Quarter 3 2012 showed a continued decrease in sales velocity at Atlanta’s independent restaurants, according to a sales survey conducted by NetFinancials Inc, a firm that provides tax and accounting services for restaurant companies.
In Quarter 3 2012, sales at Atlanta restaurants increased just 3.7% over sales for Q3 2011. Through three quarters of 2012, Atlanta restaurants have experienced declining quarterly comparable (“comp”) sales. Beginning in Q1 2012, comp sales were 6.8%. Then, in Q2, comp sales were 5.0%. Now, in Q3, comp sales are 3.7%. Year-to-date through September 30, 2012, Atlanta restaurant sales increased 4.9% over sales for 2011.
Quarter 3: 2012 vs. 2011
A majority of Atlanta restaurants posted same-store sales increases in the third quarter 2012, when compared to the same period in 2011. Of the 78 restaurants surveyed, 71% reported positive sales gains in Q3 2012. That contrasts with 29% of restaurants reporting Q3 negative sales trends. Twenty percent of restaurants surveyed reported double-digit sales gains in Q3 2012.
Conclusion
“While we should not lose sight of the fact that restaurant sales were positive in Q3 2012, the sales trend is worrisome,” states Robert Wagner, President of NetFinancials Inc. “Throughout 2012, the trend has shown lower overall positive sales comps and fewer restaurants doing well. In Q1 2012, 81% of the restaurants we surveyed showed positive sales for the quarter. That dropped to 71% of restaurants reporting positive comps in Q3. Similarly, in Q1 2012, 37% of surveyed restaurants reported double-digit sales gains. That dropped to just 20% of restaurants reporting double-digit sales gains in Q3. By each metric we follow, sales gains at established Atlanta restaurants have declined during 2012.”
Wager adds that restaurant operators claim that a small drop in the number of diners is the primary reason that sales velocity is down. “At many such Atlanta restaurants, their sales trend is positive because they were forced to take modest price increases during the year,” he says. “In summary, in Q3 2012, for numerous Atlanta restaurants, the number of guests is down, but the average amount each guest spends – the average check – is up.”
The Sample
The 78 independently-operated, non-franchise restaurants surveyed were drawn from the metro Atlanta market. Total Q3 2012 sales volume was $43,221,903. The sample included restaurants in Atlanta’s fast-casual, casual and fine-dining segments that had been open at least 21 months.
