The article discusses the evolving nature of the value equation in the restaurant industry.
Key points:
Price sensitivity remains similar to pre-pandemic levels: Despite inflation and rising costs, consumers are about as price-conscious as they were before the pandemic.
Shifting value perception: Customer perception of value in different food sectors has shifted, with a decline in grocery value perception and a narrowing gap between QSRs and full-service restaurants.
Moving away from discounts: Many restaurants are shifting from discounts to other forms of value, such as loyalty programs and omnichannel accessibility.
Importance of experience and convenience: For full-service dining, the experience and atmosphere are becoming increasingly important. In the limited-service sector, omnichannel convenience is a key factor.
Impact of third-party delivery: While third-party delivery offers convenience, it can also be expensive. Many customers are choosing to order directly from restaurants to avoid fees.
Dynamic pricing: The potential rise of dynamic pricing in QSRs is a controversial topic, as it could lead to customers strategically changing their behavior to get the best value.
Overall, the article suggests that the consumer value equation is more complex than ever before, with factors like price, convenience, experience, and occasion all playing a role. While price remains a significant factor, it is no longer the sole determinant of value for many consumers.
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