Consumers continue to prioritize restaurant usage despite economic pressures | Photo courtesy of Pexels/SpotOn POS
OK, time for a mid-Q2 restaurant consumer pulse check and, regrettably, things don’t seem any clearer than they have been.
Actually, they may be even murkier. That’s not to say they’re necessarily “bad,” however.
A new consumer insights survey from the National Restaurant Association shows that two-thirds of consumers are feeling good about their overall financial well-being so far this quarter, contradicting record-low consumer sentiment scores driven by ongoing concerns about higher gas prices, higher food prices, geopolitical tensions, record-level credit card debt, student loan repayments, etc., etc.
Zooming in a bit closer, the survey shows that 84% of consumers feel positive about their job, while 73% feel good about their ability to cover monthly expenses and 65% feel the same about their personal financial situation. A majority are also positive about their ability to save for the future, the amount of savings or investments they have, and the amount of debt they have.
Unsurprisingly, higher-income consumers feel more confident about their financial status: 81% of households making $100,000 or more feel positive about their financial well-being. That number falls to 71% for annual household incomes between $50,000 and $99,999 and to 56% of households making less than $50,000.
Overall, 67% of consumers feel positive right now.
And they’re translating that positivity to restaurants, as 56% of consumers have spent their discretionary money at a restaurant recently, while 50% ordered takeout or delivery from a restaurant. Nearly 40% ordered coffee or a treat from a nearby establishment
This is compared to less than 25% of consumers spending their discretionary income on apparel, movies, concerts, or electronics.
Consumers’ restaurant usage remained fairly steady, with 80% of all adults visiting an establishment in Q2, up 1% from Q1.
That said, those consumers are changing some of their behaviors. Nearly 40% of consumers said they are visiting restaurants less than they did three months ago, compared to 24% who visited more than three months ago.
Further, 35% said they are ordering fewer add-on items, like desserts or drinks, than they usually do, which is a 3% increase from Q1. Further, 34% of consumers said they’re visiting less expensive restaurants than they usually do, which marks a 2% increase from the first quarter.
The results from this survey echo other recent reports, including one from consumer intelligence firm Facteus showing that consumers dine out a lot more often than they think or admit, with the average consumer visiting such an establishment seven times a month. Also, new research from Revenue Management Solutions finds that 70% of QSR consumers’ dining behavior has either remained the same or increased recently, despite economic pressures, while nearly 30% of Gen Z consumers reported going out to eat more frequently.
Technomic’s research also indicates that restaurant frequency has picked up a little for households in the $50,000 to $75,000 annual income range. Forty-eight percent of that cohort reports visiting restaurants more than once a week, compared to 46% in 2023.
Clearly consumers are reluctant to pull back on restaurant experiences despite increasing pressure across the board.
This resiliency presents a major opportunity for restaurants, as consumers have shown a reluctance to pull back on such experiences despite increasing pressures across the board.
Technomic Senior Director of Consumer Insights Robert Byrne recently said the industry has a significant opportunity in such an environment because consumers are drawn to the social and entertaining experience restaurants provide.
“Consumers enjoy all that foodservice has to offer, and even the most cash-strapped consumers see an everyday value that the entire food service experience offers,” he said.
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