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Restaurant Sales Hit New Record High
WASHINGTON -- Restaurant sales bounced back from a dampened first quarter to hit a new record high in April, the National Restaurant Association says. Meanwhile, consumers’ pent-up demand to eat out remains historically high, which suggests they are ready to spend even more when their financial situations improve.
Eating and drinking place sales totaled $45.9 billion in April on a seasonally-adjusted basis, up 0.8% from March and approximately $200 million above the previous high registered last December, the association reports. After totaling nearly $45.7 billion in December, sales at restaurants, taverns and bars were dampened somewhat during the first three months of this year, likely the result in part of the impact of the restoration of the payroll tax. On a cumulative basis, restaurant sales in the first quarter were roughly $850 million short of December’s baseline.
While spending appears to have bounced back from the first quarter, new National Restaurant Association survey data show the potential for even more improvements in the months ahead. In the survey, consumers were asked if they are patronizing restaurants as often as they would like.
The answer was a resounding no, the association learned, with 49% of adults reporting they are not. This indicator of pent-up demand was even more pronounced among middle-aged consumers with 59% of those 35 to 44 and 54% of 45 to 54 saying they aren’t eating out as often as they would like. Women (54%) were more likely than men (44%) to say they would like to dine out more often.
The story is similar for the off-premises market, with 51% of adults saying they are not purchasing take-out or delivery as often as they would like. Like the on-premises responses, women (55%) were more likely than men (46%) to say they would like to be using take-out and delivery options more often.
These new survey results suggest that once consumers feel more confident about their personal finances, they will be primed to eat out more often at restaurants, said Bruce Grindy, association chief economist.
Published by The Business Journal, Youngstown, Ohio.
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