Rising Restaurant Food Prices: According to Vericast’s 2024 Restaurant TrendWatch survey, restaurant food prices are climbing at a much higher rate (5.1% annually) compared to groceries (1.2%). This inflation is affecting consumer choices.
Trading Down to Grocery Store Food: A significant majority (68%) of survey respondents are opting to buy food from grocery stores instead of dining out due to rising costs. Gen Z and millennials (71%) are particularly likely to make this switch.
Cost Concerns: Over two-thirds (67%) of consumers find restaurant dining too expensive due to increased food costs. This percentage has slightly increased from the previous year.
Specific Behavior Changes:
60% of consumers will “trade down” from casual dining to fast food for less expensive options.
55% switch to frozen pizza from the grocery store instead of ordering pizza from a restaurant.
Fast food tacos are preferred over fast-casual dining by the same number of respondents.
Importance of Discounts and Coupons: Coupons and discounts continue to play a crucial role for consumers:
51% of respondents are enticed to try a restaurant with a coupon or discount.
49% use deals to choose between restaurants.
30% won’t try a restaurant without a coupon or discount offer.
Inspiration for At-Home Cooking: Many consumers are cooking more at home. TikTok, in particular, inspires 29% of respondents to make restaurant copycat meals at home.
Restaurant Apps: Dining apps attract 25% of diners, especially among Gen Z, parents, and frequent diners. Over half (52%) have two or more restaurant apps on their mobile phones.
In summary, rising restaurant prices are prompting consumers to explore cost-effective alternatives, and discounts remain influential in their dining choices.
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