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Gym visits flourished at the start of 2024, as consumers made their yearly New Years resolutions and flocked to fitness clubs nationwide. But how did category leaders fare in Q2 2024? We dove into the data to find out – zooming in on Planet Fitness, a major player in the fitness space.
Throughout H1 2024, Planet Fitness experienced consistent YoY visit growth, finishing out Q2 2024 with a quarterly increase of 6.3% compared to the equivalent period of 2023. And though some of this visit growth is due to Planet Fitness’ ongoing expansion, the average number of visits to each of the chain’s gyms also increased YoY during most of the analyzed period.
Indeed, only in March and May 2024 did the average number of visits to each Planet Fitness location decline YoY. And a look at the weekly breakdown of visits to Planet Fitness shows that these declines may be due, in part, to calendar shifts.
Location analytics reveal that though some people like to hit the gym on weekends, many customers prefer to get their exercise in on regular work days, especially at the start of the week: Throughout H1 2024, Planet Fitness drew the most visits on Mondays (17.4% of weekly visits), Tuesdays (17.7%), and Wednesdays (17.2%), with attendance dropping steadily as the week wore on. And both March and May 2024 – the two months that saw visits per location decline YoY – contained fewer non-holiday Mondays, Tuesdays, or Wednesdays than the equivalent periods of 2023.
Planet Fitness’ continued visit success appears to be driven, in part, by its growing share of frequent visitors. Gym visitation is highly seasonal – with visits slumping during the holidays and then spiking in January, as people vow to double down on exercise routines.
A look at changes in the share of Planet Fitness visitors hitting the gym at least four times per month (roughly, once a week) reveals a similar pattern. The share of frequent visitors is at its highest in January, remains elevated through April or May, and declines as the year draws to a close. (January 2022 deviated from this pattern, likely due to the Omicron resurgence.)
Despite these seasonal fluctuations, the share of visitors making weekly stops at Planet Fitness has been on an overall upward trajectory – going higher each year between 2021 and 2023. And though this rise leveled off in 2024 amidst a stabilizing fitness market, frequent visitor rates remained high in 2024, with some months seeing continued YoY increases. This elevated loyalty is good news for Planet Fitness – since more engaged customers are more likely to renew or even upgrade their memberships.
With value still top of mind for many consumers, Planet Fitness’ famously low prices have positioned the chain for success. Will this positive momentum continue as consumers adjust to the chain’s first basic membership price increase in 26 years?
Follow Placer.ai’s data-driven analyses to find out.
*This report excludes locations within Washington state due to local legislation.
Now that we’ve cleared the halfway point for 2024 with retailers preparing for back-to-school shopping (and Q2 2024 reporting season), we thought we’d take stock of where we stand from a retail category perspective. Last year, we looked at visit per location data by retail category at the halfway point for the year, which proved to be a useful indicator for what to expect for the rest of the year. We thought we’d revisit the analysis to give some perspective of what to expect in the months to come.
Needless to say, it’s been another volatile year for most retailers, with a tepid start to the year due to weather, followed by solid event/holiday spending in February/March, and a lackluster April (though partly the result of the Easter holiday calendar shift). May, June, and July visitation data offered some encouraging signs, with year-over-year visits increasing to a mid-single-digit level (according to Placer's Industry Trends report). Importantly, increased visits won’t necessarily translate into the same level of sales increases, as visits are continuously being driven by deals/lower price points for many categories.
Based on the positive trendline for retail in general, it shouldn’t be a surprise that the majority of the 25 retail categories we’ve presented show positive growth from a visit per location year-over-year perspective (below).
A few notable takeaways from the visit per location analysis:
Last year, our midpoint visit per location trends gave us some ideas as to how the second half of the year might shake out. Based on our first half 2024 visitation data, we expect (1) consumers to continue prioritize value in the second half of the year, especially those chains that have been able to create excitement/newness for their value assortment; (2) consumers will continue to prioritize holidays/events, which bodes well for back-to-school, Halloween, Thanksgiving, and Christmas; (3) we will continue to see better balance between experiences and goods this year (as we've discussed in the past).
Retailer summer deals are in full swing, with promotional events like Amazon Prime Day and Nordstrom Anniversary Sale, Target Circle Week, and Macy’s All Star Week taking place over the past two weeks. The summer has come to signify the first large scale, cross-industry retailer push to engage with consumers and also test new promotional strategies with shoppers.
Target’s reinvigoration of its loyalty program, Target Circle, launched in April as a streamlined program with more perceived value for members and created a new paid tier called Target Circle 360. Target Circle Week, which took place between July 7-13, focused more on loyalty program members than previous iterations of the event to drive visits by loyal shoppers. The retailer promoted items across discretionary and essential categories, an effort meant to offset the challenges in the discretionary side of the business this year. Mass merchants have been especially challenged compared to warehouse clubs in the superstore category, and Circle Week, especially as the first event of the retailer's summer deals, is a barometer of what’s to come.
According to our foot traffic measurements, Target Circle Week was successful in driving incremental traffic growth, resulting in the highest percentage of growth in visits so far in 2024 on a year-over-five-year basis.
Circle Week also saw a slightly higher dwell time, with visitors spending an average of 29 minutes in store, about a minute higher than 2024 year to date. The week performed well in visits exceeding 45 minutes compared to the year-to-date percentage of visits, which could signal that shoppers coming in for deals spend longer browsing and purchasing. There was also a higher percentage of weekday visits during Circle Week compared to 2024 overall, a promising sign for the week-long event.
Looking specifically at individual store locations that over performed during Circle Week, one that stood out is Target’s original large format store location in Katy, TX. This location opened in fall 2022 to much fanfare; it features a larger curbside pick-up area, multiple shop-in-shop concepts, and a larger grocery footprint. Traffic to the Katy location also increased the most in the week of July 8-14, but it far exceeded the total traffic growth to Target, with visits up almost 55% compared to the same week in 2023, when Target’s event ran last year. Circle Week also kept visitors in store longer at the Katy location, with dwell times increasing by 2 minutes on average compared to 2024 year-to-date.
With the success of this event in bringing in visitors, it will be interesting to see how Target tries to maintain the momentum through the back half of the year. With the announcement of price cuts and a renewed focus on providing as much value as possible to consumers, the enhanced Target Circle program appears to be bolstering those initiatives. As we get further away from the other retailer deal day events as well, we will be able to fully examine the effectiveness of this year’s summer promotional period and also provide more observations as we approach the holiday season.
Using Placer's Return to Office report, we see that Miami continues to be the champion when it comes to returning to office. With a whopping 88% recovery rate, it is heads above the other cities, with NYC coming in at 73% for the month of June. Rounding out the top 5 recoveries are Southern cities like Atlanta (66%), Charlotte (64%), and Forth Worth (64%). These cities are all above the nationwide average for return-to-office, which is 63%.
By contrast, two of the major West Coast cities--San Francisco and Los Angeles lag below the nationwide return rate at 45% and 55%, respectively.
Other major cities in the Midwest, like Chicago and Detroit, are seeing similar rates of lagging return-to-office. In Chicago, 55% have returned compared to Jan 2020 and in Detroit, only 42%.
Moving over to the East Coast, Philadelphia and Washington DC--both at 57% RTO--are also below the nationwide average.
The good news for offices is that taken as a whole, we are seeing upward trends in employees returning to office, albeit perhaps slower than those in commercial real estate or the C-suite would like.
It’s often a good sign when Placer data reflects positive year-over-year growth and in the case of Bass Pro Shops, that’s exactly what we’re seeing for the months of June 2023-June 2024 (note April is down, but that is partially due to last year’s April having five weekends instead of four).
Bass Pro Shops skipped a slight beat immediately after COVID in spring 2020, but by early summer had already regained its store traffic as everyone took to the great outdoors in their quest for social distancing. Ever since, it’s been business as usual with similar peaks around Black Friday weekend and the week before Christmas.
Bass Pro Shop’s footprint is particularly strong in the eastern half of the US. They acquired Cabela’s a few years back and maintained the separate brands. This acquisition gave them an additional presence in the Pacific Northwest and Mountain states.
Both brands over index for the segments Blue Collar Suburbs, Upper Suburban Diverse Families, Suburban Boomers, and Wealthy Suburban Families per Spatial.ai’s PersonaLive. Small Town and Rural High Income also over index at Cabela’s.
RBI and Yum! Brands hold some of America’s favorite restaurants in their portfolios. How are these parent companies and their leading chains faring at the year’s midway point? We dove into the data to find out.
RBI shined in Q2 2024 – seeing a 1.7% increase in visits and a 2.2% increase in visits per location, YoY – due partly to expanding footprints across several of its brands.
Firehouse, Popeyes, and Tim Hortons’ growth likely played a part in overall visit gains to each chain during the quarter. And though Popeyes and Tim Hortons saw minor visit-per-location gaps emerge as the chains added new locations, the fact that this metric remained nearly on par with last year’s levels shows that the chains’ expansions are not diluting existing demand. Both Popeyes and Tim Hortons are likely to see YoY visits per location pick up as each of their new restaurants gains momentum.
Accounting for 69.3% of visits to RBI in Q2 2024, Burger King’s positive foot traffic during the period had a significant impact on its parent company’s success.
RBI management cited equipment upgrades, remodels and advertising as recent drivers of visit growth for Burger King – which despite the shuttering of dozens of underperforming restaurants over the past year, saw a 1.5% chain-wide YoY visit increase in Q2 2024.
And analyzing visit-per-location trends at Burger King shows that the chain’s rightsizing strategy is paying dividends: Since Q2 2023, YoY visits per location have been on a steady incline, closing out Q2 2024 with a 4.3% increase. This indicates that as individual Burger King locations have shut their doors, the remaining restaurants have gotten even busier.
Taco Bell, which accounted for 70.5% of visits to Yum! Brands' restaurants in Q2 2024, drove visits to Yum! in much the same way that Burger King gave a boost to RBI. During the quarter, visits to Taco Bell increased 5.0% YoY while visits per location rose 3.5%. And the taco chain propelled foot traffic growth for Yum! Brands as a whole – with YoY visits and visits per location up a respective 3.1% and 3.5% in Q2 2024.
Taco Bell is the leader in Yum! Brands’ portfolio for good reason. The chain is well-known as one of the world’s most innovative companies. And the taco leader appears to have done it again with “Taco Tuesday” specials. On the Tuesdays of March 26th, April 9th, and April 16th, 2024 the chain offered select menu-favorites for $1 for one hour. This promotion led into a separate $5 Dollar Taco Discovery Box deal, which was available on “Taco Tuesdays” between April 23rd and June 4th, 2024.
The data suggests that both of these promotions drove substantial foot traffic. Beginning on March 26th, Tuesday visits to Taco Bell rose significantly compared to the H1 2024 Tuesday average. And even after the promotions ended, “Taco Tuesdays” retained their draw – perhaps aided by the subsequent launch of a summer menu and the company’s formal entrance into the value meal wars with its much-vaunted Luxe Craving’s Box.
Led by their flagship restaurants, RBI and Yum! Brands appear to be on the right track. The strategic expansion of certain chains and the rightsizing of others has paid off in visit growth for RBI, while Yum! continues to strike it big with Taco Bell’s winning promotions.
For more dining updates, visit Placer.ai.
New year, new retail opportunities. And though 2023 is firmly in the rearview mirror, the economic headwinds that characterized much of the year have yet to fully dissipate. But every challenge also brings with it new opportunities, and many retailers are adapting to meet their customers' changing wants and needs.
This white paper analyzes location intelligence for 10 brands poised to succeed in 2024. Some, like low-cost apparel and home furnishing stores, are benefitting from consumer trade-down. Others are expanding into rural or suburban areas to meet customers where they are. Read on for some of 2024’s retail winners.
Until around four years ago, New Balance sneakers were commonly seen on the feet of suburban dads – not exactly a recipe for high fashion. But all that began to change in 2019 when the company began collaborating with Teddy Santis, who eventually became New Balance’s creative director. Since then, the brand’s popularity has surged among Gen Z and X and is now one of the fastest-growing sneaker companies in the industry, despite the increasing competition in sneaker space. In 2023, foot traffic to New Balance stores grew 3.3% year-over-year (YoY) and the brand has firmly established itself as ultimate retro cool.
Diving into the demographics of New Balance stores’ captured market trade area reveals the success of the chain’s rebranding. In 2023, New Balance’s trade area included larger shares of “Ultra Wealthy Families,” “Young Professionals,” and “Educated Urbanites” than the average shoe store’s trade area – highlighting New Balance’s successful reinvention as a brand for the young and hip.
The home improvement space is dominated by Lowe’s and Home Depot – but Harbor Freight Tools is quickly making a name for itself as a go-to destination for affordable tools and supplies.
Over the past few years, Harbor Freight Tools has expanded rapidly, with many of its new stores opening in smaller towns and cities. And the expansion appears to be paying off, with visits up YoY during every month of 2023. And although the chain is now operating with a significantly larger store fleet, the average number of visits per venue has generally increased – indicating that the company is expanding into markets where it is meeting a ready demand.
Over a decade after Mackelmore dropped his smash hit “Thrift Shop” in 2012, second-hand stores are still enjoying their time in the limelight. Shoppers, driven by a desire to reduce waste, find unique styles, and to save a few dollars at the till, continue to flock to thrift stores. And Winmark Corporation, which operates five secondhand goods chains – including apparel brands Plato’s Closet (young adult clothes), Once Upon a Child (children's clothes and toys), and Style Encore (women's clothing) – has benefited from the strong demand. Visits to the three Winmark clothing banners increased an average of 5.3% YoY in 2023.
The median household income (HHI) in the trade areas of Winmark’s apparel chains tends to be lower than the median HHI in the wider apparel category – so budget-conscious consumers are driving at least some of the company’s growth. With more consumers looking for ways to cut back on spending in 2024, the demand for second-hand clothes is expected to grow even further – and Winmark is likely to continue reaping the benefits.
HomeGoods, a treasure hunter's dream, is the discount home furnishing retailer owned by off-price retail giant TJX Companies. The chain, which operates over 900 brick-and-mortar stores, recently closed its e-commerce platform to focus on its physical locations – where foot traffic grew 6.0% between 2023 and 2022.
HomeGoods carries kitchen and home decor items along with furniture, and may be benefiting from the relative strength of the houseware segment, driven in part by an increase in at-home entertainment. And in a surprising twist, this low-cost retailer attracts more affluent visitors than visitors to the home furnishing segment overall. The median household income (HHI) in HomeGoods’ trade area stood at $84.7K/year compared to a $78.5K median HHI in the trade area of the average home furnishing chain. As economic uncertainty and the resumption of student loan payments impact consumers, wealthier shoppers seeking a budget-friendly home refresh are likely to continue choosing HomeGoods over pricier alternatives.
Florida-based Bealls, Inc., which got its start as a small town five-and-dime in 1915 in Bradenton, Florida, now operates over 600 stores across the country. The company, which saw an impressive 9.0% YoY increase in visits in 2023, recently consolidated its two largest banners – Burkes Outlet and Bealls Outlet – under the Bealls name.
One reason for Bealls’ success could be its appeal to rural consumers. Over the past five years, the share of households falling into Spatial.ai: PersonaLive’s “Rural Average Income” segment has steadily increased, growing from 12.6% in 2019 to 15.1% in 2023. With rural shoppers continuing to command ever-more attention from retailers, the increase in visits from this segment bodes well for Bealls in 2024.
Ollie’s Bargain Outlet was built for this economy. The chain saw a 13.0% YoY increase in visits in 2023, thanks in part to its popularity among a wide array of budget-conscious consumers. Ollie’s has found success with rural shoppers while maintaining its appeal among value-oriented suburban segments – and the chain’s diverse audience base seems to be setting it apart from other discount retailers.
A closer look at the chain’s captured market data, layered with the Spatial.ai: Personalive dataset, reveals that Ollie’s trade area includes larger shares of the “Blue Collar Suburbs” and “Suburban Boomer” segments when compared to the wider Discount & Dollar Stores category. As the chain plots its expansion, focusing on suburban and rural areas may help Ollie’s meet its customers where they are.
Trader Joe’s has managed to do what few stores can. The company does not invest in marketing, has no online shopping options, and loyalty programs? Forget about it. But despite this unusual approach to running a business, the California native has enjoyed consistent success over the years, with a 12.4% YoY increase in visits in 2023.
Trader Joe’s is particularly popular among younger shoppers, perhaps thanks to the company’s focus on sustainability and social responsibility – as well as its famously low prices. Analyzing the chain’s trade area using the AGS: Panorama dataset reveals that Trader Joe’s attracts more “Emerging Leaders” and “Young Coastal Technocrats” (segments that describe highly educated young professionals) than the average grocery chain. With Gen Z particularly concerned about putting their money where their mouth is, Trader Joe’s is likely to sustain its momentum in 2024 and beyond.
Convenience stores are growing up and evolving into bona-fide dining destinations. And Foxtrot, a Chicago-based chain with 29 stores across Texas, Illinois, Washington, Maryland, and Virginia, is one c-store redefining what a convenience store can be. The chain, which announced a merger with Dom’s Kitchen in November 2023, offers an upscale convenience store experience and is particularly known for including local brands in its product assortment as well as its excellent wine curation and dining options.
Visitors to the chain were significantly more likely to fall into AGS: Behavior & Attitudes dataset’s “Wine Drinker” or “Nutritionally Aware” segments than visitors to nearby convenience stores. The company plans to ramp up store openings, particularly in the suburbs, where convenience and a good bottle of wine might just find the perfect home as a welcome distraction from the daily grind.
Jersey Mike’s is one of the fastest-growing franchise dining chains in the country, operating over 2,500 locations in all 50 states. The sandwich chain has seen its popularity take off over the past few years, with 2023 visits up 14.1% YoY and plans to open 350 new stores in 2024.
The company has long prioritized affluent class suburban customers – and visitation data layered with the Experian: Mosaic dataset reveals that Jersey Mike’s has indeed succeeded in attracting this audience. The percentage of “Booming with Confidence” and “Flourishing Families” (both affluent segments) in Jersey Mike’s trade area was larger than in the trade areas of the average sub sandwich chain. As Jersey Mike’s continues its expansion, focusing on suburban areas may continue to serve the chain well.
The East Coast may not be the first region that pops to mind when thinking about tropical smoothies – but New Jersey-based Playa Bowls is making it work. The company was founded by avid surf enthusiasts determined to bring the flavors of their favorite surfing towns stateside.
Playa Bowls has enjoyed strong visit numbers in 2023, with overall visits up 23.0% and average visits per venue up 17.1% YoY – and part of the chain’s success may be driven by its ability to draw wealthier customers to its stores. The Experian: Mosaic dataset reveals that the “Power Elite” segment is overrepresented in the company’s trade areas: The share of households falling into that segment from Playa Bowl’s captured market exceeded their share in the company’s potential market. As the chain continues expanding its domestic footprint, it seems to have found its niche among a wealthy customer base.
The past year saw a wide range of challenges facing brick-and-mortar retailers as economic fears continued to shake consumer confidence. But there are plenty of bright spots as the new year gets underway. These ten brands prove that the retail world never stands still, and that the next opportunity is just around the corner.
Sports leagues like the NBA, NFL, and MLB boast billion-dollar revenues – and the venues where these games unfold hold significant commercial potential in their own rights. Many stadiums host concerts and other shows in addition to regularly held sporting matches and can accommodate tens of thousands of spectators at once – creating massive retail, dining, and advertisement opportunities.
This white paper analyzes location intelligence metrics for some of the biggest stadiums across the country to reveal the commercial potential of these venues beyond simple ticketing revenue. Where do visitors of various stadiums like to shop? Do specific sporting and cultural events impact the nearby restaurant scene differently? How can stadium operators, local businesses, and advertisers tailor their offerings to a stadium’s particular audience and make the most of the stadium and the space throughout the year?
We take a closer look below.
The three major sports leagues – the National Basketball League (NBA), Major League Baseball (MLB), and the National Football League (NFL) – play at different points of the year, and the number of games each league holds during the season also varies.
MLB leads in game frequency, with each team playing 162 games during the regular season, which runs approximately from April through September. Basketball season is also around six months – roughly from mid-October to mid-April – but each NBA team plays only 82 games a season. And the NFL has both the shortest season – 18 weeks running from early September to early January (with the pre-season starting in August) – and the fewest number of matches per team. Understanding the monthly visitation patterns for the various types of stadiums can help advertisers, stadium operators, and other stakeholders ensure that they are leveraging the full potential of the venue throughout the year.
Unsurprisingly, the sports arenas serving the different leagues see visit spikes during their leagues’ respective season. But comparing visit numbers throughout the year to the average monthly visit numbers for each category in 2023 reveals that the relative visit increases and decreases during the on- and off-season vary for each type of stadium.
MLB stadiums display the steadiest visit strength during the on-season – perhaps due to MLB’s packed game schedule. MLB tickets also tend to be relatively affordable compared to tickets to pro football or basketball matches, which may also contribute to MLB’s consistently strong visit numbers throughout the season. During the MLB off-season, baseball fields – which tend to be uncovered – are relatively empty.
The seasonal visit spike to NBA arenas is less steady. The beginning and end of the season see strong peaks, and visits slow down slightly during the mid-season months of January and February. Visits then drop during the off-season spring and summer, but the off-season visit dip is not as low as it is for MLB fields – perhaps because the NBA arenas’ indoor nature make them suitable locations for concerts and other non-basketball events.
Meanwhile, NFL stadiums see the least dramatic drop in visits during the NFL off-season, as these venues’ enormous size also make them the ideal location for concerts and other cultural events that draw large crowds. These arenas’ strong almost year-round visitation numbers mean that sponsors and advertisers looking to expand beyond sports fans to reach a diverse audience may have the most success with these venues.
Although MLB offers the most budget-friendly outing, combining STI: Popstats demographic metrics with trade area data reveals that MLB stadium visitors reside in higher-income areas when compared with visitors to NBA or NFL stadiums.
Baseball fans tend to be older than fans of the other sports, which could partially explain MLB stadium visitors’ higher household income (HHI). The combination of lower ticket prices, higher median HHI among fans, and many games per season offers baseball stadiums significant opportunities to engage effectively with their fan bases.
But while NBA and NFL stadium attendees may not come from as high-income areas as do MLB stadium visitors, fans of live basketball and football still reside in trade areas with a higher HHI compared to the nationwide median. So by leveraging stadium space, advertisers and other stakeholders can reach tens of thousands of relatively high-income consumers easily and effectively.
Sports fans are known to be passionate, engaged, and willing to spend money on their team – but stadium visitors also shop for non-sports related goods and services. Retailers and advertisers can draw on location analytics to uncover the consumer preferences of stadium visitors and tailor campaigns, sponsorships, and collaborations accordingly.
Visitation data to the top five most visited MLB stadiums during 2023 showed differences between the apparel and sporting goods shopping preferences of the various stadiums’ attendees. While 39.4% of visitors to Truist Park also visited DICK’s in 2023, only 30.8% of Yankee Stadium visitors stopped by the sporting goods retailer in the same period. Similarly, while 29.9% of visitors to Yankee Stadium frequented Kohl’s, that percentage jumped to 47.3% for Busch Stadium visitors.
Harnessing location intelligence to see the consumer preferences of a stadium’s visitor base can help retailers, stadium operators, and even team managers choose partnerships and merchandising agreements that will yield the most effective results.
Sports and snacks go hand in hand – what would a baseball game be without a hot dog or peanuts? But while every stadium likely provides a similar core of traditional game day eats, each venue also offers a unique set of dining options, both on- and off-premise. And by leveraging location analytics to gain visibility into stadium-goers dining habits, stadium operators and local food businesses can understand how to best serve each arena’s audience.
Mapping where stadium visitors dine before and after games can help stakeholders in the stadium industry reach more fans.
The chart below shows the share of visitors coming to a stadium from a dining venue (on the x-axis) or going to a dining venue after visiting the stadium (on the y-axis). The data reveals a correlation between pre-stadium dining and post-stadium dining – stadiums where many guests visit dining venues before the stadium also tend to have a large share of guests going to dining venues after the event. For example, the AT&T Stadium in Arlington, Texas, saw large shares of visitors grabbing a bite to eat on their journey to or from the stadium, while the M&T Bank Stadium in Baltimore, Maryland saw low rates of pre- and post stadium dining engagement.
These trends present opportunities for both local businesses and stadium stakeholders. For example, venues with high dining engagement can explore partnerships with local restaurants, while those with lower rates can build out their in-house dining options for hungry sports fans.
Stadiums looking to enhance their food offerings – or local entrepreneurs thinking of opening a restaurant near a stadium – can also get inspired by stadium visitors’ dining preferences. For example, psychographic data taken from the Spatial.ai: FollowGraph dataset reveals that visitors to MetLife Stadium in East Rutherford, New Jersey have a much stronger preference for Asian cuisine compared to New Jersey residents overall. With that knowledge, the stadium can enhance the visitor experience by expanding its Asian food offerings.
On the other hand, MetLife Stadium goers seem much less partial to Brewery fare than average New Jerseyans, so the stadium operators and restaurateurs may want to avoid offering too many Brewery-themed dining options. Stadium stakeholders can reserve the craft beers for Caesars Stadium, M&T Bank Stadium, and Soldier Field Stadiums, where visitors seem to enjoy artisanal brews more than the average resident in Louisiana, Maryland, and Illinois, respectively.
All of the stadiums analyzed exhibited unique visitor dining tastes, a reminder that no customer or fan base is alike. Aligning on- or off-site dining options with offerings that align with a given customer base’s preferences can improve overall visitor satisfaction and boost revenues.
Zooming in to look at consumer behavior around individual events reveals further variability in dining preferences even among visitors to the same stadium, with different types of events driving distinct dining behaviors.
State Farm Stadium in Glendale, Arizona, is home to the Arizona Cardinals. The stadium hosted the 2023 Super Bowl, but the NFL stadium also acts as a concert venue for acts ranging from Taylor Swift to Metallica. And location intelligence reveals that the dining preferences of stadium visitors vary based on the events held at the venue.
During the Super Bowl, sports bars such as Yard House and Buffalo Wild Wings saw the largest increase in visits compared to the chains’ daily average. A month later, attendees at Taylor Swift's concert gave fried-chicken leader Raising Cane’s a significant boost.
Local restaurants can leverage location analytics to see what types of events are popular with their visitor base and craft collaborations and advertising campaigns that resonate effectively with their patrons.
Sports stadiums and arenas are not just spaces for sports and music enthusiasts to gather; they also offer significant commercial opportunities for the surrounding communities. Stadium operators and local businesses can fine-tune their offerings by utilizing location analytics to better connect with their visitor bases and uncover new retail opportunities.
The dining industry showcased its agility over the past couple of years as it rapidly adapted to shifts in consumer preference brought on by COVID and rising prices. And with a new year around the corner, the pace of change shows no signs of slowing down.
This white paper harnesses location analytics, including visitation patterns, demographic data, and psychographic insights, to explore the trends that will shape the dining space in 2024. Which dining segments are likely to pull ahead of the pack? How are chains responding to changes in visitor behavior? And where are brands driving dining foot traffic by taking advantage of a new advertising possibility? Read on to find out how dining leaders can tap into emerging trends to stay ahead of the competition in 2024.
Comparing quarterly visits in 2023 and 2022 highlights the impact of the ongoing economic headwinds on the dining industry. The year started off strong, with year-over-year (YoY) dining visits up overall in Q1 2023 – perhaps aided by the comparison to an Omicron-impacted muted Q1 2022. And while overall dining growth stalled in Q2 2023, several segments – including QSR, Fast Casual, and Coffee – continued posting YoY visit increases, likely bolstered by consumers trading down from pricier full-service concepts.
Foot traffic slowed significantly in Q3 2023 as inflation and tighter consumer budgets constrained discretionary spending. Overall dining visits fell 2.4% YoY, and full-service restaurants – with their relatively high price point compared to other dining segments – seemed to be particularly impacted by the wider economic outlook. But the data also revealed some bright spots: Fast Casual still succeeded in maintaining positive YoY visit numbers and Coffee saw its Q3 visit grow an impressive 5.4% YoY. As the return to office continues, a pre-work coffee run or lunchtime foray to a fast-casual chain may continue propelling the two segments forward.
Restaurant visitation patterns have evolved over the past few years. Although an 8 PM seating was once the most coveted slot at fine-dining restaurants, recent visitation data suggests that sitting down to dinner earlier is rising in popularity.
But among the QSR segment, the opposite trend is emerging, with late-night visits rising. Analyzing hourly foot traffic to several major QSR chains reveals that the share of visits between 9 PM and 12 AM increased significantly between Q3 2019 and Q3 2023. Even Taco Bell – already known for its popularity among the late-night crowd – saw a substantial increase in late-night visits YoY – from 15.4% to 20.3%.
Who is driving the late night visit surge? One reason restaurants have been expanding their opening hours is to capture more Gen-Z diners, who tend to seek out nighttime dining options. But location intelligence reveals that younger millennials are also taking advantage of the later QSR closing times.
An analysis of the captured market for trade areas of top locations within one of Taco Bell’s major markets – the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan area – reveals a year-over-four-year (Yo4Y) increase in “Singles & Starters.” The “Singles & Starters” segment is defined by Experian: Mosaic as young singles and starter families living in cities who are typically between 25 and 30 years old. As consumers continue to prioritize experiential entertainment and going out with friends, late-night dining may continue to see increased interest from young city-dwellers.
Millennials and Gen-Z consumers aren’t only heading to their favorite fast food joint for a late-night bite – these audience segments are also helping drive visits on the weekends. Smoothie King is one chain feeling the benefits of young, health-conscious consumers.
The chain, which opened in New Orleans, LA, in 1973 as a health food store, has since grown to over 1,100 locations nationwide and is currently expanding, focusing on the Dallas-Fort Worth CBSA. The area’s Smoothie King venues have seen strong visitation patterns, particularly on the weekends – weekend visits were up 3.4% YoY in Q3 2023. The smoothie brand’s trade areas in the greater Dallas region is also seeing a YoY increase in weekend visits from “Young Professionals” – defined by the Spatial.ai PersonaLive dataset as “well-educated young professionals starting their careers in white-collar or technical jobs.”
While some dining chains are appealing to the late-night or weekend crowd, others are driving visits by appealing to sports lovers. How have recent rule changes around student athletes changed the restaurant game, and how can college football teams drive business in their hometowns?
College sports have long been a major moneymaker, with top-tier teams raking in billions of dollars annually. And as of 2021, college athletes can enjoy a piece of the significant fan following of college sports thanks to the change in the NCAA’s Name, Image, and Likeness (NIL) rules, which now allows student athletes to sign endorsement deals.
Since then, multiple restaurants have jumped on the opportunity to partner with student athletes, some of whom have millions of followers on Instagram and TikTok. Chains like Chipotle, Sweetgreen, Slim Chickens, and Hooters have all signed college athletes to various brand deals.
How can brands ensure they partner with athletes their customers will want to engage with? Analyzing a chain’s audience by looking at the interests of residents in a given chain’s trade area can reveal which type of athlete will be the most attractive to each brand’s customer base. For example, data from Spatial.ai: Followgraph provides insight into the social media activity of consumers in a given trade area and can highlight desirable partnerships.
Examining the trade areas of Chipotle, Sweetgreen, Slim Chickens, and Hooters, for instance, reveals that Sweetgreen’s visitors tended to have the largest share of Women’s Soccer followers. Conversely, Sweetgreen’s trade area had lower-than-average shares of College Football Fans or College Basketball Fans, while residents of the trade areas of the other three chains showed greater-than-average interest in these sports. Leveraging location intelligence can help companies choose brand deals that their customers resonate with and find the ideal athletes to represent the chain.
Finding the right college athlete partnership is one way for dining brands to appeal to college sports enthusiasts. But dining chains and venues located near major college stadiums also benefit from the popularity of their local team by enjoying a major game day visit boost.
One of the country’s most popular college football teams, the Ohio State Buckeyes, can draw millions of TV viewers, and its stadium has a capacity of 102,780 – one of the largest stadiums in the country. And while tailgating is a popular activity for Buckeyes fans, nearby restaurants are some of the biggest beneficiaries of the college football craze. Panera experienced a 235.3% increase on game days as compared to a typical day, Domino’s Pizza visits grew by 283.3%, and Tommy’s Pizza, a local pie shop, saw its visits jump by a whopping 600.9%.
This influx in diners also causes a major shift in game day visitor demographics, as revealed by changes in visitors at dining venues located near stadiums of two of the nation’s best college football teams – the Ohio State Buckeyes and Ole Miss Rebels. Based on Spatial.ai: Personalive data for the captured market of these dining venues, game day visitors tended to come from “Ultra Wealthy Families” when compared to visitors during a typical non-game day in September or October.
The analysis indicates that popular sporting events create a unique opportunity for restaurants near college stadiums to attract high-income customers game day after game day, year after year.
While some spend game day tailgating or visiting a college restaurant, others hold a viewing party – with a six-foot submarine. And the sub’s popularity extends beyond Superbowl Sundays. Sandwich chains including Jersey Mike’s, Firehouse Subs, Jimmy John’s, and Subway (recently purchased by the same company that owns Jimmy John’s) have seen sustained YoY increases in visits and visits per venue in the first three quarters of 2023.
Some of the growth to these chains may be related to their affordability, a draw at all times but especially during a period marked by consumer uncertainty and rising food costs. And subway leaders seem to be seizing the moment and striking while the iron is hot – Jersey Mike’s opened 350 stores in 2023 and still saw its YoY visits per venue grow by 6.6%. And Subway reported ten consecutive quarters of positive sales, a promising sign for its new owner.
The love for a healthy, affordable sandwich extends across all income levels, with all four chains seeing a range in their visitors' median household income (HHI). Out of the four chains analyzed, Jersey Mike’s – which has long prioritized a suburban, middle-income customer – had the highest trade area median household income of the four chains at $77.3K/year. Subway, known for its affordability, had the lowest, with $62.9K/year. The variance in median HHI combined with the strong foot traffic growth shows that when it comes to sandwiches, there’s something for everyone.
Persistent inflation and declining consumer sentiment may pose serious challenges for the dining space, but emerging trends are helping boost some restaurants. Customers seeking out a late-night bite drive visits to QSR chains, and health-conscious diners are boosting foot traffic to smoothie bars and sandwich shops. Meanwhile, sports sponsorships and game-day restaurant visits can provide a boost to dining businesses that take advantage of these opportunities.
