U.S. restaurant sales and traffic slowed in 2024, and for some individual chains, those negative trends have continued into 2025.
Sales among the nation’s 500 largest restaurant chains increased 3.1 percent in 2024, but that was the lowest annual increase in 10 years – excluding the Covid-19-related slowdown in 2020 – according to Technomic’s 2025 Top 500 Chain Restaurant Report.
The report also found that nearly 40 percent of U.S. restaurants experienced a sales decline last year.
"The restaurant industry faced significant headwinds in 2024, including higher prices, shifting consumer spending patterns, and increased competition," Technomic Senior Director of Industry Research Kevin Schimpf said. "Despite a challenging environment, top 500 chain sales stayed positive, climbing for the fourth consecutive year.”
Traffic at seafood restaurants fell 1 percent in 2024, while sales were flat for the year, research firm Circana told SeafoodSource.
One seafood chain, Bonefish Grill, which has 166 locations across the country and is operated by Tampa, Florida, U.S.A.-based Bloomin’ Brands, experienced sales declines of 8.3 percent to USD 533 million (EUR 469 million), according to the Technomic report.
In response to disappointing performances from several of its brands, Bloomin’ Brands laid off 100 corporate employees and reduced menus at its Outback, Bonefish Grill, Carrabba’s Italian Grill, and Fleming Prime Steakhouse & Wine Bar restaurants.
Red Lobster was another chain that struggled mightily in 2024, experiencing a sales drop of nearly 23 percent to USD 1.68 billion (EUR 1.5 billion), while its restaurant count plunged 20 percent to 518, according to Technomic.
Despite turnaround efforts post-bankruptcy, such as streamlining its menu and partnerships with celebrities such as Flavor Flav, customer visits to Red Lobster have continued to plunge this year. Customer visits fell 31 percent in January, 35 percent in February, and 24 percent in March, according to Placer.ai.
The large reduction in locations has contributed somewhat to the year-over-year traffic declines, but visits per location have decreased as well, Placer.ai Head of Analytical Research R.J. Hottovy told SeafoodSource.
“This suggests that the chain’s ongoing turnaround efforts have yet to fully gain traction and may also reflect broader economic headwinds. In the current environment, consumers remain highly price-conscious and have scaled back on dining out,” he said.
Full-service restaurant chains are not the only ones struggling …
