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National Restaurant Association - Uneven sales growth continues

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Uneven sales growth continues

The choppy performance of restaurant industry sales continued through the first half of 2016. Preliminary numbers from the U.S. Census Bureau released today show that eating-and-drinking-place sales totaled $54.4 billion on a seasonally-adjusted basis in June, slipping 0.3 percent from May’s sales volume.

“While restaurant sales volume is roughly $2.5 billion higher in June 2016 than in June 2015, the industry overall has experienced volatility so far this year,” said Hudson Riehle, senior vice president of research for the National Restaurant Association. “This is consistent with results from our monthly Industry Tracking Survey, in which restaurant operators report mixed results over that same time frame.”

“Similarly, operators’ also report an uncertain outlook regarding business conditions six months out, especially when it comes to what overall economic conditions will look like. Government regulations, labor costs and the economy are citied as their top challenges contributing to their more cautious mindset,” Riehle added.

In comparison, grocery store sales advanced by 0.3 percent in June, but remain below restaurant sales volume at $52.7 billion. June’s total retail trade sales were up 0.7 percent from May.

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