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The bad news has continued for the restaurant industry during the second quarter of 2016. The negative sales streak has spanned two quarters for the first time in two years, amidst new labor challenges. Same-store sales growth during the quarter was -0.7 percent, which followed last quarter’s -0.2 percent year-over-year growth rate, becoming the second consecutive quarter in which the industry has failed to produce positive sales growth.
The last time the industry experienced two consecutive quarters of negative same-store sales growth was over two years ago. This adds up to a disappointing -0.4 percent year to date for 2016. This insight comes from data reported by TDn2K’s Black Box Intelligence through The Restaurant Industry Snapshot, based on weekly sales from nearly 25,000 restaurant units, more than 130 brands, representing $64 billion in annual revenue.
June’s same-store sales growth was -1.1 percent, compared with flat sales growth during May. Since the beginning of the year, positive sales growth for restaurants was only reported in February. Furthermore, June’s sales growth was the worst since January 2014, which was heavily affected by weather.