Foodservice Traffic Declines for Fourth Consecutive Quarter

─Spending declines for second consecutive quarter, NPD reports
CHICAGO--(Business Wire)--
Summer is historically a peak season for the foodservice industry, but this past
summer the industry realized its fourth consecutive quarter of traffic declines
versus the same quarter a year ago, according to The NPD Group, a leading market
research company. NPD`s CREST®, which continually tracks consumer usage of
foodservice, reports that total restaurant industry traffic declined by -3.6
percent in the summer quarter (June, July, and August) versus the summer quarter
last year. Total consumer spending at foodservice contracted by -1.6 percent
versus a year ago due to the weakness in customer traffic, marking two
consecutive quarters of spending decline.

According to CREST®, traffic declined across all restaurant segments and
dayparts.This summer visits to quick service/fast food restaurants (QSR)
declined by -3 percent. Casualdining declined -4 percent and midscale was down
-5 percent. Visits at the supper daypart fell for the seventh consecutive
quarter declining in the summer quarter (June, July and August) by -6 percent
versus a year ago. Lunch visits contracted by -4 percent, morning meal traffic
fell by -2 percent, and PM snack, which showed positive growth (+1 percent) in
the spring quarter, declined by -2 percent this past summer.

"There are a variety of factors contributing to the declines in restaurant
visits and spending, including high unemployment, and another is the difference
between food prices at home and food prices away-from-home," says Harry Balzer,
chief industry analyst and vice president at NPD. "Food prices at supermarkets
are less than a year ago, while restaurant prices are higher than a year ago."

To appeal to the price-conscious consumers, restaurants have been aggressive in
offering deals over the past year. Deal-related visits to restaurants remained
the only area of increase in the summer quarter, despite a tough year-ago
comparison of +9 percent, NPD reports. Deal-related visits increased by +2
percent and non-deal visits fell by -5 percent in the summer quarter ending
August. The increase in dealing this summer traced to coupons, especially
internet coupons, "buy some/get some free," and discounted price. Over half of
the increase in dealing came from casual dining chains.

NPD`s CREST OnSite®, which tracks usage of foodservice at business and industry,
secondary schools, colleges and universities, hospitals, lodging, senior care,
military segments, and vending, reports that for the year ending June 2009
non-commercial foodservice traffic experienced declines in sectors most affected
by high unemployment, such as business and industry, vending, and lodging.
Business and industry posted a -12 percent decline for the year ending June 2009
versus a year ago. Foodservice traffic increased at colleges and universities
(+4 percent), senior care (+1 percent), and military segments (+1 percent).
Traffic at secondary schools was down -1 percent for the year, driven by a
reduction in ala cart visits. Greater participation in the national school lunch
and breakfast programs offered at secondary schools resulted in an increase in
cafeteria meal visits.

"Unfortunately, the weakness foodservice is experiencing is not expected to be
short-lived," says Riggs. "Foodservice traffic will remain weak throughout the
third and fourth quarters of 2009, and we don`t expect traffic growth until the
second half of 2010."

About The NPD Group, Inc.

The NPD Group is the leading provider of reliable and comprehensive consumer and
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For more information:
The NPD Group, Inc.
Kim McLynn, 847-692-1781
Senior Public Relations Manager
www.npd.com

Copyright Business Wire 2009