Marketers currently rely on consumers to report on their favorite brands and behaviors. But what they say doesn’t always line up with what they do. To help brands gain a solid understanding of real-world foot traffic patterns, xAd launched it's first-ever Quick Service Restaurant (QSR) Foot Traffic Trends Report in May of 2016. From January 1 to March 31, 2016, xAd observed nearly 30 million visits to 12 top QSR brands, such as McDonald's, Subway, Starbucks and Burger King to see how its location intelligence data can help predict marketing trends, inform strategic business decisions and provide insights to brand strengths and opportunities.

1. Foot
Traffic
Trends
Quick service restaurants
Q1 2016

2. From January 1 to March 31, 2016, xAd observed foot traffic
to 12 top Quick Service Restaurant (QSR) brands to see how
location intelligence can predict marketing trends, inform
strategic business decisions and provide insights to brand
strengths and opportunities.
2
xAd Foot Traffic Trends — Q1 2016

3. The south is a promising market
for QSR brands—the region sees
over 20% higher visitation than the
national average.
Fast Food Resonates in the South
100
123
93 85
Q1 2016 QSR Visitation
(based on visitation per capita)
Q1 2016 QSR Visitation: Day of Week
SUN MON TUE WED THUR FRI SAT
Cheat Days Are for the Weekends
QSR visitation gradually increases as the week
develops, with the most foot traffic on Friday
for fast food and Saturday for fast casual.
Coffee Lovers Can’t Quit on Sundays
Coffee shops see less of a drop than other QSRs on this day.
Fast Food Fast Casual Coffee Shops
Over the course of Q1 2016, xAd observed nearly 30 million visits to fast food, fast
casual, and coffee shop business locations.
What Consumers Say
vs. What They Do
Marketers currently rely
on consumers to report on
their favorite brands and
behaviors. But what they say
doesn’t always line up with
what they do. Gaining a solid
understanding of observed,
real-world visitation patterns
can provide marketers with
the tools they need to plan
marketing initiatives.
3
xAd Foot Traffic Trends — Q1 2016

4. Mealtime Peaks
Overall, weekday QSR visitation
shows clear spikes of foot traffic
at typical meal times, lunch
(noon) and dinner (six).
Sitting Down for Lunch
Despite being more “sit-down” in
nature, fast casual foot traffic is
35% higher at lunch than dinner.
Constant Coffee Fix
Consumers are looking for a
caffeine boost not only in the
morning, but throughout the
day. This is a great upselling
opportunity for QSR brands that
sell coffee.
Q1 2016 QSR Visitation: Weekend Time of Day
Q1 2016 QSR Visitation: Weekday Time of Day
Midnight Munchies
Fast food locations see higher
foot traffic during late night
hours on the weekend than
on weekdays. This is a great
opportunity for brands that stay
open late to target consumers
looking for a post-dinner treat.
No Work, No Worries
Fast casual restaurants see
a longer period of increased
foot traffic during lunch on the
weekends when people have more
time to sit and enjoy their meals.
5:00AM
7:00AM
9:00AM
11:00AM
1:00pM
3:00pM
5:00pM
7:00pM
9:00pM
11:00pM
1:00aM
3:00aM
5:00AM
7:00AM
9:00AM
11:00AM
1:00pM
3:00pM
5:00pM
7:00pM
9:00pM
11:00pM
1:00aM
3:00aM
Fast Food
Fast Casual
Coffee Shops
Fast Food
Fast Casual
Coffee Shops
4
xAd Foot Traffic Trends — Q1 2016

5. From PDF
®
The King of Fast Food: McDonald’s
The fast food giant generated a third of foot traffic share
in the QSR market throughout Q1.
They can thank their all-day breakfast campaign for
helping them dominate the market. Same-store sales in
the U.S increased 5% with help of the popularity of the
all-day breakfast menu and McPick 2 promotions. First-
quarter earnings went above expectations for profit and
sales with earnings per share at $1.23.
32%
11%
10%9%
7%
7%
7%
5%
4%
3%
2% 2%
Q1 2016 QSR
Visitation
Share of
Foot Traffic
5
xAd Foot Traffic Trends — Q1 2016

6. The Road to Recovery
Both Subway and Chipotle experienced PR challenges in the second half of 2015. Foot
traffic patterns provide real-world proof of how each brand is recovering.
Q1 2016 SHARE OF FOOT TRAFFIC
Despite a well publicized former
spokesperson scandal in Q3 of 2015,
Subway showed strong visitation
performance in Q1. In fact, they saw
an uptick in foot traffic in March after
introducing a new rotisserie-style Chicken,
the first of their antibiotic-free poultry.
An E. Coli outbreak at several Chipotle
locations in Q4 2015 had a major impact
on visitation that continued into Q1,
putting Chipotle in last place for foot
traffic. While Q1 improvement was slower
than Subway, Chipotle’s efforts, including
attracting new customers with free
burrito coupons, will likely result in a
positive impact on Q2 foot traffic.
FEBJAN MAR
Share of Foot Traffic
9%
1% 1% 2%
9% 12%
6
xAd Foot Traffic Trends — Q1 2016

7. 22%
8%
11%
10% 9%
5%
9%
5% 4%
2% 2%
6%
30%
32%
25%
31%
35%
29%
37%
31%
26%
30%
From PDF
®
22% of Starbucks customers also go to McDonald’s,
whereas only 8% of McDonald’s customers also go to Starbucks
From PDF
®
McDonald’s Loyal Customers are Lovin’ it
McDonald’s has the most loyal customers — they are the least likely
consumers to also eat at other QSR brands
Less Likely to Visit Other Brands More Likely to Visit Other Brands
% of Customers Also Going to McDonalds
% of McDonald’s Customers Also Going to Other QSR’s
Share of Foot Traffic
7
xAd Foot Traffic Trends — Q1 2016

8. From PDF
®
Knowing how brands compare in terms of customer overlap can help inform
strategic marketing decisions.
FastFoodVarietySeekers
Patrons of these brands are
fast food junkies! They love
multiple QSR brands, no
matter the cuisine.
Casual Sit Down Diners
Fast casual diners eat out
less, but when they do,
they typically only visit their
favorite spot or other fast
casual locations.
Brand Loyalists
These consumers visit popular
brands with the most business
locations and are less likely to
venture out for variety.
A connection means an overlap in customer bases 30% or higher than average. The bigger the circle,
the higher their share of foot traffic. The bigger the connection, the stronger the audience overlap.
For example, if Wendy’s wanted to reach and acquire
new customers with similar audience profiles, their
best chance is to target Taco Bell or KFC customers,
who have similar fast food preferences.
Conquesting Opportunities
Know where to find the
low-hanging consumer
fruit for conquesting.
Location Affinities
Where is the Brand Love?
8
xAd Foot Traffic Trends — Q1 2016

9. These brands have a lower than average overlap in customers with other brands
tracked in the QSR visitation report. These patrons have lots of brand loyalty and
are less likely to venture out for variety; they instead visit one of the many business
locations of their chosen brand.
Customers of these brands visit many QSR locations. Both KFC and Taco Bell also
show strong overlap with other traditional fast food chains including Jack in the Box,
Wendy’s, and Burger King. Chipotle customers are more likely to frequent other fast
casual restaurants, as well as Starbucks for their morning coffee.
Keeping it in the Family
KFC and Taco Bell have a strong overlap
in customers. Both are owned by Yum!
Brands and are commonly located near
one another. Because of this, KFC and
Taco Bell customers are 3x more likely to
visit their sister brand.
Something to Taco ‘Bout
Chipotle customers love their Mexican
food. Many Chipotle customers also
visited Taco Bell locations in Q1.
Stick with what they know
Lots of QSR Love
Just how many locations are there?
44,672
1
36,000+
2
11,300
4
23,768
3
Location Affinities
®
1
Subway: Explore Our World 2
McDonald’s: Corporate FAQ 3
Starbucks: Loxcel Starbucks Map 4
Dunkin Donuts: Company Snapshot
9
xAd Foot Traffic Trends — Q1 2016

10. While they have similar customer bases, Chipotle and Panera Bread have different
visitation patterns. Both fast casual brands peak at lunch, but Chipotle sees an
additional spike at dinner while Panera is strong at breakfast.
Food for thought: Try something new or stick with what you’re good at?
Panera and Chipotle
customers are 2.2x more
likely to overlap than the
overall QSR population
Q1 2016 Fast Casual Visitation: Time of Day
5:00AM
7:00AM
9:00AM
11:00AM
1:00pM
3:00pM
5:00pM
7:00pM
9:00pM
11:00pM
1:00aM
3:00aM
Location Affinities
Try something new: To acquire new customers from Panera Bread, Chipotle could add breakfast
to their menu or Panera Bread could ramp up their dinner selection to compete with Chipotle.
Stick with what you’re good at: Rather than changing strategies, both brands may want to
focus their energy on what they’re good at to make their loyal customers happy – Chipotle can
deliver strong dinner offerings while Panera can build out their breakfast brand. Considering the
customer overlap, it may even make sense for the brands to plan business locations nearby each
other to give their mutual customers plenty of meal-time options.
Chipotle
Panera Bread
10
xAd Foot Traffic Trends — Q1 2016

11. Dunkin’ Donuts had an especially pronounced spike of foot traffic in the morning,
whereas Starbucks shows a more gradual increase throughout the day. Coffee drinkers
are loyal to their brand of choice, and even their coffee drinking behaviors differ, so
conquesting between these brands may prove difficult.
Coffee Drinkers don’t
overlap – Starbucks
and Dunkin’ Donuts
have less than 10% of
the same visitors
Q1 2016 COFFEE SHOP VISITATION Visitation: Time of Day
5:00AM
7:00AM
9:00AM
11:00AM
1:00pM
3:00pM
5:00pM
7:00pM
9:00pM
11:00pM
1:00aM
3:00aM
Northeast Runs on Dunkin’
Dunkin Donuts is #1 in the
Northeast – even seeing
more foot traffic than QSR fan
favorite, McDonald’s
Wild Wild West
While Starbucks has a notable presence nationwide, their
stronghold in the West, likely thanks to the company’s
Seattle roots. The Western US sees nearly as much foot
traffic to Starbucks as all three other regions combined!
Location Affinities
Dunkin’ Donuts
Starbucks
The Regional Breakdown
11
xAd Foot Traffic Trends — Q1 2016

12. Seasonal Impacts
The Blizzard of 2016
Time of year can influence consumer behavior, especially during specific seasonal
impacts, such as weather patterns and holidays.
Winter storm Jonas was the single biggest
snowstorm on record for at least six
locations in the East. It brought with it 18-
40 inches of snow in some areas, 55 MPH
winds and almost 9,000 canceled flights.
Better weather and attractive discount
deals in the QSR sector likely brought
more people into restaurants in February,
helping the industry to get 3% same-store
sales growth for the month.
Good weather tends to generate higher
sales in the wintertime — or at least, the
lack of bad weather ensures customers
can eat out unaffected by the elements.
Q1 Week Over Week Visitation
3-JAN 7-FEB10-JAN 17-JAN 14-FEB 6-MAR 13-MAR 20-MAR 27-MAR24-JAN 21-FEB 28-FEB31-JAN
Major blizzard hits
the east coast 1/22
Uptick in foot traffic
after President’s Day
Slight drop on
Easter Sunday 3/27
12
xAd Foot Traffic Trends — Q1 2016

13. Following Winter Storm Jonas hitting on Friday 1/22, QSR locations in the states most
impacted by the storm saw a significant drop in visitation compared to normal January,
Saturday foot traffic.
From PDF
®
Casual Sit Down brands
experienced a
drop off in foot traffic
Visitation to Fast Food Variety
Seeker brands fell overall
Brand Loyalists were the least
impacted by the storm, only
dropping
Sitting Down Gets the Cold Shoulder
The restaurants that encourage a longer mealtime, such as Panera,
Chipotle, and even Chick-fil-A, see more of a negative impact during
stormy weather. When bad weather hits, consumers are less likely
to want to sit down for a meal. And if they venture out, they don’t
want to stay out for long. Brands can prepare for future storms by
offering quick and convenient grab go deals.
Includes visitation from West Virginia, Virginia, Maryland, New York, Pennsylvania, New Jersey, Connecticut, Delaware, Rhode Island, Massachusetts
Loyalty Can’t be Iced Out
The brands with the most loyal, and habitual client base
including McDonald’s, Starbucks, Subway, and Dunkin’
Donuts, still lost foot traffic because of the storm, but less
so than other QSR locations – showing just how much of
an impact location loyalty can have on a business.
Seasonal Impacts
The Blizzard of 2016
East Coast Blizzard Impact
(Drop in Visitation Following Winter Strom Jonas)
50%
57%68%
13
xAd Foot Traffic Trends — Q1 2016

14. ABOUT THE FOOT TRAFFIC TREND REPORT
Every day, consumers are becoming more mobile – both in their commerce
behavior and their overall dependence on smartphones for decisions. The key
to understanding these consumers is location. After all, how consumers move
throughout their days says a lot more about their needs and intent than what
they say, or even the websites they visit or the apps they use.
xAd’s Foot Traffic Trends Report offers real-life, real-time insights into consumer
location behavior. This deep dive into foot traffic over the course of the quarter
shows location affinity – where people are actually going, rather than where
they say they have been.
The data in this report represent geo-precise ad requests observed in xAd’s platform
mapped back to defined business locations. Each ad request represents a real consumer
on their smartphone while at a QSR restaurant. All reported visitation trends are indexed
to average foot traffic performance.
The analysis was conducted on 30 million unique consumer visits between January 1
and March 31, 2016.
The QSR Category in this report contains the following brands:
From PDF
®
14
xAd Foot Traffic Trends — Q1 2016

15. About xAd
xAd is the global leader in location intelligence that drives retail sales — unlocking opportunity in the
90% of retail transactions that are still completed offline. By leveraging a mobile device’s current or
past location data, xAd can provide in-store visitation insights by market, brand and even by specific
competitors. It is through this first party data and intelligence that xAd can interpret the most relevant
moments to introduce a brand’s message, providing a more personalized and meaningful mobile ad
experience to consumers while impacting the point of decision — driving in-store foot traffic and sales.
Each month, xAd’s patented location solutions help marketers reach unprecedented scale with access to
over 500 billion meaningful mobile moments, 325 million people at nearly 100 million unique places and
points of interest globally. With xAd, marketers can finally close the gap between online activities and
offline sales. Learn more: http://www.xad.com.
Copyright © 2016 xAd, Inc. All rights reserved.
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