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The broader restaurant industry continues to navigate a challenging economic environment, and rising gas prices have made value perception an even more important factor for consumers in determining where – and how – they choose to eat. With fuel costs remaining elevated throughout May 2026, we turned to the latest Placer.ai Dining Index data to assess how different dining segments performed and whether these emerging trends continued to gain momentum.
Dining traffic in May 2026 painted a mixed picture for the restaurant industry. Visits to full-service chains rose year-over-year (YoY) after two consecutive months of declines, likely benefiting from both Mother's Day and a favorable calendar shift. May 2026 included five Sundays compared to four in May 2025 – a subtle but meaningful tailwind for sit-down dining. The rebound suggests that even amid a challenging economic backdrop, consumers remain willing to spend on special occasions.
At the same time, pressure continued to build in the more value-oriented dining segments. QSR visit declines widened YoY, while fast-casual traffic growth slowed. Together, these trends provide additional evidence that persistent inflation and tighter household budgets are weighing on consumer behavior – particularly among the typically value-conscious audiences of QSR and fast casual chains.
Some of the weakness in QSR traffic – and even the slowdown in fast casual growth – may be tied to shifting consumer preferences around drive-thru usage and other convenience-based ordering channels
Location intelligence reveals that sub-10-minute visits to the two limited-service segments have underperformed compared to overall visits for several months. And in May 2026, short visits to QSR chains fell sharply YoY, while short visits to fast casual chains also decreased – their first such decline of 2026. The drop in visits under 10 minutes to both segments – a duration typically associated with drive-thru, but also pickup, and delivery orders – suggests that diners are not only looking to reduce fuel consumption but are increasingly prioritizing the experience of dining out over the convenience of picking up food to go.
With summer travel season around the corner and some modest relief at the pump beginning to emerge, drive-thru traffic, for its part, could shift into a higher gear in the weeks and months ahead.
May's dining data highlights a growing divide within the restaurant industry. While consumers continue to make room for special-occasion dining, value-oriented segments face mounting challenges as economic pressures persist. And with short-duration visits declining across both QSR and fast casual chains, elevated fuel costs may be reshaping how consumers approach their favorite chains.
For the latest dining insights, visit Placer.ai/anchor.
Following five consecutive quarters of declining same-store sales, Wendy's has appointed Robert D. “Bob” Wright – fresh off a successful turnaround at Potbelly – to steer the Dublin, Ohio-based chain back to growth. Can Wright work his magic once again? We dove into the data to understand what it will take to engineer another comeback.
Wendy's appointment of Bob Wright is rooted in his success leading Potbelly through a strong post-pandemic recovery. During Wright's tenure, Potbelly outperformed the broader fast-casual segment, while Wendy's has struggled to keep pace with the QSR industry's recovery – and Wendy's is likely betting that Wright can bring a similar turnaround playbook to Wendy's.
But whether Wright can replicate his success at Potbelly depends, in part, on what's driving Wendy's current challenges.
While macroeconomic headwinds have pressured value-oriented restaurant spending, they do not fully explain Wendy’s recent traffic struggles.
Wendy’s, McDonald’s, Burger King, and Taco Bell all attract visitors from trade areas with similar median household incomes, yet Wendy’s has been the only chain to consistently post substantially weaker same-store visit performance over the past year.
Cross-visitation data further suggests that Wendy's challenges extend beyond macroeconomic headwinds. Since 2019, Wendy's customers have become increasingly likely to visit competing restaurant chains, indicating that the brand may be losing differentiation in an increasingly crowded market.
The encouraging news for Wendy's is that the traffic data points to several areas of underlying strength. If Wendy's can reconnect with consumer segments and dayparts where it has historically demonstrated traction, it may be able to reignite growth without fundamentally reinventing the brand.
On the demographic front, AI-based location analytics suggests that Wendy's may already possess an advantage that many restaurant chains are trying to build – a meaningful connection with younger consumers. Compared to the broader QSR industry, Wendy's captured market includes a larger share of younger, nonfamily households, indicating that the brand has established a stronger foothold among Gen Z and younger millennials than many of its peers.
So rather than trying to fundamentally reshape its customer base, Wendy's may have a greater opportunity to build on an audience that is already engaging with the brand. The success of initiatives such as the SpongeBob SquarePants collaboration demonstrates how culturally relevant campaigns can translate that engagement into traffic gains, giving Wendy's a potential blueprint for strengthening its relevance with younger consumers even further.
At the same time, the chain also overindexes on older consumers, positioning it to appeal to two demographic groups that many brands struggle to reach simultaneously. This positions the brand to appeal to two demographic groups that many restaurant concepts struggle to reach simultaneously and may create opportunities across multiple dining occasions. In particular, older consumers could represent a valuable audience for breakfast, a daypart where Wendy's has historically invested heavily but has recently begun to pull back.
Indeed, Wendy's has recently allowed some franchisees to reduce breakfast hours as demand has softened across the industry. Yet the data suggests that the brand's breakfast's challenges are not solely a function of weakening consumer demand for QSR breakfast – Wendy's morning traffic has fallen substantially faster than the category as a whole, pointing to a meaningful share loss.
That dynamic – especially given the brand's overindexing among older diners – raises questions about whether further retrenchment is the right long-term strategy. Even though breakfast accounts for a relatively small share of overall visits (less than 9% of Wendy's visits take place between 6 AM and 10 AM) abandoning the daypart risks accelerating traffic declines, and it is not clear that consumers who stop visiting Wendy's for breakfast will simply shift their visits to lunch or dinner. Instead, targeted efforts to improve breakfast awareness, relevance, and differentiation could help Wendy's close one of its largest performance gaps and recapture incremental visits that might otherwise be lost to competitors.
While Wendy's challenges are real, location analytics suggest that the chain is far from starting from scratch. Between its established appeal among younger consumers, its strength with older diners, and a breakfast business that still has room to improve, Wendy's has several levers it can pull to regain momentum. If Bob Wright can apply the same combination of focus, differentiation, and disciplined execution that fueled Potbelly's turnaround, Wendy's may be better positioned for a comeback than recent traffic trends suggest.
For more data-driven dining insights, visit placer.ai/anchor.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
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May 2026 brought a fresh round of return-to-office (RTO) pressure – PNC Financial's five-day mandate took effect at the start of the month, while EY told its U.S. tax teams to plan for more in-person time this summer. Both join a growing list of employers tightening face-time policies. At the same time, gas prices climbed to an average of $4.61 in May, making the commute more expensive for employees who drive to work.
How did these competing forces play out on the ground? Did the office recovery continue, or was May the first month this year to show signs of slowing down? We dove into the data to find out.
At first glance, May's results suggest a slowdown. Total visits to the Placer.ai Nationwide Office Index were 38.6% below May 2019 levels and 1.2% below May 2025.
But the apparent weakness is largely explained by the calendar. May 2026 included only 20 working days, compared to 21 in May 2025 and 22 in May 2019. When adjusting for business days, visits were actually 3.7% higher than last year and just 32.4% below the 2019 baseline – compared to 34.9% for May 2025. In other words, May 2026 was the busiest May for per-working-day office attendance since the pandemic, extending the streak in which every month so far this year has set a post-pandemic high for its respective calendar month.
Still, even when normalized, the pace of YoY growth was modest, suggesting that higher commuting costs may be tempering some of the gains from ongoing return-to-office initiatives.
Nationwide Office Index, May 2026
The same calendar effect carried across the major markets, where most cities showed year-over-year declines on raw visits that turned positive once working days were accounted for. San Francisco led the year-over-year (YoY) field, with per-working-day visits up 8.2% – tracking the city's AI-driven leasing recovery. With its strongest leasing quarter this year since 2014, declining office availability, and robust net absorption, the city appears increasingly well-positioned to sustain its momentum.
Los Angeles followed at +6.5% YoY per working day, with Dallas, Chicago, Miami, New York, and Boston all in positive territory. Only three markets stayed slightly negative: Denver, down 1.4% from a year ago, Houston, down 0.6%, and Washington, D.C., essentially flat at -0.1%.
Denver's continued softness likely reflects the same dynamics noted last month – a particularly remote-friendly labor market and record-high downtown vacancy. Still, improving net absorption and gradually strengthening demand for Class A office space may portend stronger visitation trends in the months ahead. Houston's slight decline, meanwhile, may partly stem from contraction in its dominant energy sector, where major employers such as Chevron have reduced local headcount.
On the longer view versus 2019, the RTO rankings held their usual shape. Miami remained the clear leader, sitting 11.0% below its pre-pandemic baseline on a per-working-day basis, with New York next at 18.3% below. Denver finished last once more, down 48.4% from 2019. And San Francisco held onto third-to-last position, showing how far it has come from its former status as the nation's weakest-performing office market.
The pace of office recovery moderated in May, but the calendar accounted for most of the apparent weakness. On a per-working-day basis, office attendance continued to rise, with gains recorded across most major markets.
Whether lower gas prices or additional RTO mandates will reignite a faster recovery later in the year remains to be seen. For now, however, the data suggests that office utilization continues to inch upward, even as the pace of improvement becomes more gradual.
For more data-driven office recovery analyses, visit Placer.ai/anchor.
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
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Despite reports of record-low consumer sentiment in May 2026, consumer foot traffic increased year-over-year across all mall formats in May, marking the second straight month of gains and the fourth positive month of 2026.
Some of May's gains may be attributable to a calendar shift. May 2026 included one additional Sunday and one fewer Thursday than May 2025 – and because Sundays typically generate stronger mall traffic than Thursdays, the difference in weekday composition likely provided a tailwind for visitation.
Still, even after adjusting for differences in weekday composition, YoY traffic growth remained positive for both indoor malls and open-air centers. Even outlet malls – which typically require longer drives and cater to less affluent shoppers – maintained traffic levels in line with last year despite ongoing economic pressures.
Year-over-Year Change in Average Daily Visits by Weekday and Mall Format, With Each Format's Calendar-Normalized Monthly Trend
Bars show the year-over-year change in average daily visits for each weekday; dashed lines show each format's calendar-normalized monthly figure.
The stable-to-positive mall visitation trends are particularly notable given the broader discretionary retail environment, where consumer traffic has declined YoY since mid-April as rising gas prices and economic uncertainty have begun to weigh on spending behavior.
What is setting malls apart? One potential explanation is that mall visits and traditional retail spending are increasingly decoupled. Unlike standalone retail stores, malls serve a variety of purposes beyond shopping, including dining, fitness, entertainment, and socializing. As a result, consumers may be scaling back purchases of discretionary goods without materially reducing their mall visits. And while they may be spending less on apparel, accessories, or other retail categories, they may still be spending money within the mall ecosystem through restaurants, entertainment venues, and other services.
But that does not necessarily mean that mall traffic is disconnected from retail demand – as mall resilience may also simply be a reflection of the ongoing bifurcation of the U.S. consumer. Compared to the broader discretionary retail sector, malls draw from more affluent trade areas, giving them greater exposure to households that have remained relatively insulated from recent economic pressures. In this view, consumers are not simply visiting malls for non-retail activities – they are continuing to shop there as well. The combination of a more affluent customer base and an increasingly diversified mix of uses may help explain why mall traffic has remained resilient even as visitation across much of discretionary retail has softened.
While economic uncertainty and weak consumer sentiment are likely to remain headwinds in the months ahead, recent traffic data suggests that malls continue to occupy a unique position within the retail landscape. As malls increasingly blend retail, dining, entertainment, and services – and continue to attract relatively affluent consumers – the sector may remain better positioned than much of discretionary retail to weather a more challenging consumer environment.
A common theme that spanned across the post-pandemic period of the retail industry has been resilience. Each time consumers throughout the United States faced adversity, they seemed to come back even stronger, often defying logic and expectations. Revenge spending often became the norm for many shoppers over the past six years, even as consumers accumulated mounting debts, utilized buy-now-pay-later services, and faced steep price increases due to tariffs and inflation. It has led to the question or if – or when – consumers might finally reach their breaking point.
The answer to that question might just be revealing itself to the retail industry in real time. In the face of rising prices across retail goods, services, and gasoline – particularly since the outbreak of the Iran War – consumers appear to be finally hitting the pause button on retail visitation in a stark way.
This coincides with another sobering statistic regarding consumer sentiment. According to the University of Michigan’s Monthly Survey of Consumers, which tracks consumer sentiment over time since the 1950’s, the May 2026 sentiment index fell to 44.8 – the lowest sentiment recorded since the inception of the survey. Consumers are feeling the pressure in all aspects of life, and their outlook is bleak on areas like the economy and their personal financial situations.
Despite the somewhat strong start to retail visitation in 2026, partially due to favorable comparable periods against early 2025, since mid-April there has been a noticeable change in retail traffic, both to discretionary and non-discretionary sectors. According to the same consumer sentiment index, April stood at 49.8, which was down 4 points from March.
While visitation to the Placer 100 Index, which includes 100 of largest retail chains across the U.S., and non-discretionary retail categories are still showing slight growth year-over-year, discretionary categories have declined. At the same time, it should be remembered that this period is being compared to last year’s pre-tariff rally among shoppers, which may also be impacting discretionary consumption.
Still, discretionary purchases are a logical place for the consumer to begin altering their consumption, especially for lower and middle-income shoppers who might be disproportionately impacted by rising fuel costs. Even with value-based options – like off-price retail – anything that is considered a “want” vs. a “need” are being reconsidered.
Waning consumer sentiment and increased economic uncertainty can both spur this change in behavior, and with sentiment at a record low, it’s clear that shoppers are trying to save instead of splurge right now.
For more data-driven consumer insights, visit placer.ai/anchor
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
We recently attended the 2026 National Restaurant Association Show in Chicago, and the mood on the floor reflected an industry navigating a more complicated demand environment than it faced a year ago. With gas and grocery prices ticking higher over the past few months, consumers are once again tightening their belts and scrutinizing every dining decision, leaving operators to fight harder for share of stomach against a wider range of food retailers. Yet despite the headwinds, the show also surfaced plenty of bright spots: some chains are still driving traffic gains through new products, sharper value messaging, and operational improvements – from menu innovation to loyalty and tech-enabled efficiency – that are resonating with cautious diners. The takeaways below unpack where the pressure is greatest, who's breaking through anyway, and what it all signals for the back half of 2026.
Placer’s visitation trends reinforce this uncertain consumer environment. Below, we show weekly year-over-year visit trends for the QSR, fast casual, casual dining, and fine dining categories. After a strong start to February – partly the result of lapping the macroeconomic uncertainty a year ago amid the initial tariff announcements – visitation trends for the QSR, fast casual, and casual dining segments have generally fallen year-over-year (YoY) the past few months. Meanwhile, visits to fine dining restaurants have generally increased YoY, with affluent consumers feeling more confident about the macroeconomic environment given recent stock market highs.
Even as caution returned to the consumer, several chains showcased at and around the show stood out as clear traffic winners through Q1. In fast casual, CAVA continued to look like the category's runaway story, posting 9.7% same-restaurant sales growth driven by a striking 6.8% jump in guest traffic – outpacing peers including Chipotle, which has been working through a "Recipe for Growth" turnaround after stretches of negative comps.
In the burger and Mexican QSR space, Burger King delivered a 5.8% U.S. comp gain in Q1 – its biggest lift in years – fueled by family-friendly SpongeBob and Mandalorian tie-ins, while Taco Bell once again served as Yum! Brands' growth engine, leveraging sharp value pricing, steady menu innovation, and a deep digital loyalty program to broaden its appeal across income cohorts.
Coffee was also a frequent topic of conversation at the 2026 NRA Show. Dutch Bros has now strung together five-plus quarters of traffic-led same-store sales gains and is rolling out hot breakfast nationwide. Meanwhile, 7 Brew has emerged as the segment's hottest growth story – posting eye-popping traffic gains and on pace to add more than 400 units in 2026 alone – even as Starbucks continues to navigate a turnaround under CEO Brian Niccol.
Regional QSR burger favorites are pressing their advantage as well. In-N-Out is pushing into Tennessee, Washington, and other new markets, Whataburger continues to extend its footprint outside the Southeast, and Culver's is rolling out a series of menu, technology, and experience updates aimed at sustaining the cult-like loyalty that has long set these regional players apart. In fact, Culver’s might be the story of the QSR category right now, posting same-store visits that ranked among the upper echelon of QSR chains during the first quarter.
One of the most persistent themes at this year's show was that restaurants are no longer just competing with each other for share of stomach. Grocery stores, convenience chains, and warehouse clubs are rapidly upgrading their prepared food offerings, and in many cases capturing everyday meal occasions that restaurants once owned.
Grocery retailers are expanding prepared foods and meals-on-the-go and positioning them as a more affordable alternative to both home cooking and a drive-thru run, while c-stores like 7-Eleven, QuikTrip, and Wawa have invested heavily in made-to-order menus, full kitchens, and even branded QSR partnerships that increasingly rival traditional fast food. Warehouse clubs are pushing in the same direction – Sam's Club, for example, is rolling out fresh, ready-to-serve meals – leaving restaurant operators to defend their turf against a much broader, and noticeably hungrier, retail food ecosystem. YoY visit trends for the QSR category have underperformed other food-at-home categories like grocery stores and superstores over the past twelve months, underscoring this meaningful channel shift.
Taken together, the 2026 show painted a picture of an industry at an inflection point. The tailwinds of pent-up post-pandemic demand have given way to a more discerning consumer, a wider competitive set, and thinner margins for error. The chains that are winning share are doing so with a clear playbook: relevant menu innovation, disciplined value, sticky loyalty, and operational investments that make the experience faster and easier.
As we head into the back half of 2026, the gap between the operators executing on those fundamentals and those still searching for an answer is likely to widen further. The pressure on the industry is real, but so is the opportunity – and the brands willing to keep adapting to where the consumer is actually headed should remain well-positioned to come out ahead.
For more data-driven insights, visit placer.ai/anchor
Placer.ai leverages a panel of tens of millions of devices and utilizes machine learning to make estimations for visits to locations across the US. The data is trusted by thousands of industry leaders who leverage Placer.ai for insights into foot traffic, demographic breakdowns, retail sale predictions, migration trends, site selection, and more.
1. Experiential and niche retailers can deliver anchor-level traffic. At Towne East Square Mall, the addition of a Scheels in 2023 significantly increased foot traffic and long-distance travelers, while Barnes & Noble at Coronado Center in Albuquerque has become a key driver of both foot traffic and higher-spend demographics.
2. Size isn’t everything – especially for dining venues. At Glendale Galleria and Northridge Fashion Center, smaller restaurants attracted more foot traffic than some traditional anchors.
3. Refocusing on tenants’ actual traffic contributions enables a flexible anchor approach. Balancing weekend draws like Scheels with weekday favorites such as Costco or Chick-fil-A can help maintain steady visitor flow throughout the week. Similarly, onsite fitness clubs can shift traffic to earlier in the day – an opportunity to adjust store hours and capture additional morning shoppers.
4. Temporary pop-ups can form an integral part of a visit-focused anchor strategy. The Barbie Dreamhouse Living Truck Tour generates mall visit spikes well above typical Saturday levels. Operators can integrate these events into their overall anchor strategies, offering preferential terms to high-performing pop-ups.
5. New tenants can boost traffic for existing stores in similar categories. After Aldi joined Green Acres Commons in February 2020, visits to an existing BJ’s Wholesale Club trended upwards. This synergy highlights how overlapping audiences can become a strength, creating a larger overall customer base.
Malls, it seems, are cool once again. After languishing in the wake of the pandemic, shopping centers across the country are thriving – reinventing themselves as prime “third places” where people can hang out, shop, and grab a bite to eat.
One key driver behind this resurgence is a shift in how malls view their anchor tenants. While traditional mainstays like Macy’s and JCPenney still play an important role, specialized offerings – from popular eateries to fitness centers and immersive retailtainment destinations – are increasingly taking center stage. These attractions maximize the experiential value that brick-and-mortar venues can deliver, driving visits and sales for the center as a whole.
Against this backdrop, this report leverages the latest location intelligence data to explore the types of tenants that can function as mall anchors in 2025. Should mall operators still focus on general merchandisers to draw crowds, or can dining chains and more niche retailers also do the job? How important is square footage in identifying the anchor-like tenants in a shopping center? And how can a visit-focused approach help mall operators select effective anchor or anchor-like tenants – whether to fill big-box spaces or to leverage the leasing perks traditionally reserved for major large-format chains?
One of the most important functions of a mall anchor is to ensure steady visitation – providing its smaller tenants with a constant flow of potential customers. And as the role of the mall continues to evolve, analyzing the actual foot traffic impacts of different types of businesses can help identify the kinds of non-traditional anchors best suited to fulfill that purpose.
Experiential venues, for example, are particularly well-poised to serve as powerful anchors in today’s retail environment – as illustrated by the visit surge experienced by Towne East Square Mall in Wichita, KS following the addition of a Scheels in July 2023.
By blending traditional retail with immersive experiences, Scheels has emerged as a true experiential destination. And this pull has also helped the mall draw more long-distance visitors willing to travel to enjoy Scheels’ offerings. In 2024, 41.9% of the mall’s customers traveled more than 50 miles to visit, compared to 35.8% back in 2018 when Sears occupied the same lot.
Traditionally, anchors aimed to please the widest possible audiences – with department stores, big-box chains, and grocery stores leading the way. But visitation data shows that niche concepts can also deliver anchor-level traffic if they’re compelling enough to attract dedicated fans.
The experience of the Barnes & Noble at Coronado Center in Albuquerque, NM is a case in point. After being written off as all but obsolete, Barnes & Noble has staged an impressive comeback in recent years, finding success through a more curated, localized approach to book selling. And despite not being a formal anchor, the Coronado Center Barnes & Noble accounted for 7.9% of visits to the mall in 2024 – outperforming both Macy’s and JCPenney.
Year-over-year data also shows foot traffic surging at the Coronado Center Barnes & Noble, lifting overall visitation to the mall. And demographic data reveals that the bookstore draws a more affluent audience than either the center as a whole or the two department stores – attracting a crowd with more spending power.
This example also illustrates how smaller tenants can sometimes draw larger crowds. Even though Barnes & Noble occupies a smaller onsite space than either Macy’s or JCPenney, it is proving a powerful visit driver out of proportion to its physical size.
Dining chains are also adept at punching above their square footage – often attracting crowds disproportionate to their size.
Despite its relatively small footprint, for example, the In-N-Out Burger at Glendale Galleria drew an impressive 8.6% of visits to the mall complex in 2024, outpacing some of the mall’s official anchors like DICK’s Sporting Goods, Macy’s, and JCPenney. Still, the onsite Target drew even larger crowds at 14.4% of visits.
A similar pattern emerged at Northridge Fashion Center, where Porto’s Bakery and Cafe captured a notable 15.6% of visits to the complex in 2024 – more than some of the center’s traditional department stores.
These examples underscore the potential for dining chains, which typically require less space, to serve as micro-anchors by consistently attracting outsized crowds – a key consideration for mall operators looking to sustain visitor traffic.
Refocusing on tenants’ actual foot traffic contributions also opens the door to a more flexible and dynamic approach to anchor selection and management – one that considers each venue’s unique visitation patterns.
Seasonal factors, for example, can make certain anchors more powerful at specific times of the year, while different venues shine on particular days of the week.
At Jordan Creek Town Center in West Des Moines, Iowa, for instance, Scheels and Costco each delivered just under 20.0% of the complex’s overall visits in 2024. But the two retailers’ daily patterns differed significantly: Scheels saw bigger crowds on weekends, while Costco was the primary weekday destination.
Understanding differences like these can help operators optimize their tenant mix to maintain a balanced flow of shoppers throughout the week.
Another example of the impact of differing weekday traffic patterns is offered by the impact of mall-based Chick-fil-A locations on the distribution of mall visits throughout the week.
Despite its relatively small size, Chick-fil-A draws substantial traffic to malls. And after adding Chick-fil-A locations, both Northridge and Miller Hill Malls saw meaningful drops in the share of visits to the centers taking place on Sundays – even as the wider indoor mall segment saw slight upticks.
Recognizing this trend could prompt mall operators to compensate by adding more weekend-friendly traffic drivers – or to lean into this distinction by taking additional steps to bolster the mall’s role as a go-to weekday destination.
The power of different mall traffic magnets also varies throughout the day. Increasingly, shopping centers are turning to fitness centers as experiential anchors. And since many people work out early in the morning, these gyms are having a significant impact on the distribution of mall visits across dayparts.
The addition of gyms to Northshore Mall in Peabody, MA and Jackson Crossing in Jackson, MI, for instance, led to a significant rise in visits between 7:00 AM and noon. And though the rest of the stores in these malls typically open at 10:00 or 11:00 AM, this shift presents the centers with a significant opportunity.
By adjusting opening hours to accommodate these early-morning patrons, malls can capitalize on this added traffic, driving up visits and sales for relevant tenants – especially health-focused retailers such as juice bars and sporting goods stores.
Adopting a broader, visit-focused view of anchoring also allows mall operators to apply some of the strategies typically reserved for anchors to non-conventional traffic-generating businesses, to ensure a consistent flow of traffic year-round.
Pop-up stores and events, for example, generally don’t follow the same seasonal trends as other retailers – instead, they generate short-term visit boosts during their runs, whenever in the year that may be. And a visit-focused anchor strategy can leverage some of the perks traditionally reserved for anchor tenants – such as preferential leasing terms – to complement traditional full-time anchors during slower retail periods.
The Barbie Dreamhouse Living Truck Tour is a prime example of a traffic-driving pop-up. By bringing exclusive merchandise to malls across the U.S., the truck generates plenty of buzz, drawing crowds eager to snatch up limited-edition items and immerse themselves in all things Barbie. As a result, malls hosting the tour often see significant visit spikes, with foot traffic surging well above typical Saturday levels. Well-timed pop-ups like these can help balance out traffic throughout the year, offsetting traditional slow periods.
A visit-focused approach to anchor management can also help mall operators assess the potential impact of new tenants on existing stores operating in similar categories. For example, mall owners often worry that new tenants operating in similar categories might cannibalize existing businesses. But a visit-focused anchor approach reveals that a well-chosen addition can sometimes benefit current tenants – especially if they cater to similar audiences.
In February 2020, for instance, value supermarket Aldi opened at Green Acres Commons in Valley Stream, NY – a center that already hosted budget-friendly BJ’s Wholesale Club. While BJ’s visits were relatively flat in 2018 and 2019, they began to rise after Aldi’s opening (and following a pandemic-induced dip). Cross-shopping data also shows that Aldi customers were more likely to visit BJ’s than the average Green Acres patron last year.
This synergy may be due in part to the two retailers’ similar visitor bases: In 2024, the Aldi and BJ’s stores in Green Acres Common drew shoppers with comparable economic profiles. This suggests that overlapping audiences can become a strength if aligned brands attract new shoppers, who then explore multiple stores in the same center.
Looking ahead, effective mall anchors will be defined less by physical footprint and more by their capacity to maintain consistent, valuable foot traffic. While traditional department stores remain pivotal, smaller or niche brands can often rival – or surpass – large-format retailers. And by thinking out of the anchor box and choosing tenants that cultivate a balanced visitor flow and align with local preferences, operators can position their centers as true go-to destinations.
1. Shoppers are taking more, shorter trips to grocery stores. Over the past 12 months, grocery stores have experienced nearly uniform YoY visit growth. And since COVID, the segment has steadily increased both overall visits and average visits per location – even as average dwell times have consistently declined.
2. Grocery stores are holding ground against fierce competition. Despite growing inroads by discount and dollar stores, wholesale clubs, and general mass retailers like Walmart and Target, grocery stores have maintained their share of the overall food-at-home visit pie over the past several years.
3. Grocery visit share is most pronounced on the coasts. In Q1 2025, grocery stores claimed the majority of food-at-home visits on the West Coast, in parts of the Northeast, Mid-Atlantic, and Mountain Regions, and in Florida and Michigan.
4. Fresh-format, value, and ethnic grocery visit shares are growing at the expense of traditional chains. And in Q1 2025, fresh-format and value grocers outperformed the other sub-segments with positive YoY visit and average visit-per-location growth.
5. Hispanic markets are on the rise. Though the broader ethnic grocery sub-segment was essentially flat YoY in Q1 2025, Hispanic-focused stores recorded increases in both visits and visits per location – and have been steadily growing visits since 2021.
6. Smaller formats for the win. In Q1 2025, smaller-format grocery store locations outpaced mid-sized and larger-format ones, underscoring the power of compact spaces to deliver significant foot traffic gains.
Brick-and-mortar grocery stores face an uncertain market in 2025. Rising food-at-home prices (eggs, anyone?), declining consumer confidence, and increased competition from discounters, superstores, and online shopping channels all present the segment with significant headwinds. Yet even in the face of these challenges, the sector has demonstrated remarkable resilience – growing its foot traffic and holding onto visit share.
What strategies have helped the segment navigate today’s tough market? And how can industry stakeholders make the most of the opportunities in the current market? This report draws on the latest location intelligence to uncover the trends shaping grocery retail in early 2025 – highlighting insights to help key players make informed, data-driven decisions on store formats, product offerings, and more.
The grocery segment has experienced nearly uniform positive year-over-year (YoY) growth over the last 12 months. This sustained performance in the face of inflation and other headwinds highlights the underlying strength of the category.
What is driving this growth? Since 2022, the grocery segment has seen consistent overall visit growth that has outpaced increases in visits per location – a sign that chain expansion has played a key role in the category’s success. But the average number of visits to each grocery store has also been on the rise, indicating that the segment continues to expand without cannibalizing existing store traffic.
At the same time, visitor dwell times have been steadily dropping since 2021. This shift appears to reflect a trend towards multiple, shorter trips by inflation-wary consumers eager to avoid large, costly carts or cherry pick deals across various retailers. Many shoppers may also be placing more bulk orders online and supplementing those deliveries with brief in-store stops for additional items as needed.
The bottom line: Shoppers are taking more grocery trips overall each year, but spending less time in-store during each visit. Operators can respond to this trend by optimizing layouts and promoting “grab-and-go” areas for an even more efficient quick-trip experience.
Visit share data also shows that despite fierce competition from discount and dollar stores, wholesalers, and general mass retailers, the grocery segment has steadfastly preserved its share of the overall food-at-home visit pie.
Between Q1 2019 and Q1 2025, wholesale clubs and discount and dollar stores increased their share of total food-at-home visits, gains that have come primarily at the expense of Walmart and Target. Meanwhile, grocery outlets have held firm – despite some fluctuations over the years, their Q1 2019 visit share remained essentially unchanged in Q1 2025.
So even as consumers flock to alternative food purveyors in search of lower prices, grocery stores aren’t losing ground – and on a nationwide level, they remain the biggest player by far in the food-at-home shopping space.
Still, grocery store visit share varies significantly by region. On the West Coast, in parts of the Northeast, Mid-Atlantic, and Mountain regions, and in Florida and Michigan, grocery stores accounted for the majority of food-at-home visits in Q1 2025. Oregon (61.6%) and Washington (59.6%) led the pack, followed by Massachusetts (59.2%), Vermont (58.5%), and California (57.9%). Meanwhile, in West Virginia, Arkansas, South Dakota, Oklahoma, North Dakota, and Mississippi, less than 30% of food-at-home traffic went to grocery stores, with more shoppers in these regions turning to general mass retailers or discounters.
Grocery store operators in lower-grocery-share regions may choose to focus on price competitiveness and convenient store locations to capture more foot traffic from competitors in the space.
Which types of grocery stores are thriving the most? The grocery segment is diverse, encompassing traditional grocery chains like Kroger, Safeway, and H-E-B; budget-oriented value chains such as Aldi, WinCo Foods, Grocery Outlet Bargain Market, and Market Basket; fresh-format specialty brands like Trader Joe’s, Whole Foods, and Sprouts Farmers Market; and numerous ethnic grocers.
Examining shifts in visit share among these various grocery store segments shows that traditional grocery still dominates, commanding over 70.0% of total grocery store foot traffic.
Still, over the past several years, traditional grocers have gradually ceded ground to other segments – especially value chains. Budget grocers saw a temporary surge in visits during the panic-buying days of early 2020 – and have been more gradually gaining visit share since Q1 2023. . Fresh-format banners, which lost ground in 2021 after a Q1 2020 bump, in the wake of COVID, have also been on the upswing and appear poised to capture additional visit share in the coming months and years. And though ethnic grocers still account for a relatively small portion of the overall market, they have slightly increased their visit share, reflecting heightened consumer interest in these specialized offerings.
Recent performance metrics point to a bifurcation in the grocery market similar to that observed in other retail categories. In Q1 2025, fresh-format and value retailers – which appeal, respectively, to the most and least affluent visitor bases – saw the greatest growth in both overall visits and average visits per location.
This trend highlights the power of both value and health-focused quality to motivate consumers in 2025. And grocery players that can meet these needs will be well-positioned for success in the months ahead.
One factor fueling fresh-format’s success may be its role as a convenient, relatively affordable midday lunch destination for the remote work crowd.
In Q1 2025, consumers working from home accounted for 20.2% of fresh-format grocery stores’ captured market – a significantly higher share than any other analyzed grocery segment. These stores also tended to be busier midday than the other segments. Remote workers may be stopping by to grab a quick bite – and some may be choosing to do their grocery shopping during their lunch break when stores are less crowded.
This finding suggests an opportunity for grocery operators across all segments to develop or enhance in-store salad bars and quick-serve sections to tap into the lunch rush. Likewise, CPG companies may benefit from developing more ready-made, nutritious meal options that align with these midday dining habits.
Though the broader ethnic grocery category remained essentially flat in Q1 2025, Hispanic-focused grocers emerged as a sub-segment to watch. Both overall visits and average visits per location to these stores have been on the rise since 2021.
This robust demand presents an opportunity for CPG brands and grocers across segments to expand Hispanic-focused offerings, capturing a slice of this growing market.
Finally, store size matters more than ever in 2025. During the first quarter of the year, smaller format grocery store locations (locations under 30K square feet, across different chains) outpaced larger stores with a 3.2% YoY jump in visits, showing that bigger isn’t always better in the grocery store space.
This pattern aligns with the decrease in dwell times noted above – shoppers may be making shorter trips to smaller, more convenient grocery store locations. These quick errands are ideal for picking up a few items to supplement online orders, shopping multiple deals, or sourcing specialty products unavailable at larger grocery destinations. And to lean into this trend, grocery operators might consider testing neighborhood “micro-store” concepts, focusing on curated selections, and offering convenient parking or pickup to match consumer preferences for targeted purchases and quicker trips.
Location intelligence reveals a growing, dynamic grocery landscape which is holding its ground in the face of increased competition. Shorter trips, busier lifestyles, and changing work routines are reshaping in-store experiences. And grocery players that refine their store formats, target both lunch and on-the-go shoppers, and adapt to shifting demographics can position themselves to thrive in this competitive sector. As the market continues to evolve, continuous attention to these changing patterns will be key to maintaining and expanding market share.
1. Elevated visitor frequency could mean that gym-goers are getting more value out of their memberships and are therefore more likely to stay signed up. Between January and March 2025, all of the gym chains analyzed had a higher share of frequent visitors (those who visited about once a week) than in the equivalent month of 2024.
2. Fitness chains at all price tiers need to be strategic about the value they offer and the amenities that can engage budget-conscious consumers. Between Q1 2022 and Q1 2025, the captured trade area median HHI increased for all fitness subsegments – value-priced, mid-range, and high-end – suggesting that consumers swapped pricier gym memberships for more affordable options.
3. Close attention should be paid to how long visitors spend at fitness chains in order to reduce crowding and bottlenecks. Between Q1 2022 and Q1 2025, the average visit length increased at value-priced, mid-range, and high-end gyms. Floorplan and equipment improvements could be considered, as well as having trainers available to help gym-goers streamline workouts.
4. Gyms can use hourly visit data to better serve their members or use promotions to stabilize facility usage throughout the day. In Q1 2025, high-end chains received a larger share of morning visits while value-priced and mid-range fitness chains received larger shares of evening visits.
Like many industries in recent years, the fitness sector has experienced significant shifts in consumer behavior. From the rise in home workouts during the pandemic to the strain of hyper-inflation, foot traffic trends to gyms and health clubs have been as dynamic as the consumers they serve.
This report leverages location analytics to explore the consumer trends driving visitation in the fitness space and provides actionable insights for industry stakeholders.
The pandemic drove several shifts in the fitness space. Widespread gym closures led consumers to embrace home-based workouts, while demand for all things fitness increased due to an emphasis on overall health and wellness. This subsequently drove a renewed interest in gym-based workouts as restrictions lifted – even as some consumers remained committed to their home workout routines.
In Q1 2023, visits to fitness chains surpassed Q1 2019 levels for the first time since the onset of the pandemic, a sign that consumers had recommitted to out-of-home fitness. And in Q1 2024 and Q1 2025, fitness chains saw further growth, climbing to 12.8% and 15.5% above the Q1 2019 baseline, respectively.
Several factors have likely driven consumers’ return to gyms and health clubs, including the desire for both social connection and professional-grade facilities difficult to replicate at home. The steep increase in cost of living has likely also played a role, since consumers cutting back on discretionary spending can enjoy multiple outings and a range of recreational activities at the gym for one monthly fee.
Zooming in on weekly visits to the fitness space in Q1 2025 reveals the industry’s exceptional strength and resilience in the early part of the year.
The fitness industry experienced YoY visit growth nearly every week of Q1 2025 (and 2.4% YoY visit growth overall) with only minor visit gaps the weeks of January 20th, 2025 and February 17th, 2025 – likely due to extreme weather that prevented many Americans from hitting the gym.
And the fitness industry’s weekly visit growth appeared to strengthen throughout the quarter, defying the typical waning of New Year's resolutions. This could indicate that gym visits haven't plateaued and that consumers are demonstrating greater commitment to their fitness routines compared to last year.
Diving into visitation patterns for leading fitness chains highlights how increased visitor frequency drove foot traffic growth in Q1 2025.
Fitness chains tend to receive the most visits during the first months of the year as consumers recommit to health and wellness in their post-holidays New Year’s resolutions. And not only do more people hit the gym – analyzing the data reveals that gym-goers also typically work out more frequently during this period. Zooming in on 2025 so far suggests that consumers are especially committed to their fitness routines this year: Leading gyms saw an increase in the proportion of frequent visitors (4+ times a month) in Q1 2025 compared to the already significant percentage of frequent visitors in the first quarter of 2024.
Elevated visitor frequency could mean that gym-goers are getting more value out of their memberships than last year, and are therefore more likely to stay signed up throughout the year.
At the same time, the data also reveals that – contrary to what may be expected – a fitness chain’s share of frequent visitors appears to be independent of the cost of membership associated with the club: Life Time, a high-end club, and EōS Fitness, a value-priced gym, had the highest shares of frequent visitors between January 2024 and March 2025. This suggests that factors other than cost, such as location convenience, class offerings, community, or individual motivation, might be more influential in driving frequent gym attendance.
Segmenting the fitness industry by membership price tiers – value-priced, mid-range, and high-end – can reveal further insights on current consumer behavior around out-of-home fitness.
In Q1 2025, the captured market* median household income (HHI) was higher than the nationwide median HHI ($79.6K/year) across all price tiers – suggesting that even value-priced fitness chains are attracting a relatively affluent audience. This could indicate that gym memberships are somewhat of a luxury and that consumers from lower-income households gave up their gym memberships altogether as they tightened their purse strings.
Analyzing the historical data since Q1 2022 also reveals that the captured market median HHI has risen consistently over the past couple of years with the largest median HHI increase observed in the captured trade areas of high-end fitness chains. This suggests that middle-income households – that are more sensitive to the rising cost of living – likely swapped pricier gym memberships for more affordable options in recent years.
These metrics indicate that fitness chains at all price tiers need to think strategically about the value they offer and the amenities that can engage budget-conscious consumers who are carefully weighing every expenditure.
*Captured trade area is obtained by weighting the census block groups (CBGs) from which the chain draws its visitors according to their share of visits to the chain and thus reflects the population that visits the chain in practice.
Fitness clubs of all types need to manage their capacity to ensure health and safety standards and a positive experience for members. And understanding the average amount of time visitors spend at the gym can help fitness chains at every price point keep their finger on the pulse of their facilities.
Between Q1 2022 and Q1 2025, the average visit length increased at value-priced, mid-range, and high-end gyms. Value-priced gyms experienced the largest increase in average visit length – from 72.4 minutes in Q1 2022 to 74.0 minutes in Q1 2025 – perhaps due to their relatively lower-income visitors spending more time enjoying club amenities after cutting back on other forms of recreation. Meanwhile, mid-range and high-end gyms experienced relatively modest increases in average visit length, which were higher to begin with – likely due to their ample class and spa offerings and overall inviting, upscale spaces.
Elevated average visit length could mean that visitors are well-engaged and less likely to cancel their memberships. But as overall gym visits are on the rise, fitness chains may want to pay close attention to how long visitors spend at the facility. Floorplan and equipment improvements could be considered in order to reduce bottlenecks, and having trainers available to instruct on equipment usage and workout technique could help gym-goers streamline workouts.
Along with average visit length, understanding the daypart in which they receive the most visits is another way that fitness chains can improve efficiency and prevent overcrowding. And analysis of the hourly visits to fitness sub-segments revealed that some fitness segments receive more morning visits while others are more popular in the evenings.
In Q1 2025, high-end chains received a larger share of visits between 6 a.m. and 9 a.m. (19.7%) than value-priced and mid-range fitness chains (11.6% and 11.8%, respectively). Meanwhile, value-priced and mid-range fitness chains received larger shares of visits between 6 p.m. and 9 p.m. (21.9% and 22.2%) than high-end chains (16.5%).
Gyms can leverage this data to better serve members, for instance by scheduling more classes during peak hours. Value-priced and mid-range gyms, which saw a larger disparity between shares of morning and evening visits in Q1 2025, might also consider incentivizing off-peak usage through discounted morning memberships or early-bird snack bar deals.
The fitness space appears to be in good shape in 2025. Visits have made a full recovery from the pandemic era and still continue to grow, indicating strong consumer demand for out-of-home workouts. And using location intelligence to analyze the behavior and demographics of visitors to gyms at different price points can help identify opportunities for driving even greater success.
