Americans Prefer Quick Service Chains to Full Service Restaurants Amid Pandemic

Quick service restaurant chains in the US are seeing less of a decline in customers than their full-service counterparts, likely due to features that make it easier to carry out contactless orders and otherwise adapt to the pandemic, according to market research firm NDP Group.

Transactions at major restaurant brands were down by 10 percent the week of July 5th compared to sales during the same time period a year ago. That’s an improvement of four percentage points from the week earlier

Much of that uptick can be sourced to the quick-service chains, where transactions were up by four points compared to the week prior, which saw a 13 percent declined compared to last year. But full-service restaurants continue to be pummeled by the pandemic: Transactions were down 30 percent the week of July 5 compared to a year ago, a 5 decline from prior week’s metrics, according to NPD.

David Portalatin, a NPD food industry advisor, said in prepared remarks that the research points to a growing divide between quick and full service restaurants.

He said even before the pandemic, Americans were preferring grab-and-go and other quick service options. “Then suddenly this March, we entered a reality where the entire restaurant industry was off-premise only,” Portalatin said, adding that “harsh reality was far harsher” for full service restaurants.

Portalatin noted that quick service options saw declines that were only half of those experienced by full-service chains, were declines reached 80 percent or worse compared to last year. He pointed to the quick-service restaurants’ features like drive-thru windows and digital apps that allow customers to order and pick-up food with minimal interaction, a plus during the pandemic.

Full-service restaurants are also at the mercy of local ordinances on when and how they can reopen. Some states that had begun to allow restricted indoor service have since pulled back due to spiking numbers of COVID-19 cases. Other states allow outdoor dining, but that too comes with its own limits.

Portalatin also noted that the quick service chains have created streamlined menus and expanding drive-thru capacity, which are not subject to local restrictions imposed due to the pandemic. He said that while full service brands can use the same strategies, they don’t play to their strengths as restaurants. The brands also might have to dismantle temporary options created for takeout once indoor service can start again, taking up more time and resources.