Inflation and record-high gas prices are beginning to affect one of Americans’ favorite pastimes – eating out.
Research by Acosta, a marketing firm in Jacksonville, found that 54 percent of Americans report dining out less. When they do go out, they are more selective in where they go and what they order. About a third of those surveyed said they’re choosing less expensive restaurants or less expensive menu items when they dine away from home.
This is a blow to the restaurant industry just beginning to recover from shutdowns during the covid-19 pandemic.
“COVID-19 hit the foodservice industry hard,” said Travis King, President of CORE Foodservice. “While recovery remains on track for 2024, consumers are feeling the pinch of inflation and reacting accordingly. To continue participating in dining out activities, many are sharpening their focus on costs.”
Food quality is still the main driver in how Americans choose a restaurant, but the price has now replaced menu variety as the second-most important factor.
Although consumers are choosing to eat out less often or dine more frugally, they haven’t indicated that they’ll completely stop eating out even when money is tight.
“Consumer priorities are evolving, but interest in dining out remains stronger than expected during an inflationary period,” King said. “This is largely due to pent-up demand resulting from COVID-19 and an increased reliance on foodservice as employees return to the office.”
All of this could change, of course, as inflation continues to tighten cash flow for many families. Service and experience will become more necessary to justify spending more money.
“Inflation’s tipping point is yet to come,” King said. “As financial strain worsens, quality service is becoming increasingly important. Providing a valuable dining experience will be critical to incentivizing cost-wary consumers in the coming months.”
The information for Acosta’s survey was gathered during March.
