Competitive Edge – August

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August By The Numbers

Main Takeaway

Restaurants start to build traffic momentum amid varied economic uncertainties and evolving consumer needs.

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State of the American Consumer

• Jobs: July added 73K jobs, below expectations; May and June reports were revised down 258K, an 89% cut (source)
• GDP: Beat forecasts at 3.3% growth, driven by 1.6% growth in consumer spending (source)
• Producer Price Index: Rose 0.9%, well above the 0.2% estimate—signaling rising wholesale inflation (source)
• Consumer Price Index: Held steady at 2.7%, but consumers still feel annualized impact (source)

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Quantiiv’s Take: Restaurants should treat cost increases—especially in food and labor—as a matter of WHEN, not IF. Proactive pricing is essential to protect margins amid uncertain inflation trends.

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Industry News and Earning Results

• US QSR: Traffic declined 0.4% YoY, while prices rose 1.0% (source)​
• Cava: Same store sales grew 2.1% driven by price increases; traffic was flat (source)
• RBI: Same store sales grew 2.4%, led by Burger King and Tim Hortons (source)
• Yum Brands: Taco Bell reported strong 4% same store sales growth (source)

Quantiiv’s Take: Restaurants sales are gaining momentum after a soft stretch. Expect traffic to improve and discounting to ease as restaurants shift from defense to offense.

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This Caught My Eye (TCME): A Pivot to Wellness?

Alcohol consumption is steadily declining with only 54% of U.S. adults reporting they drink alcohol. More notably, for the first time, a majority (53%) now believe that moderate drinking (1–2 drinks per day) is unhealthy. 

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The “Sober Curious” movement has already driven innovation—think mocktails and non-alcoholic beer—but a deeper shift is underway. Consumers are seeking health-forward yet social experiences. They still crave connection—but without the health trade-offs.

Platforms like Strava, which blends fitness tracking with social media, saw user growth of over 50% in 2024. Meanwhile, run clubs are booming, with 59% growth in new clubs and an 18% increase in users logging group runs of 10+ people.

For restaurants, these shifts open the door to rethinking how they design social occasions and beverage programs.

Quantiiv’s Take: This shift in consumer behavior signals a broader opportunity for restaurants: communal wellness. Experiences that blend health, routine, and social connection are beginning to replace traditional alcohol-centric occasions. 

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