Technomic: Restaurants continue to struggle with traffic amid consumer cautiousness
Restaurant traffic remains uneven as consumer caution influences dining trends.
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According to Technomic, chain restaurant sales are slowing in 2025 as consumers are increasingly cautious with dining out. While some segments, including coffee and chicken, maintain growth, many restaurants continue to struggle with traffic due to rising costs and consumer spending anxiety.
Why It Matters
This suggests that the current economic climate may compress available territories for franchisees, as consumer caution affects overall traffic and spending behavior.
of consumers are now ordering fewer meals out as a result of inflation and economic uncertainty, which continues to hinder the recovery of the restaurant sector. Robert Byrne, the senior director for consumer research at Technomic, addressed these challenges during his mid-year update at CREATE: The Event for Emerging Restaurateurs, held at the Terranea Resort in Los Angeles.
The Technomic Top 500 report indicates that while 2025 may show slight improvements for the restaurant industry compared to 2024, dining traffic remains sluggish as consumers grapple with increasing living costs at the gas pump and grocery store. Many operators are responding to this environment by raising menu prices, which, while helping maintain sales figures, does not encourage increased customer visits.
Byrne noted that certain segments have performed better than others, particularly coffee, beverages, snacks, and chicken, while fast-casual chains like Chipotle and Shake Shack have reported traffic growth. In contrast, brands like Panera and Jimmy John’s are experiencing stagnant performance. Full-service venues are similarly split; while steakhouses such as Texas Roadhouse and LongHorn Steakhouse are thriving, many restaurants face broad declines in customer visits. Byrne highlighted the oversaturation of the market, noting there is currently one restaurant for every 400 adults, contributing to heightened competition and performance challenges.
