Article

What's Happening in Food, Travel and Hospitality

April 9, 2025
Two people being served at a restaurant

Circana is recognized as a leading advisor on the complexity of consumer behavior. The company’s insights featured in its Commercial Foodservice Topline Report capture how the hospitality industry performed in Q2 2024 across various segments. The results highlight areas where the industry was strong and where it was behind compared to 2023.

Here’s a look:

Q2 2024 WAS SLUGGISH BUT SHOWS SIGNS OF GROWTH

  • Traffic challenges. Total food service traffic was down 2% in Q2, while commercial food service declined by 3%.
  • Value meal deals. To appeal to the cost-conscious consumer, brands are launching new value meal deals. Performance through the first couple of months show these deals have potential to impact the bottom line.
  • Late night. Q2 traffic was negative for all four main dayparts. Morning meal and p.m. snack are comping strong growth in 2023. The hours from 9 pm to midnight are the one bright spot for the quarter.
  • Delivery. One of the only constants in 2024 is delivery growth. Low-income consumers are increasing usage of third-party delivery services, despite the high fees.

Man delivering food to someone who ordered on a mobile app

 

WHAT ARE THE TOP GROWING FOODS AND BEVERAGES?

Chicken overtook pork as the second-largest meat type in the past year and is trending towards overtaking beef as the number one overall meat type in food service. Chicken strips and wings were the top two growing food categories in Q2.
 
Chicken wings were the top growing food category at casual dining in Q2; Shellfish was a top growing item while fish was a top declining item.
 
Energy drinks continued double-digit growth, and bubble tea restaurants are expanding rapidly. Specialty coffee grew significant servings at midscale in Q2, while traditional coffee lost an equivalent amount of servings.

 
Patrons standing in front of store 


A LOOK AT FOOD SERVICE TRAFFIC

Food service traffic was down 2% in Q2, compared to the prior year. Checks continued to grow significantly, adding 5% year over year, resulting in total dollars growing by 2% versus a year ago. Total food service traffic was below 2023 and 2022 levels in Q2.
 
Many factors affect dollars—in Q2, large increases in average menu prices due to inflation had the largest positive impact on commercial food service, while same-store traffic had the largest negative impact.

 

THE UPS AND DOWNS OF HOSPITALITY

When 0.2% of consumers drop out of food service, the industry loses over 500,000 customers. After adding 309k jobs in 2023, the food services industry added only 34k jobs through the first half of 2024. 
 
Travel has grown throughout 2024, with monthly totals surpassing 2023, 2022 and 2021 levels. Through June, screenings are up 7%, vs. the first half of 2023.
 
Late night was the best-performing clock time in Q2, growing year over year by 6% at commercial food service, and continuing its six-plus quarter growth streak. Restaurant digital traffic continues to grow, representing over 16% of all orders.

Variety of food on a table


A FOCUS ON VALUE

Among 58 food and beverage company earnings reports, “value” was mentioned by 95%, the largest of any theme tracked. Sixty-eight percent of value menus are perceived as deals.
 
As consumers continue to value convenience, delivery was the only service mode to post growth this quarter.

 

WHAT'S WORKING AT FULL-SERVICE RESTAURANTS

While the channel overall is losing traffic, there are areas of growth to look to:

  • +20%: Chicken wings
  • +19%: Specialty coffee
  • +17%: Afternoon snack
  • +3%: Digital pickup
  • +1%: Beverage only visits
  • +1% Delivery

“Among 58 food and beverage company earnings reports, “value” was mentioned by 95%.”

David Richard Headshot

About the Author

David Richard is the Associate Principal for the Provista Food Program

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