Los Angeles, May 6 - The U.S. fast-food industry saw its first quarterly traffic decline since the winter of 2003, market research company NPD Group said Wednesday.
The fast-food segment posted a 1 percent year-over-year drop in traffic during the quarter that ended in February -- the first venture into negative territory since the same quarter in 2003, according to NPD's Consumer Reports on Eating Share Trends.
Fast-food chains, which have been expanding menus that offer food items for around $1, generally have been the most insulated from the current recession that has forced cash-crunched diners to eat more meals at home and trade down to lower-priced eateries.
The overall food service industry suffered a 1.5 percent fall in quarterly traffic -- the second consecutive quarter of negative customer counts -- as mounting job losses dented weekday lunch and dinner visits.
NPD did not comment on the performance of companies, but said bakeries, convenience stores, Mexican food restaurants and sandwich sellers were the best performers in the quick-service restaurant category during the quarter.
The hamburger segment was flat, while purveyors of chicken, gourmet coffee and tea, and pizza each saw traffic drop 9 percent, 4 percent and 2 percent, respectively.
"There are still restaurants attracting more consumers, but more are losing them than gaining," said Harry Balzer, chief industry analyst at NPD.
Profit reports from publicly held companies illustrate that point.
McDonald's Corp is one of the entire restaurant industry's best performers -- helped by its Dollar Menu, while chains such as Yum Brands' KFC, Domino's Pizza and Starbucks Corp have struggled.
Total spending at commercial food service outlets rose 0.5 percent for the February period, as the average check rose 2 percent from year-earlier levels, NPD said.
While diners cut back on weekday visits, NPD said they ate out more often during the weekend -- reversing a trend seen in prior quarters.
"Consumers seemed more willing to use food service as a special occasion on the weekend," said Michele Schmal, vice president of food service product development at NPD.
"Perhaps they are looking for a chance for a little escape via affordable luxuries, amidst the economic doom and gloom," he said.