector will be characterized by the distinct strategies of its key players. Dutch Bros' aggressive expansion will continue to challenge the incumbents on a local level, while Dunkin's focus on value will likely remain a key advantage with budget-conscious consumers. The ultimate test will be for Starbucks, as the industry leader's ability to translate its strategic innovations into sustained visit growth will determine its capacity to defend its market share.
For more data-driven dining insights, visit placer.ai/anchor.
The pandemic and economic headwinds that marked the past few years presented the multi-billion dollar hotel industry with significant challenges. But five years later, the industry is rallying – and some hotel segments are showing significant growth.
This white paper delves into location analytics across six major hotel categories – Luxury Hotels, Upper Upscale Hotels, Upscale Hotels, Upper Midscale Hotels, Midscale Hotels, and Economy Hotels – to explore the current state of the American hospitality market. The report examines changes in guest behavior, personas, and characteristics and looks at factors driving current visitation trends.
Overall, visits to hotels were 4.3% lower in Q2 2024 than in Q2 2019 (pre-pandemic). But this metric only tells part of the story. A deeper dive into the data shows that each hotel tier has been on a more nuanced recovery trajectory.
Economy chains – those offering the most basic accommodations at the lowest prices – saw visits down 24.6% in Q2 2024 compared to pre-pandemic – likely due in part to hotel closures that have plagued the tier in recent years. Though these chains were initially less impacted by the pandemic, they were dealt a significant blow by inflation – and have seen visits decline over the past three years. As hotels that cater to the most price-sensitive guests, these chains are particularly vulnerable to rising costs, and the first to suffer when consumer confidence takes a hit.
Luxury Hotels, on the other hand, have seen accelerated visit growth over the past year – and have succeeded in closing their pre-pandemic visit gap. Upscale chains, too, saw Q2 2024 visits on par with Q2 2019 levels. As tiers that serve wealthier guests with more disposable income, Luxury and Upscale Hotels are continuing to thrive in the face of headwinds.
But it is the Upper Midscale level – a tier that includes brands like Trademark Collection by Wyndham, Fairfield by Marriott, Holiday Inn Express by IHG Hotels & Resorts, and Hampton by Hilton – that has experienced the most robust visit growth compared to pre-pandemic. In Q2 2024, Upper Midscale Hotels drew 3.5% more visits than in Q2 2019. And during last year’s peak season (Q3 2023), Upper Midscale hotels saw the biggest visit boost of any analyzed tier.
As mid-range hotels that still offer a broad range of amenities, Upper Midscale chains strike a balance between indulgence and affordability. And perhaps unsurprisingly, hotel operators have been investing in this tier: In Q4 2023, Upper Midscale Hotels had the highest project count of any tier in the U.S. hotel construction and renovation pipeline.
The shift in favor of Upper Midscale Hotels and away from Economy chains is also evident when analyzing changes in relative visit share among the six hotel categories.
Upper Midscale hotels have always been major players: In H1 2019 they drew 28.7% of overall hotel visits – the most of any tier. But by H1 2024, their share of visits increased to 31.2%. Upscale Hotels – the second-largest tier – also saw their visit share increase, from 24.8% to 26.1%.
Meanwhile, Economy, Midscale, and Upper Upscale Hotels saw drops in visit share – with Economy chains, unsurprisingly, seeing the biggest decline. Luxury Hotels, for their parts, held firmly onto their piece of the pie, drawing 2.8% of visits in H1 2024.
Who are the visitors fueling the Upper Midscale visit revival? This next section explores shifts in visitor demographics to four Upper Midscale chains that are outperforming pre-pandemic visit levels: Trademark Collection by Wyndham, Holiday Inn Express by IHG Hotels & Resorts, Fairfield by Marriott, and Hampton by Hilton.
Analyzing the captured markets* of the four chains with demographics from STI: Popstats (2023) shows variance in the relative affluence of their visitor bases.
Fairfield by Marriott drew visitors from areas with a median household income (HHI) of $84.0K in H1 2024, well above the nationwide average of $76.1K. Hampton by Hilton and Trademark Collection by Wyndham, for their parts, drew guests from areas with respective HHIs of $79.6K and $78.5K – just above the nationwide average. Meanwhile, Holiday Inn Express by IHG Hotels & Resorts drew visitors from areas below the nationwide average.
But all four brands saw increases in the median HHIs of their captured markets over the past five years. This provides a further indication that it is wealthier consumers – those who have had to cut back less in the face of inflation – who are driving hotel recovery in 2024.
(*A chain’s captured market is obtained by weighting each Census Block Group (CBG) in its trade area according to the CBG’s share of visits to the chain – and so reflects the population that actually visits the chain in practice.)
Much of the Upper Midscale visit growth is being driven by chain expansion. But in some areas of the country, the average number of visits to individual hotel locations is also on the rise – highlighting especially robust growth potential.
Analyzing visits to existing Upper Midscale chains in four metropolitan areas with booming tourism industries – Salt Lake City, UT, Palm Bay, FL, San Diego, CA, and Richmond, VA – shows that these markets feature robust untapped demand.
Utah, for example, has emerged as a tourist hotspot in recent years – with millions of visitors flocking each year to local destinations like Salt Lake City to see the sights and take in the great outdoors. And Upper Midscale hotels in the region are reaping the benefits. In H1 2024, the overall number of visits to Upper Midscale chains in Salt Lake City was 69.4% higher than in H1 2019. Though some of this increase can be attributed to local chain expansion, the average number of visits to each individual Upper Midscale location in the area also rose by 12.5% over the same period.
Palm Bay, FL (the Space Coast) – another tourist favorite – is experiencing a similar trend. Between H1 2019 and H1 2024, overall visits to local Upper Midscale hotel chains grew by 36.4% – while the average number of visits per location increased a substantial 16.9%. Given this strong demand, it may come as no surprise that the area is undergoing a hotel construction boom. Upper Midscale hotels in other areas with flourishing tourism sectors, like San Diego, CA and Richmond, VA, are seeing similar trends, with increases in both overall visits and and in the average number of visits per location.
Though Economy chains have underperformed versus other categories in recent years, the tier does feature some bright spots. Some extended-stay brands in the Economy tier – hotels with perks and amenities that cater to the needs of longer-stay travelers – are succeeding despite category headwinds.
Choice Hotels’ portfolio, for example, includes WoodSpring Suites, an Economy chain offering affordable extended-stay accommodations in 35 states. In H1 2024, the chain drew 7.7% more visits than in the first half of 2019 – even as the wider Economy sector continued to languish. InTown Suites, another Economy extended stay chain, saw visits increase by 8.9% over the same period.
And location intelligence shows that the success of these two chains is likely being driven, in part, by their growing appeal to young, well-educated professionals. In H1 2019, households belonging to Spatial.ai: PersonaLive’s “Young Professionals” segment made up 9.6% of WoodSpring Suites’ captured market. But by H1 2024, the share of this group jumped dramatically to 13.3%. At the same time, InTown Suites saw its share of Young Professionals increase from 12.0% to 13.4%.
Whether due to an affinity for prolonged “workcations” (so-called “bleisure” excursions) or an embrace of super-commuting, younger guests have emerged as key drivers of growth for the extended stay segment. And by offering low–cost accommodations that meet the needs of these travelers, Economy chains can continue to grow their share of the pie.
The hospitality industry recovery continues – led by Upper Midscale Hotels, which offer elevated experiences that don’t break the bank. But today’s market has room for other tiers as well. By keeping abreast of local visitation patterns and changing consumer profiles, hotels across chain scales can personalize the visitor experience and drive customer satisfaction.
The past few years have provided the tourism sector with a multitude of headwinds, from pandemic-induced lockdowns to persistent inflation and a rise in extreme weather events. But despite these challenges, people are more excited than ever to travel – more than half of respondents to a recent survey are planning on increasing their travel budgets in the coming months.
And while revenge travel to overseas destinations is still very much alive and well, the often high costs associated with traveling abroad are shaping the way people choose to travel. Domestic travel and tourism are seeing significant growth as more affordable alternatives.
This white paper takes a closer look at two of the most popular domestic tourism destinations in the country – New York City and Los Angeles. Over the past year, both cities have continued to be leading tourism hotspots, offering a wealth of attractions for visitors. What does tourism to these two cities look like in 2024, and what has changed since before the pandemic? How have inflation and rising airfare prices affected the demographics and psychographics of visitors to these major hubs?
Analyzing the distribution of domestic tourists across CBSAs nationwide from May 2023 to April 2024 reveals New York and Los Angeles to be two of the nation’s most popular destinations. (Tourists include overnight visitors staying in a given CBSA for up to 31 days).
The New York-Newark-Jersey City, NY-NJ-PA metro area drew the largest share of domestic tourists of any CBSA during the analyzed period (2.7%), followed closely by the Los Angeles-Long Beach-Anaheim, CA CBSA (2.5%). Other domestic tourism hotspots included Orlando-Kissimmee-Sanford, FL (tied for second place with 2.5% of visitors), Dallas-Fort Worth-Arlington, TX (1.9%), Las Vegas-Henderson-Paradise, NV (1.8%), Miami-Fort Lauderdale-Pompano Beach, FL (1.8%), and Chicago-Naperville, Elgin, IL-IN-WI (1.6%).
The Big Apple. The City That Never Sleeps. Empire City. Whatever it’s called, New York City remains one of the most well-known tourist destinations in the world. And for many Americans, New York is the perfect place for an extended weekend getaway – or for a multi-day excursion to see the sights.
But where do these NYC-bound vacationers come from? Diving into the data on the origin of visitors making medium-length trips to New York City (three to seven nights) reveals that increasingly, these domestic tourists are coming from nearby metro areas.
Between 2018-2019 and 2023-2024, for example, the number of tourists visiting New York City from the Philadelphia metro area increased by 19.2%.
The number of tourists coming from the Boston and Washington, D.C metro areas, and from the New York CBSA itself (New York-Newark-Jersey City, NY-NJ-PA) also increased over the same period.
Meanwhile, further-away CBSAs like San Francisco-Oakland-Berkeley, CA, Atlanta-Sandy Springs-Alpharetta, GA, and Miami-Fort Lauderdale-Pompano Beach, FL fed fewer tourists to NYC in 2023-2024 than they did pre-pandemic. It seems that residents of these more distant metro areas are opting for vacation destinations closer to home to avoid the high costs of air travel.
Diving even deeper into the characteristics of visitors taking medium-length trips to New York City reveals another demographic shift: Tourists staying between three and seven nights in the Big Apple are skewing younger.
Between 2018-2019 and 2023-2024, the share of visitors to New York City from areas with median ages under 30 grew from 2.1% to 4.5%. Meanwhile, the share of visitors from areas with median ages between 31 and 40 increased from 34.3% to 37.7%.
The impact of this trend is already being felt in the Big Apple, with The Broadway League reporting that the average age of audiences to its shows during the 2022- 2023 season was the youngest it had been in 20 seasons.
The shift towards younger tourists can also be seen when examining the psychographic makeup of visitors to popular attractions in New York City. Analyzing the captured markets of major NYC landmarks with data from Spatial.ai’s PersonaLive dataset reveals an increase in households belonging to the “Educated Urbanites” segment between 2018-2019 and 2023-2024.
These well-educated, young singles are increasingly visiting iconic NYC venues such as the Whitney Museum of American Art, The Metropolitan Museum of Art, The American Museum of Natural History, and the Statue of Liberty. This shift highlights the growing popularity of these attractions among young, educated singles, reflecting a broader trend of increased domestic tourism among this demographic.
New York City’s tourism sector is adapting to meet the changing needs of travelers, fueled increasingly by younger visitors who may be unable to take a costly international vacation. How have travel patterns to Los Angeles changed in response to increasing travel costs?
While New York City is the East Coast’s tourism hotspot, Los Angeles takes center stage on the West Coast. And as overseas travel has become increasingly out of reach for Americans with less discretionary income, the share of domestic tourists originating from areas with lower HHIs has risen.
Before the pandemic, 57.6% of visitors to LA came from affluent areas with median household incomes (HHIs) of over $90K/year. But by 2023-2024, this share decreased to 50.7%. Over the same period, the share of visitors from areas with median HHIs between $41K and $60K increased from 9.7% to 12.5%, while the share of visitors from areas with HHIs between $61K and $90K rose from 32.1% to 35.8%.
Diving into the psychographic makeup of visitors to popular Los Angeles attractions – Universal Studios Hollywood, Disneyland California, the Santa Monica Pier, and Griffith Observatory – also reflects the above-mentioned shift in HHI. The captured markets of these attractions had higher shares of middle-income households belonging to the “Family Union” psychographic segment in 2023-2024 than in 2018-2019.
Experian: Mosaic defines this segment as “middle income, middle-aged families living in homes supported by solid blue-collar occupations.” Pre-pandemic, 16.0% of visitors to Universal Studios Hollywood came from trade areas with high shares of “Family Union” households. This number jumped to 18.8% over the past year. A similar trend occurred at Disneyland, Santa Monica Pier, and Griffith Observatory.
And like in New York City, growing numbers of visitors to Los Angeles appear to be coming from nearby areas. Between 2018-2019 and 2023-2024, the share of in-state visitors to major Los Angeles attractions increased substantially – as people likely sought to cut costs by keeping things local.
Pre-pandemic, for example, 68.9% of visitors to Universal Studios Hollywood came from within California – a share that increased to 72.0% over the past year. Similarly, 59.7% of Griffith Observatory visitors in 2018-2019 came from within the state – and by 2023-2024, that number grew to 64.7%.
Even when times are tight, people love to travel – and New York and Los Angeles are two of their favorite destinations. With prices for airfare, hotels, and dining out increasing across the board, younger and more price-conscious households are adapting, choosing to visit nearby cities and enjoy attractions closer to home. And as the tourism industry continues its recovery, understanding emerging visitation trends can help stakeholders meet travelers where they are.
The positive retail momentum observed in Q1 2024 continued into Q2 – as stabilizing prices and a strong job market fostered cautious optimism among consumers. Year-over-year (YoY) retail foot traffic remained elevated throughout the quarter, with June in particular seeing significant weekly visit boosts ranging from 4.7% to 8.5%.
The robustness of the retail sector in Q2 was also highlighted by positive visit growth during the quarter’s special calendar occasions, including Mother’s Day (the week of May 6th) and Memorial Day (the week of May 27th). And though consumer spending may moderate as the year wears on, retail’s strong Q2 showing offers plenty of room for optimism ahead of back-to-school sales and other summer milestones.
On a quarterly basis, overall retail visits rose 4.2% in Q2. And diving into specific categories shows that value continued to reign supreme, with discount and dollar stores seeing the most robust YoY visit growth (11.2%) of any analyzed category.
Other essential goods purveyors, such as grocery store chains (7.6%) and superstores (4.6%), also outperformed the overall retail baseline. And fitness – a category deemed essential by many health-conscious consumers – outpaced overall retail with a substantial 6.0% YoY foot traffic increase.
The decidedly more discretionary home improvement industry performed less well than overall retail in Q2 – but in another sign of consumer resilience, it too experienced a YoY visit uptick. And overall restaurant foot traffic increased 2.6% YoY.
Discount and dollar stores enjoyed a strong Q2 2024, maintaining YoY visit growth above 10.0% for six out of the quarter’s 13 weeks. Only during the week of April 1st did the category see a temporary decline, likely the result of an Easter calendar shift. (The week of April 1st 2024 is being compared to the week of April 3rd, 2023, which included the run-up to Easter)
Some of this growth can be attributed to the continued expansion of segment leaders like Dollar General. But the category has also been bolstered by the emphasis consumers continue to place on value in the face of still-high prices and economic uncertainty.
Dollar General, which has been expanding both its store count and its grocery offerings, saw YoY visits increase between 9.1% and 15.9% throughout the quarter. Affordable-indulgence-oriented Five Below, which has also been adding locations at a brisk clip, saw YoY visits increase between 4.9% and 18.8%.
And though Dollar Tree has taken steps to rightsize its Family Dollar brand, the company’s eponymous banner – which caters to middle-income consumers in suburban areas – continued to grow both its store count and its visits in Q2.
Grocery store chains also performed well in Q2 2024 – experiencing strongly positive foot traffic growth throughout the quarter. Though the sector continues to face its share of challenges, stabilizing food-at-home prices and improvements in employee retention and supply chain management have helped propel the industry forward.
Diving into the performance of specific chains shows that within the grocery segment, too, price was paramount in Q2 2024 – with limited-assortment value grocery stores like Aldi and Trader Joe’s leading the way.
Traditional chains H-E-B and Food Lion (owned by Ahold Delhaize) – both of which are known for relatively low prices – outperformed the wider grocery sector with respective YoY foot traffic boosts of 11.4% and 8.7%. But ShopRite, Safeway (owned by Albertsons), Kroger, and Albertsons also drew more visits in Q2 2024 than in the equivalent period of last year.
Fitness has proven to be relatively inflation-proof in recent years – thriving even in the face of reduced discretionary spending and consumer cutbacks. Indeed, rising prices may have actually helped boost gym attendance, as people sought to squeeze the most value out of their monthly fees and replace pricy outings with already-paid-for gym excursions.
And despite lapping a remarkably strong 2023, visits to gyms nationwide remained elevated YoY in Q2 2024.
Diving into the data for some of the nation’s leading gyms shows that today’s fitness market has plenty of room at the top. Planet Fitness, 24 Hour Fitness, Life Time Fitness, Orangetheory Fitness, and LA Fitness all experienced YoY visit growth in Q2 2024 – reflecting consumers’ enduring interest in all things wellness-related.
But it was EōS Fitness and Crunch Fitness – two value gyms that have been pursuing aggressive expansion strategies – that really hit it out of the park, with respective YoY foot traffic increases of 23.4% and 21.4%.
The week of April 1st saw a decline in YoY visits to superstores – likely attributable to the Easter calendar shift noted above. But the category quickly rallied, and with back-to-school shopping and major superstore sales events coming up this July, the category appears poised to enjoy continued success throughout the summer.
Within the superstore category, wholesale clubs continued to stand out – with Costco Wholesale, Sam’s Club and BJ’s Wholesale Club enjoying YoY foot traffic growth ranging from 12.0% to 7.4%. But Target and Walmart also impressed with 4.6% and 4.0% YoY visit increases.
Inflation, elevated interest rates, and a sluggish real estate market have created a perfect storm for the home improvement industry, with spending on renovations in decline. The accelerated return to office has likely also taken its toll on the category, as people spend more time outside the home and have less availability to immerse themselves in DIY projects.
But despite these challenges, weekly YoY foot traffic to home improvement and furnishing chains remained elevated throughout much of the Q2 – with June and April seeing mostly positive YoY visit growth, and May hovering just below 2023 levels. This (modest) visit growth may be driven by consumers loading up on supplies for necessary home repairs, or by shoppers seeking materials for smaller projects. And given the importance of Q2 for the home improvement sector, this largely positive snapshot may offer some promise of good things to come.
Some chains within the home improvement category continued to perform especially well in Q2 2024 – with rapidly expanding, budget-oriented Harbor Freight Tools leading the pack. But Ace Hardware, Menards, The Home Depot, and Lowe’s also saw foot traffic increases in Q2, showcasing the category’s resilience in the face of headwinds.
Restaurants – including full-service restaurants (FSR), quick-service restaurants (QSR), fast-casual chains, and coffee chains – lagged behind grocery stores and other essential goods retailers in Q2 2024, as price-sensitive consumers prioritized needs over wants and ate at home more often.
Still, YoY restaurant foot traffic remained up throughout most of the quarter. And impressively, the sector saw a YoY visit uptick during the week of Mother’s Day (the week of May 6th, 2024, compared to the week of May 8th, 2023) – an important milestone for FSR.
The restaurant industry’s YoY visit growth was felt across segments – though fast-casual and coffee chains experienced the biggest visit boosts. Like in Q1 2024, fast-casual restaurants hit the sweet spot between indulgence and affordability, outpacing QSR in the wake of fast food price hikes. And building on the positive YoY trendline that began to emerge last quarter, full-service restaurants finished Q2 2024 with a 1.4% YoY visit uptick.
Chain expansion was the name of the restaurant game in Q2 2024, with several chains that have been growing their footprints outperforming segment averages – including CAVA, Chipotle Mexican Grill, Ziggi’s Coffee, California-based Philz Coffee, Raising Cane’s, Whataburger, and First Watch. Chili’s Grill and Bar also outpaced the full-service category average, aided by the revamping of its “3 for Me” menu.
Retailers and restaurants in Q2 2024 continued to face plenty of challenges, from inflation to rising labor costs and volatile consumer confidence. But foot traffic trends across industries – including both essential goods purveyors like grocery stores and more discretionary categories like home improvement and restaurants – suggest plenty of room for cautious optimism as 2024 wears on.
