A growing number of restaurant chain executives says consumer uncertainty about the upcoming election is negatively impacting sales in their stores. Some chains, according to a recent article in Nation’s Restaurant News, have seen sharp sales drops in recent months.
Among the latest executives to blame the election was Greg Creed, Yum! Brands Inc. CEO. Yum owns and operates KFC, Taco Bell, and Pizza Hut stores across the U.S. and, to a lesser degree, abroad.
“It goes without saying that people are trying to decide who to choose and what the impact will be on the economy, and I think people are maybe just hunkering down a little bit,” he said during the company’s third-quarter earnings call last Thursday.
Earlier this summer, The Wendy’s Co. CEO Todd Penegor also cited the uncertainty. “When a consumer is a little uncertain around their future and really trying to figure out what this election cycle really means to them, they’re not as apt to spend as freely as they might have even just a couple of quarters ago,” he said.
In August, Popeyes Louisiana Kitchen Inc. CFO William Matt struck a similar chord. “What we also see is that there is a little more uncertainty with the consumer,” he said. “We’re not too sure what’s causing that, but our speculation would be, we think there is a rather unusual election going on and we think that unusual election is causing some uncertainty.”
Well, we (at FoodTradeTrends.com) know something else that is pulling fast-feeders sales down: The growing shifts, among consumers, for healthier fare, for organic foods, and for more nutritious foods.
We’ve reported on this before – particularly on how Millennials are opting for healthier foods and for eating at home as many as six, seven nights per week – and we will be reporting on it more in coming weeks.
We’ll also be watching restaurant sales, to see if they do go up after the election – regardless of who wins!