NPD Reports Restaurant Industry Stable for Most of 2008, but Dips in Fourth Quarter

Visits to quick service restaurants and deal promotions bolster industry
CHICAGO--(Business Wire)--
The restaurant industry remained stable for most of 2008 with visits and dollars
up over the previous year, but traffic dipped in the fourth quarter, yielding
the industry`s slowest traffic and dollar growth since the recession of
2002-2003, according to The NPD Group, a leading market research company.

NPD`s Consumer Reports on Eating Share Trends (CREST®), which tracks consumer
usage of commercial foodservice, reports foodservice traffic advanced +0.2
percent over a year ago for year ending November 2008, and consumer spending
grew by two percent.

"Despite this past year`s extremely weak economic conditions, the restaurant
industry as a whole managed to keep its head above water for most of the year,"
said Harry Balzer, chief industry analyst and vice president and author of
Eating Patterns in America. "Strong promotional activity on the part of chains,
and growth in breakfast and lunch visits to quick service restaurants,
contributed to the slight gains the industry experienced this past year."

According to NPD, promotion-related visits supported all commercial foodservice
gains, as deal visits increased six percent and non-deal visits slipped by one
percent. For the annual period ending November 2008, 23 percent of all traffic
involved some type of consumer-recognized deal. Over 90 percent of the increase
in deal visits came from quick service restaurants (QSR).

While QSR traffic growth slowed in 2008, the segment fared better than full
service restaurants. The modest growth at QSR offset losses at midscale
restaurants. Deal-related traffic kept QSRs in a positive position. Casual
dining traffic was stable for the year; however, trends weakened in the latter
half of the year with a two percent decline in traffic for the fall quarter.

As consumers took advantage of discounts at lunch, lunch traffic increased after
realizing no growth in 2007. However, visits to restaurants for supper continued
to trend down. Morning meal and snack-related occasions slowed over the previous
years` growth, but did experience positive growth in 2008.

"I don`t believe consumers, no matter the state of the economy, will abandon
restaurants entirely, they will just use them differently - more
cost-consciously," says Balzer, who has been observing how Americans eat for 30
years. "There will be no recession in eating; there will just be winners and
losers. The restaurants that deliver value and make it easy to get food cheaper,
in new and compelling ways, will win."

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and
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The NPD Group, Inc.
Kim McLynn, 847-692-1781
Kim_mclynn@npd.com

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