During the holiday season, the footfall in pizzerias decreased by 10.3%, while establishments offering sandwiches and chicken meals experienced a drop of 3.2%. Both types of restaurants saw a decline in customers, with a 11.4% and 1.7% decrease, respectively. In the former, the average number of visits per customer in a single month increased slightly, while in the latter, it decreased slightly. Meanwhile, the average duration of a visit increased by 28 seconds in pizzerias and by 5 seconds in venues offering sandwiches and chicken meals. These conclusions come from the latest report, based on observations of almost 3 million consumers in more than 1,800 fast-food restaurants.
According to a cyclical report by technology company Proxi.cloud and platform UCE RESEARCH, from June to August, footfall in the surveyed pizzerias decreased by 10.3% year on year. At the same time, locations offering sandwiches and chicken meals saw a drop of 3.2% year on year. The report draws on traffic observations around 1,800 of the largest fast-food restaurants offering sandwiches and chicken meals (McDonald’s, KFC, Burger King, Max Burgers, and Subway), as well as pizzerias (Pizza Hut, Telepizza, MaxiPizza, Gruby Benek, Domino’s Pizza, Da Grasso, and Biesiadowo). Behavior of nearly 3 million consumers was closely analyzed.
In the words of Łukasz Pytlewski from Proxi.cloud, “These results are difficult to attribute to changes in Polish people’s dietary habits. In our opinion, several factors could have contributed to the drop in footfall. We can point to the specific nature of the holiday period. Moreover, the economic situation of Poles could have dictated their scaling back of dining out. Also worthy of notice is the trend of placing orders through apps that offer home delivery.”
The report also highlights that the number of customers in pizzerias decreased by 11.4% year on year, and in locales offering sandwiches and chicken meals, the decrease was 1.7%. Mateusz Chołuj from Proxi.cloud states that the double-digit drop is undoubtedly felt in business terms by the pizza chains. It’s expected that they compensate for this with higher prices.
However, co-authors of the UCE RESEARCH study note that lower footfall in such places does not necessarily translate into lower earnings for the industry, as an increasing number of people are ordering takeaway, and therefore, naturally do not need to appear in a restaurant.
“The decline in the number of customers in the case of sandwich and chicken meal chains is much smaller. This could be linked to much larger investments in advertising activities by these entities,” added Łukasz Pytlewski.
The report authors also analyzed the average monthly frequency of visits. In the case of pizzerias, the average number of visits per customer per month increased by 1.2%. From June to August, it was 2.3, just as in the previous year. On the other hand, venues offering sandwiches and chicken meals saw a drop of 1.5%. Last time, 3.6 visits were recorded, previously, it was 3.6.
“These changes are minor and did not significantly affect the footfall. The key issue here is the outflow of customers. Hence, chains should focus more on acquiring and retaining guests, not just on activities aimed at increasing the frequency of visits,” analyzed Pytlewski.
The report also reveals a prolongation of the average duration of a single visit in fast-food establishments. In the case of pizzerias, it increased by 2% (from June to August this year – 22:49, in the same period of the previous year – 22:21). In venues offering sandwiches and chicken meals, the increase was smaller, i.e., 0.4% (last time – 23:04, a year ago – 22:59).
Mateusz Chołuj from Proxi.cloud comments on these results, “These numbers are affected by how many orders are consumed on-site and how many – to go. A higher share of the latter shortens restaurant visits. One might expect that the time spent on ordering and eating in a pizzeria is longer than in a venue offering sandwiches and chicken meals. Similar results may suggest that, compared to such places, pickup orders have a higher share in pizzerias.”
Concluding the report, Łukasz Pytlewski says that significant changes in traffic levels for fast-food restaurants should not be expected in the near future. From a long-term trend perspective, analysts will observe whether the number of customers in establishments will decrease due to the development of app and platforms for placing delivery orders. The intensification of this phenomenon can be a serious challenge for establishments operating in this market.
Research and Analytical Method Description:
The analysis was based on traffic observations around more than 1,800 of the largest fast-food restaurants offering sandwiches and chicken meals (McDonald’s, KFC, Burger King, Max Burgers, and Subway), as well as pizzerias (Pizza Hut, Telepizza, MaxiPizza, Gruby Benek, Domino’s Pizza, Da Grasso, and Biesiadowo). Proxi.cloud and UCE RESEARCH analysts looked at the situation occurring from the beginning of June to the end of August this year and compared it to the same period the previous year. In total, traffic originating from monitoring the behavior of nearly 3 million consumers was analyzed.
The research sample consisted of consumers who had agreed to allow access to their mobile device’s location, provided location data, and visited the investigated establishments in both comparison periods. A user’s entry into the research area was considered a restaurant visit when it lasted at least 3 minutes and no longer than 4 hours. Data were collected through a network of mobile apps using proprietary technology based on geofencing, i.e., a method of identifying entries and exits from designated zones using mobile device location services.
Source: https://managerplus.pl/spadek-ruchu-w-fast-foodach-latem-2024-r-mniej-klientow-dluzsze-wizyty-72224
