Restaurants Expect Slow Q1, Predict Stronger Sales Ahead:

A Rocky Start to 2025 for the Restaurant IndustryFollowing a positive fourth quarter in 2024, many restaurant chains entered the new year on a weaker footing. Freezing temperatures, widespread wildfires, and lingering consumer caution have led to declining sales in January, with many companies bracing for a tough first quarter. Fast-food chains such as McDonald’s, Chipotle, and Wendy’s have all reported lower-than-expected traffic at the start of 2025. According to Kenneth Cook, CFO of Wendy’s, weather-related disruptions and overall industry headwinds significantly impacted sales early in the year. Market research from Revenue Management Solutions found that fast-food net sales rose 3.4% in January, down from December’s 4.9% growth. Breakfast and lunch traffic saw notable declines, further straining the sector. Doug Fry, U.S. President of Subway, highlighted consumers' evolving spending habits, stating, “Customers are still looking for value and quality, but they are being more selective with their dining choices.”