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Mixing high-low fashion means pairing expensive designer items with more budget-friendly ones, think H&M jeans with a tweed Chanel jacket. This concept has been around for a while, and though one may originally have had to frequent different stores to attain this, with the way investment firms are snapping up different brands, shopping “High-Low” may become a more commonplace occurrence. Regent acquired Escada in 2019 and Club Monaco in 2021. While one might not normally think of those brands in the same sentence, if you’re walking on Beverly Drive and enticed by the Club Monaco outfits, walk in a bit deeper and before you know it, you will be encountering designer pantsuits and evening gowns by Escada.
Since the space is all one, it’s hard to decipher who’s going in for Club Monaco versus for Escada. Technically, Escada has its own entrance on Brighton Way. Either way, overall traffic for this space is up in the last few months, so perhaps this is simply the evolution of real estate as owners become creative with how they use their spaces and the brands within. As for us shoppers, we love to be surprised and delighted, so for sure finding an unexpected brand as you meander around is always welcome.
Over the past few months, we’ve noted how consumers–particularly from lower-income trade areas–have started to migrate from QSR to value-grocers, dollar stores, and convenience stores. Against that backdrop, we wanted to examine visitation trends for QSR chains in the state of California, where a $20 per hour minimum wage law was put in place on April 1 for employees of fast-food chains with more than 60 locations nationwide (with some exemptions for smaller stores at grocery stores, airports, and entertainment venues). This represented a 25% increase from the previous minimum wage for fast-food employees of $16 per hour (which remains the state’s minimum wage for other categories except for workers in healthcare facilities, which also saw minimum wage increased to $20 per hour).
As a result of the minimum wage increase, most chains have raised prices in the region anywhere from the mid-single digits to the midteens. We compared year-over-year visit trends for QSR chains nationwide and California, and it’s clear that the menu price increase is having an impact. During February-March 2024 (we’ve excluded January due to inclement weather across much of the country), year-over-year QSR visit trends in the state of California had been running slightly ahead of national averages (below). However, this abruptly shifted when the minimum wage increase went into effect, with the nationwide visit trend year-over-year exceeding the state average seven of the eight weeks during the April-May 2024 timeframe.
We also see the impact at the chain level. Below, we’ve looked at year-over-year visitation trends for McDonald’s nationwide and in California (where about 9% of its restaurants are located) from February through May. Again, we see a situation where McDonald’s California was seeing roughly the same year-over-year visit trends as its national average during February-March but underperformed by almost 250 basis points after the minimum wage increase went into effect.
Our data indicates that QSR burger chains have generally been the hardest hit by the California increase in minimum wage and subsequent increase in menu prices. In addition to McDonald’s, we see that other large QSR burger chains in the state also underperformed their national average following the minimum wage increase. Chipotle–which raised menu prices by 6%-7% in California to help offset the minimum wage increase–also saw year-over-year visit trends in California underperform its national average in April and May.
It’s early, but we’re starting to see the ripple effect of the minimum wage increase across the broader restaurant industry. First, we’ve started to see some operators close locations in the state, especially chains that were already facing financial difficulties. Earlier this week, Rubio’s Coastal Grill shut down almost 50 locations in California and filed for Chapter 11 bankruptcy protection, citing “significant increases to the minimum wage in California” as a reason for closing the restaurants. Second, the minimum wage hike and subsequent increase in QSR menu prices may be benefitting casual dining chains (many of which were already paying above the new minimum wages for many employees). Below, we see that Darden’s Olive Garden concept and Brinker International’s Chili’s concept in California have outperformed their national averages with respect to year-over-year visit trends starting in April (below). Finally, the minimum wage increase could make it more costly to do business across other retail and restaurant categories, something we called out in our recap of 99 Cents Only going out of business.
As we discussed following this year’s National Restaurant Association show, casual dining has been making a comeback the past several months, with many chains accentuating value proposition through promotions. Chili’s has seen visitation trends outperform casual-dining category averages by a significant amount the past several weeks (below) through its value messaging, while Buffalo Wild Wings All-You-Can Eat wings promotions on Monday and Wednesdays starting in mid-May has been one of the more successful promotions that we’ve seen in the full-service restaurant category in some time. However, with several QSR chains starting to get more promotional ahead of McDonald’s planned $5 value menu promotion at the end of the month, it’s clear that QSR chains are looking to also emphasize value in the coming months, even while facing higher labor costs.
About the Mall Index: The Index analyzes data from 100 top-tier indoor malls, 100 open-air shopping centers (not including outlet malls) and 100 outlet malls across the country, in both urban and suburban areas. Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the country.
After a brief calendar-driven slowdown in April, May saw a resurgence in foot traffic to malls. Indoor malls led the way with an 8.6% YoY increase, followed by open-air shopping centers and outlet malls, which experienced YoY jumps of 6.2% and 5.7%, respectively.
This uptick is likely due to a variety of factors – from warmer weather to rising consumer confidence amidst slowly easing inflation. And malls’ particularly strong showing on two of May’s most important retail milestones – Mother’s day and Memorial day also helped propel the segment forward.
Taking a closer look at visit patterns to the three mall types on Mother’s Day and Memorial Day shows how significant these special days were for mall foot traffic. On Mother’s Day (May 12th), indoor malls, open-air shopping centers, and outlet malls saw respective visit spikes of 15.8%, 26.0%, and 11.4%, compared to an average year-to-date (YTD) Sunday. And Mother’s Day visits were up significantly YoY as well – further highlighting the category’s robust positioning.
All three mall types also saw impressive visit bumps on Memorial Day – this time compared to an average YTD Monday. The relative spikes were bigger across the board, since malls tend to be less busy on Mondays than on Sundays. But for outlet malls, Memorial Day visits really hit it out of the park – with foot traffic up by a whopping 123.3%. As a day off work featuring plenty of markdowns, Memorial Day is an ideal time to make the longer trip to an outlet mall and hunt for bargains.
And in another promising sign for the category, Memorial Day visits to all three mall types increased YoY – showing that despite continued headwinds, malls are still on the rise.
Comparing weekly mall visits to an early January baseline also shows the varying impact of different holidays on the three mall types.
On Easter, and even more so on Memorial Day – an extended weekend very much focused on savings – outlet malls won the day. On these holidays, shoppers may be more likely to have the time and state of mind to make a day of their shopping trip and lean into the treasure-hunting experience.
But on Mother’s Day, more upscale open-air shopping centers took the lead, as consumers embraced a more unique and luxurious shopping experience. Still, all three mall types drew increased traffic on the different special days – showing that each can benefit from a variety of calendar highlights.
Malls’ strong May performance – especially on the holidays – shows that shopping centers are on the upswing once again. This could be an encouraging sign for the category heading into the summer, and may hint at a promising shopping season during the warm months ahead.
For more data-driven retail insights, visit our blog at Placer.ai.
The Placer.ai Nationwide Office Building Index: The office building index analyzes foot traffic data from some 1,000 office buildings across the country. It only includes commercial office buildings, and commercial office buildings with retail offerings on the first floor (like an office building that might include a national coffee chain on the ground floor). It does NOT include mixed-use buildings that are both residential and commercial.
With summer nearly upon us, we dove into the data to see how the return-to-office fared in May 2024. Did the post-pandemic visit recovery trajectory observed in April continue apace? And which major regional hub saw the most YoY visit growth?
The office recovery is still very much underway. Visits to office buildings nationwide in May 2024 were just 32.2% lower than in May 2019 – and slightly higher than they’ve been during any other month since COVID. Year-over-year (YoY), office foot traffic in May increased by 8.6%.
And drilling down into the data for 11 major business hubs nationwide shows recovery continuing unabated throughout (most of) the country. For New York, Atlanta, Boston, Los Angeles, and San Francisco, May 2024 was the single busiest in-office month since February 2020. And for Miami, Washington, D.C., and Denver, it was the second-busiest month.
Consistent with recent trends, Miami continued to lead the post-COVID recovery pack, followed by New York: Foot traffic to the two cities was just 12.8% and 17.3%, respectively, below May 2019 levels.
But the data also contained some surprises. Atlanta, which saw the biggest YoY visit jump of any analyzed city, pulled into third place – outpacing Washington, D.C. And Houston, the only city to see a YoY decline in visits, fell significantly in the rankings.
Why did Houston YoY office visits drop in May? A look at weekly YoY visits to local office buildings confirms that this was likely due to the extreme weather that engulfed the city during the second half of the month. On Thursday, May 16th, Houston was hit by a particularly violent storm that caused significant damage to the downtown area – breaking windows, downing power lines, and leaving a battered city in its wake. Additional severe weather events pummeled the region as the month wore on – forcing many residents to hunker down at home. And it was when the storm hit that YoY visits began to turn negative, with the week of May 20th seeing a significant 20.0% drop. As the weather improves in the southeast Texas hub, office recovery will likely resume.
Five years after COVID upended office routines, employees and companies are still feeling out the ideal balance between WFH and in-person interaction. Will office attendance increase or decrease as the weather warms up?
Follow Placer.ai’s data-driven office analyses to find out.
With summer upon us, we dove into the data to explore Memorial Day foot traffic trends. How did people spend the long weekend? And how did major dining and retail categories fare on the holiday?
Gas stations were bustling on Friday, May 24th, as people filled their tanks in anticipation of a long, travel or activity-filled weekend. Visits to gas stations were up 32.3% compared to an average day this year – and the highest they’ve been since January 1st, 2024.
Year over year (YoY), gas station foot traffic increased 1.5%. And compared to pre-COVID, too, gas station visits were up 1.8% – showing that people are once again hitting the road, whether to go on weekend getaways or to visit nearby parks and attractions.
Indeed, Americans partake in many different activities on Memorial Day – from attending parades and memorial events to sight-seeing or enjoying the great outdoors. And visiting museums is a time-honored holiday tradition: On Monday, May 27th, museums nationwide drew a whopping 71.5% more visits than on an average Monday this year.
YoY, Museums were 1.6% busier on May 27th than in 2023 – and museum-goers spent more time exploring the exhibits (who says attention spans are decreasing?), browsing the gift shop, or fueling up at the cafeteria.
Memorial Day weekend is a prime time for picnics and barbecues. But for many Americans, it’s also an opportunity to enjoy a nice meal at a restaurant with friends and family.
Like on Mother’s Day, full-service restaurants get a much bigger Memorial Day visit boost than either fast-casual eateries or fast-food (QSR) joints. But all three dining segments enjoyed a significant YoY holiday visit increase this year – proving that despite still-high food-away-from-home prices, people are finding room in their budgets to treat themselves on their day off.
And the last Monday in May is, of course, a big day for savings, on everything from big-ticket items like mattresses, furniture, and major appliances, to clothing and other discretionary items. This year, apparel stores saw the biggest Memorial Day visit spike, with foot traffic up 40.5% compared to an average day and 88.2% compared to an average Monday. But home furnishing stores, home improvement stores, electronics retailers, and (to a lesser extent), grocery stores, all experienced considerable holiday visit spikes of their own.
And comparing Memorial Day retail activity to last year shows most of the analyzed categories seeing minor visit increases or holding steady – no small feat in today’s challenging retail environment. Like dining segments, grocery stores impressed with a 9.3% YoY visit increase – perhaps buoyed by consumers buying last-minute ingredients for their picnics or barbecues.
People were on the move this year on Memorial Day – fueling up their cars, and enjoying museums, restaurants, and retail sales. What does the rest of the summer hold in store for American consumers?
Follow Placer.ai’s data driven analyses to find out.
Known as the entertainment capital of the world, Las Vegas has always been a tourist hotspot. But for a growing segment of the population, Vegas is also becoming a popular place to lay down permanent roots. We dove into the tourism and migration data for the region in order to take a closer look at Las Vegas’ changing visitor and resident populations.
Like many vacation destinations, Las Vegas took a significant tourism hit at the onset of COVID. But with travel restrictions now a thing of the past, visitation to Las Vegas is roaring back.
Analyzing travel to Las Vegas using the Travel & Tourism Report shows that since the halfway mark of 2023, the total number of visit nights spent by travelers in the city (i.e. by those staying up 31 days) have consistently outperformed pre-pandemic levels. And with the sole exception of July 2023, visit nights have increased year-over-year (YoY) as well.
Alongside robust demand for experiences, investment in new, one-of-a-kind entertainment venues like the Sphere – which opened towards the end of 2023 – has likely played a part in reigniting tourism.
Who are the tourists driving this comeback? To explore the demographic characteristics of today’s visitors to Las Vegas, we zoomed in on the Las Vegas Strip – the iconic epicenter of it all, where most of the city’s luxury hotels, shops, restaurants, and casinos are concentrated.
Analysis of the Strip’s captured market with demographic data from AGS: Demographic Dimensions reveals that as tourist activity in the city began to pick up again, the median household income (HHI) of visitors to the Strip increased steadily. In Q1 2024, the median HHI of visitors to the Strip reached $93.0K, perhaps aided by tourism surrounding this year’s Super Bowl.
This indicates that the Strip is becoming a more upscale visit destination, and that demand for Vegas’ luxury offerings are driving visits. As more consumers with ample discretionary dollars make their way to Vegas, pricey shows – in addition to retail – are likely to become ever-more lucrative advertising opportunities.
A tourism boom isn’t the only phenomenon making waves in Sin City. In recent years, more and more out-of-towners have made Greater Las Vegas their home, and unlike some pandemic-era migration hotspots, Las Vegas continues to attract new residents.
Migration data indicates that many of those moving in are high-earners who are likely incentivized by the cost of living and tax benefits in the region.
Between December 2019 and December 2023, the Las Vegas-Henderson-Paradise CBSA experienced net-positive domestic migration of 3.9%. In other words, the total number of people that moved to Las Vegas over the four-year period from elsewhere in the U.S., minus those that left, was equivalent to 3.9% of the region’s December 2023 population. Meanwhile, analysis of the CBSA’s origin to destination HHI ratio reveals that between December 2019 and December 2023, the median HHI of incoming residents was 20% higher than the median HHI of the local population.
And comparing migration data in December 2023 to December 2020, 2021, and 2022, revealed consistently positive net migration and origin to destination HHI ratios in the years since 2019. This indicates that the Las Vegas-Henderson-Paradise CBSA continues to attract many new and affluent residents. When planning future amenities and services, the region may want to take into account the opportunities – and challenges – presented by these population shifts.
Be it for a quick trip or full-on relocation, Las Vegas remains a prime destination in both the U.S. tourism and domestic migration landscapes. New entertainment venues and amenities keep Vegas top-of-mind for upscale vacationers while economic incentives drive moves from a high-income cohort.
For more tourism and migration insights, 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.
