ATLANTA, GA – Dinova LLC reported today that overall restaurant spending by its corporate clients grew 8.3 percent year-over-year in the second quarter of 2014, supporting restaurants nationwide as they recovered from a challenging first quarter. Second-quarter metrics in both the restaurant and business travel industries reinforced Dinova’s results, as American companies continue to put staff on the road to deepen client relationships and win new business.
The average check from Dinova’s corporate clients increased 3.8 percent year-over-year in the second quarter, up to $53.92. Dinova’s clients, which include one-quarter of the country’s highest-travel-spending firms, spend more than $1.5 billion on dining and/or catering annually. Dinova’s nationwide network includes more than 10,000 independent and chain restaurants, encompassing all price levels and cuisines.
Several reports issued in recent weeks support Dinova’s data, including:
The Global Business Travel Association (GBTA) expects U.S.-generated business travel spending to increase 6.8% to $292.3 billion in 2014.
Even though analysts called the second quarter “lackluster,” figures from MillerPulse detailed the sixth consecutive month of year-over-year sales increases at American restaurants.
TravelClick’s report on U.S. hotel performance shows transient business bookings up 4.4 percent with an average daily rate increase of 4.2 percent.
Restaurants hired 33,000 people in June, with the National Restaurant Association sharing that restaurant employment is up 3.1 percent through the first six months of the year, nearly doubling the 1.7 percent increase in total U.S. employment.
“The trend lines continued in positive directions in the second quarter, with corporate dining increases keeping restaurants healthy in the midst of sluggish transient traffic,” said Dinova founder and CEO Vic Macchio.
Third Quarter Indicators Point to Continued Growth
GBTA reported that its proprietary index of business travel activity, the GBTA BTI™, is anticipated to “continue rising” for the remainder of the year. The National Restaurant Association’s Restaurant Performance Index, which tracks the health and outlook of the industry, recently rose to its highest level in more than two years, with results “indicating that restaurant operators remain optimistic about future business conditions.”
“Companies have more insight into their spend patterns than ever, so even as they acknowledge growing travel and dining expenses, they are aggressively seeking creative avenues to manage those increases,” said Macchio.
