Main Theme: Consumers Are Trading Down and Dining Out Less
Cost-Conscious Choices: Due to rising food costs, consumers are increasingly choosing cheaper options to save money:
Trading casual dining for fast food for favorites like burgers, pizza, and tacos.
Opting for frozen grocery store options when they crave pizza.
Cooking more at home instead of eating out.
Price Sensitivity: 67% of consumers find restaurant dining too expensive, which signals a growing concern compared to last year's report.
The Role of Deals and Digital Channels
Coupons are Key: Deals remain a vital way for restaurants to attract customers.
Over 50% of people are influenced to try a new restaurant by a coupon or discount.
30% won't try a new restaurant without a deal.
Digital Influence Grows: Restaurants must leverage digital channels effectively:
Social media (especially TikTok) drives interest in home cooking as an alternative.
Restaurant apps are widely used and play a role in attracting diners.
Implications for Restaurants
Emphasize Value: Focus on offering good deals and promotions to compete. Consider value meals or limited-time offers.
Target the Right Audience: Gen Z, millennials, and those with lower incomes are most affected by price increases. Tailor marketing to their needs and preferences.
Digital Presence Matters: Maintain a strong online presence on social media and restaurant apps. Promote deals and create engaging content.
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