Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

How Is Inflation Impacting Fast Food and QSR Brands?

by 
Shira Petrack
 on 
June 14, 2022
How Is Inflation Impacting Fast Food and QSR Brands?

As consumers ponder cutting down on spending in the face of high inflation, the QSR sector seems to be maintaining relatively steady visitation patterns. We dove into year to date offline visits to leading brands to see how the various QSR subcategories are faring. While the data doesn’t fully capture delivery orders or drive-thru visits, the foot traffic numbers can still provide a rough sense of the state of the sector going into the second half of 2022. 

Burger Leaders – McDonald’s, Wendy’s, and Burger King 

Year-over-year (YoY) visits to Wendy’s and Burger King are up, but year-over-three-year (Yo3Y) visits are down. And while it’s important to note that these numbers don’t include all drive-thru and delivery orders, May 2022 Yo3Y foot traffic to the leading QSR burger brands underperformed offline visits trends to the wider fast food and QSR category. 

Of the three burger leaders, McDonald’s is showing the best performance, with Yo3Y in April 2022 up by 6.3% and May 2022 Yo3Y visits up by 3.8%. McDonald’s has also seen the strongest YoY growth, with monthly YoY foot traffic up by double digits every month this year. It is also worth noting that McDonald’s has been shrinking its physical footprint, which makes the rise in Yo3Y monthly traffic all the more impressive. 

Meanwhile, Wendy’s and Burger King are experiencing a more challenging situation, with May 2022 foot traffic down 12.1% and 12.4%, respectively, when compared to May 2019. And while their YoY numbers are positive, the growth is not as significant as might be expected given the comparisons to the unique environment in 2021. 

With regards to Burger King, some of the drop in visits is likely due to store fleet consolidation. Burger King has been closing underperforming stores since 2019 as parent company RBI focuses on international growth. But visits per venue have also been down, with May 2022 visits per venue 10.4% lower than in May 2019, which means that brand’s right-sizing is not yet over. 

Wendy’s has attributed its Q1 2022 low foot traffic numbers to the particularly cold winter and to a slow-down in traffic from lower-income consumers. The chain also invested heavily in its breakfast menu, but as office workers have been slow in returning to the office, breakfast sale growth has stalled. To offset these temporary challenges, the brand has decided to increase prices – which may help offset some of the visit losses in Q2. 

Regional Burger Chains – In-N-Out Burger, Whataburger, SONIC Drive-In, and White Castle

While burger leaders are staying at or below 2019 visit levels, smaller regional burger chains are showing impressive growth. Monthly Yo3Y visits to In-N-Out Burger, Whataburger, SONIC Drive-In, and White Castle in May 2022 grew by 38.5%, 14.0%, 20.8%, and 8.5%, respectively, significantly overperforming the wider fast food & QSR category, which was down 0.6%. All four chains have also seen consistent Yo3Y growth in visits per venue this year. 

This may indicate that the burger leaders’ subdued foot traffic numbers do not necessarily reflect a waning demand for QSR. Rather, as more and more people look to reign in unnecessary spending, consumers may be limiting their overall spending and this category is able to take advantage of a wider percentage of overall QSR visits.

Chicken Leaders – Popeyes, KFC, and Chick-fil-A

Foot traffic performance for the chicken QSR category was mixed in the first half of 2022, with Popeyes Louisiana Kitchen seeing impressive Yo3Y growth while Chick-fil-A visits stayed relatively on par with pre-pandemic levels and KFC visits seem to have dropped significantly. 

Popeyes’ visits, March through May 2022, stayed relatively close to 2021 levels while the brand’s Yo3Y visits jumped – which could indicate that Popeyes is still riding the wave of its chicken sandwich visit bump. In contrast, KFC’s chicken sandwich launch in early 2021 doesn’t seem to be having the same effect – although it’s important to note that KFC’s foot traffic numbers may not include all the digital order “Quick Pick-Up” visits which the brand has been investing in heavily

Meanwhile, Chick-fil-A seems to be maintaining pre-pandemic visit numbers thanks to its significant store fleet expansion – monthly average visits per venue were 8% to 20% lower between January 2022 and May 2022, which may indicate that the brand is opening venues a little faster than it can fill them.  

Tex-Mex Leaders – Chipotle and Taco Bell

Compared to the wider QSR sector, Tex-Mex brands Chipotle and Taco Bell have been performing well. Chipotle in particular has seen its monthly foot traffic up both YoY and Yo3Y every month of 2022 so far. Taco Bell also started off 2022 lagging behind its pre-pandemic visit levels but has now reached visit growth, with May 2022 visits up 7.9% relative to May 2019 – perhaps thanks to the re-launch of its highly popular Mexican Pizza. 

Both Taco Bell and Chipotle have been leaning into digital orders and drive thrus to fuel growth. Their impressive foot traffic numbers prove once more that online and offline success do not need to come at the expense of each other. Instead, a well executed omnichannel dining strategy leverages the strengths of each channel to create a larger whole. 

For more data-driven dining insights, visit placer.ai

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
How Will Primark’s US Expansion Impact Target?
All Eyes on Eyewear
Northwestern U.S. Grocery Dive
Return of the Lunch: Salad Chains Are Thriving
Retail Media Networks – Off the Beaten Track
Bet Your Bottom Dollar: Discount and Dollar Stores Drive Foot Traffic
Ulta & Lululemon: Discretionary Spending On The Up
The Score After Q1: Sporting Goods Chains
Who Uses NYC Airports: Biting Into The Big Apple’s Main Transport Hubs
Off Price: Strength in The Face of Retail Challenges
Visits Improve for Home Improvement
Walmart, Target & Wholesalers in Q1 2023 – The Return of Mission-Driven Shopping?
Department Store Roundup: Q1 2023
Placer.ai Office Index: April 2023 Recap
Placer.ai Mall Index, April 2023 – A Rebound on the Horizon?
How Will Bed Bath & Beyond’s Bankruptcy Impact the Retail Space?
Buffet Restaurants: Filling Up on Foot Traffic
Thrift Stores: Vintage Visits Drive New Age in Apparel
The Windy City: A Hub of Post-Pandemic Opportunity
Diving into Dining Traffic - Q1 2023
Bring On The Joe
A Dollar (or more) For Your Thoughts: Five Below and pOpshelf
Dining Out With The Cheesecake Factory
Retail Foot Traffic Recap – March 2023
Digging Into 2023: McDonald’s and Chipotle Update
Placer.ai Office Index: March 2023 Recap
How Did Key Retail Categories Perform in Q1 2023?
Northeastern USA Grocery Dive
Movie Theaters Storylines for 2023
Ollie's Bargain Outlet: Discounters are Evolving
Leveraging Brick-and-Mortar Retail in 2023
America’s Evolving Work Patterns: A Deep-Dive into New York and Chicago
Placer.ai Mall Index March 2023
Tuning Into Record Stores
Five Franchises To Watch in 2023
What’s Next For Domestic Tourism?
It’s Showtime! Movie Theaters in the Spotlight
5 Limited Time Offers (LTOs) Driving Restaurant Traffic
Department Store Deep-Dive: Belk
Regional Grocery Chains Staying Ahead of the Competition
Five Chains that Rightsized for Success
Unlocking the Potential of Offline Retail Media Networks
Dining Out With Darden
What’s in Store for Self-Storage?
Nike & lululemon Update: Strong Performance Amid Expansion Plans
Many Ways to Win: Midwest Grocery Deep Dive
Retail, Reinvented: The Rise of the Pop-Up Shop
Navigating a New Normal in Business Travel & Commutes
Placer.ai Office Index: February 2023 Recap
Retail Categories Staying Strong in Volatile Environment
Ulta Beauty: Poised for Success into 2023
Placer.ai Mall Index February 2023: Reasons for Continued Optimism
Catching Up With DICK’s & Hibbett
The Miami-Dade Arena: An Advertising Slam Dunk
Car Washes Revving Up Visits
Tuesday Morning and Sunrises in Home Furnishing
Dining & Valentine’s Day Recap
2023: The Year of the Discount Store
Aldi’s Success Highlights Growing Demand for Value Groceries
5 Retail & Service Categories Holding onto Pandemic Gains in 2023
Visitor Insights from Super Bowl 2023
2023 First Look: Home Improvement Update
How Are Target, Walmart, and Wholesale Clubs Faring in 2023?
Department Store Deep-Dive: Nordstrom
Off-Price: Taking Off in Uncertain Times
Checking in On Middle-Class Hubs
Who Attends the Super Bowl?
Placer.ai Office Index: January 2023 Recap
Focusing On Fitness: Q4 and January Recap
Placer.ai Mall Index: January 2023 – Returning Mall Normalcy?
Location Intelligence Insights Into Concert Attendance
Winning Dining Strategies for 2023
In-N-Out Burger: What to Expect as the Brand Moves East
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Migration Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In
Placer.ai’s Q4 2022 Quarterly Index
Placer.ai Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023
Placer.ai Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
Announcing Placer.ai’s COVID RECOVERY DASHBOARD
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight