Toast, the digital platform for restaurants, has released its Q1 2023 Restaurant Trends Report, offering insights into the state of the U.S. restaurant industry. The report analyzed aggregated sales data from selected cohorts of restaurants on the Toast platform, which serves around 85,000 restaurant locations. Key trends highlighted in the report include:
1. Kansas City sees a 3% increase in lunch transactions since 2019: Among the metropolitan areas analyzed, Kansas City and Charleston were the only ones to experience a growth in weekday lunchtime transactions in Q1 2023 compared to Q1 2019. Larger commuter areas like New York City, Philadelphia, Chicago, and San Francisco have yet to fully recover to pre-pandemic levels.
2. Lunchtime drinking habits: The analysis revealed that Wisconsin had the highest percentage of alcohol purchases during lunchtime, with alcoholic beverages accounting for approximately 30% of items on the average Wisconsin lunch bill. In contrast, New York had the lowest percentage, with alcohol ordered alongside lunchtime meals only 8% of the time.
3. Dine-in remains dominant for workday lunches: Despite the impact of the pandemic, dine-in transactions still accounted for 70% of lunchtime transactions in Q1 2023, compared to 79% in Q1 2019. Takeout transactions increased from 20% to 27% during the same period.
4. Increase in lunch spending: Guests are spending more on lunch, whether dining in or opting for takeout. On average, the amount spent on takeout food during lunchtime increased by 42% since 2019, reaching $22 per order in Q1 2023. Dine-in food saw a 49% increase, with an average spend of $24 per order.
The report provides valuable insights into changing consumer behaviors and preferences within the restaurant industry, based on real-world sales data.