Friday, March 29, 2024
spot_img
HomeNewsBusiness WireToast Restaurant Q1 Trends Report: Dine In Growth Surges While Takeout and...

Toast Restaurant Q1 Trends Report: Dine In Growth Surges While Takeout and Delivery Decline

Guests tip 5% more on average when dining in versus ordering take-out or delivery

BOSTON–(BUSINESS WIRE)–Toast (NYSE: TOST), the all-in-one digital platform built for restaurants, today announced its Q1 Restaurant Trends Report, providing visibility into the overall state of the restaurant industry through aggregated sales data from restaurants on the Toast platform, which serves approximately 62,000 locations in the U.S.


In Q1, the operating environment continued to change rapidly for restaurant operators – pandemic restrictions lifted throughout the U.S., leading to a surge in guests dining in, all while the industry continued to face a sustained labor shortage alongside rising input prices due to supply chain disruption and accompanying inflation. However, with this backdrop, restaurant operators, employees and suppliers remained incredibly resilient.

Dining in surges while takeout and delivery decline

Diners are ready for the warm weather and enjoying their favorite meals in person. On-premise dining sales were up 46% from Q1 2022 compared to Q1 2021, while takeout and delivery sales were down by 7% over the same period.

Restaurant sales saw strongest growth in the West and Northeast

While all regions in the U.S. saw impressive year-over-year sales growth, the Western region grew fastest with 38 percent growth, a rate almost twice as high as the South.

San Francisco, San Diego, Seattle, New York and Los Angeles grew fastest in Q1

The restaurant recovery is real in major markets across the U.S. The top five performing cities in Q1 2022 were San Francisco (57%), San Diego (55%), Seattle (54%), New York (50%), and Los Angeles (46%) based on Q1 year-over-year gross merchandise value (GMV) or total sales growth on a same-store basis.

Tipping remains steady

On average across all tipped transactions, tipping across full-service and quick-service restaurants remained steady at an average of 19.9% for full service (slightly up from 19.8% in Q1 2021) and 17.0% for quick service (slightly up from 16.9% in Q1 2021).

Indiana is the highest tipping state and California is the lowest

Guests in the Midwest were slightly more generous this quarter, with Indiana coming in at the highest across all tipped transactions with an average tip percentage of 21.29%, followed by West Virginia at 21.23%, Delaware at 21.22%, Ohio at 21.14% and Kentucky at 21.07%. The lowest tipping states were Louisiana at 18.96%, Florida at 18.72%, New York at 18.64%, Washington at 18.41% and California at 17.56%.

Guests tip more when they dine-in versus ordering take-out or delivery

Guests continue to appreciate great service when dining in. Across all tipped transactions they are tipping significantly more when they are on premise versus when ordering takeout or delivery.

Top performing cuisines

Asian-Inspired cuisine is the top performing cuisine among guests followed by breakfast and middle eastern.

Methodology

The Restaurant Trends Report, powered by Toast, uncovers key trends across the restaurant industry through aggregated sales data from restaurants on the Toast platform, which has approximately 62,000 locations as of March 31, 2022 in the U.S. All growth rates are calculated on a same store sales basis for the applicable period of time. The Restaurant Trends Report is not indicative of the operational performance of Toast or its reported financial metrics including GMV growth and same-store GMV growth.

About Toast

Toast is the end-to-end platform built for restaurants of all sizes. Toast provides a single platform of software as a service (SaaS) products and financial technology solutions that give restaurants everything they need to run their business across point of sale, operations, digital ordering and delivery, marketing and loyalty, and team management. By serving as the restaurant operating system across dine-in, takeout, and delivery channels, Toast helps restaurants streamline operations, increase revenue, and deliver amazing guest experiences. Toast proudly serves approximately 48,000 restaurant locations.

TOST-CORP

Contacts

Media: [email protected]

spot_img
RELATED ARTICLES
spot_img
spot_img
spot_img

Caribbean News

Omdia: Global semiconductor supply chain set to see growth in 2024 as GenAI demand increases 

LONDON, England - New research from Omdia has revealed that the global semiconductor supply chain is forecasted to reach approximately $600 billion by 2024, having navigated through strategic inventory...

Global News

New Commonwealth network to support knowledge exchange on medicines and vaccine procurement

LONDON, England - Officials attending the inaugural meeting of the Commonwealth Heads of Procurement Network (HOPN) have underscored the importance of supporting countries to...