Although restaurant traffic declined for the seventh consecutive quarter in the first quarter of 2010, it was by far not the steepest decline in past months, according to The NPD Group, a Chicago-based markrte research firm.

Commercial restaurant traffic declined by 2 percent in the first quarter, and consumer spending slipped just below 0.3, which was last year's number.

"There are signs of improvement but the industry isn't out of the woods yet, and won't be until the economy stabilizes, the unemployment picture improves, and consumer confidence maintains positive momentum," says Bonnie Riggs, NPD's restaurant industry analyst. "Our foodservice forecast suggests there will be two more quarters of traffic weakness before the industry recovers traffic losses."

Improved performance in the morning meal daypart and among quick service restaurants, led by the pizza category, helped to soften overall industry traffic declines.

NPD's SalesTrac Weekly, which measures same store sales trends for 47 of the largest quick service restaurant and family-style chains, reported an increase in same store sales for March and April 2010, following declines over year-ago for the prior nine months.