Low consumer confidence is keeping restaurant traffic down
📈 Restaurant traffic is down despite increased menu innovation and consumer-facing technology. In Las Vegas, David Henkes highlights low consumer confidence, which has dropped 14 index points since 2023, as a major factor. A 10-point decline in confidence could reduce traffic by 0.5% to 2% within two months. From 2023-2025, inflation and layoffs further erode confidence. July's menu prices rose 3.9%, surpassing a 2.7% CPI increase. QSR prices rose 1.3% YoY in Q2 2025, slowing from 10.6% in Q2 2023.
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