As warmer weather typically boosts restaurant sales, the ongoing concerns about inflation are causing diners to hold back for the second consecutive summer, impacting both their confidence and spending capacity.

According to Huy Do, research and insights manager at market research firm Datassential, restaurant operators are still hopeful for increased foot traffic and sales during the summer, CNBC reported.

However, consumers are displaying more hesitancy due to inflationary pressures. Last year, consumers reduced their restaurant visits in May, June, and July as they grappled with rising prices not only at restaurants but also at gas stations and grocery stores.

Notably, some restaurant chains have already observed the impact of these factors. Sweetgreen, a salad chain, experienced a slowdown in sales after Memorial Day, attributing it to various factors such as the uncertain return to offices and increased summer travel.

Chipotle noted a deceleration in sales from late May onwards, citing the broader economic situation, workforce dynamics, and the return of normal seasonal fluctuations in college towns. Similarly, Shake Shack reported disappointing sales in June as lower-income consumers reduced their frequency of visits.

However, there is a glimmer of hope. Last year, restaurant sales rebounded in August, which Black Box Intelligence credited to increased consumer confidence, driven by falling gas prices.

Written by staff