QSRs are under pressure as price-conscious diners protect their budgets, leaving brands like Chipotle, Sweetgreen and Cava struggling with softer demand, wrote foot traffic research firm Placer.ai in a recent report.
Visits to QSRs were down 3.4% year over year in August. Chipotle visits were down 6.3% in Q2 2025 compared to Q2 in 2024.
“The state of the consumer was top of mind during second-quarter 2025 earnings calls, as restaurant executives consistently described a more cautious and discerning customer. Leaders from major brands like McDonald's, Chipotle and Starbucks noted that lower-income consumers, in particular, are feeling the pressure of a challenging economy and are pulling back on the frequency of their visits,” the research firm said.
McDonald’s CEO Chris Kempczinski framed it as a "two-tier economy," where affluent consumers continue to spend while lower-to-middle income households face significant cost-of-living pressures.
The research firm noted that consumer caution has led to a "trade-down" effect, where customers “actively seek value-oriented promotions or skip add-ons like a beverage to manage their check size.” This led QSRs like McDonald’s to launch meal deals, which the retailer lowered the price of in August.
“Ultimately, the brands that will thrive for the remainder of the year will be those that can master the art of delivering a strong, clear value equation—whether through price, experience, or convenience—to a customer who is more discerning with their dining dollars than ever before,” Placer.ai said.
Read about how you can stop foodservice leakage and convince customers who are already in the store to purchase a meal instead of going to the QSR down the street in the March 2025 NACS Magazine feature “Stop Foodservice Leakage.”