Are Restaurant Prices to HIGH?

 

In the face of persistent inflation, consumers are increasingly turning to promotions, discounts, and loyalty programs to manage the rising costs of dining out. A significant 78% of Americans concur that escalating menu prices have made dining out more challenging this year. 

Once again StevenJohnson Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, wants to share some important insights; this time recent findings from Givex’s 2024 Restaurant and Dining Trends Survey, with a particular focus on the price-value-service equilibrium and its resulting consumer discontinuity. 

The economic turbulence has inevitably reshaped how people approach dining out. While there's a heightened sensitivity to price, there's also a growing appreciation for value-added services such as loyalty programs and promotional offers. These tools are proving instrumental in helping restaurants maintain customer engagement during these tough times. 

Promotions are a major incentive for 86% of Americans to dine out, closely followed by coupons and discounts at 81%. Additionally, loyalty programs hold value for 65% of respondents, and nearly half (47%) are drawn to Happy Hour deals. This trend clearly indicates consumers' efforts to optimize value in response to rising menu prices and the ongoing impacts of inflation. 

Key insights from the survey include: 

1.       Inflation Impact: Higher menu prices have made dining out more challenging over the past year, as agreed by 78% of Americans. 

2.       Shifts in Dining and Delivery: About 41% of respondents are dining out less frequently, while 45% have reduced their food delivery orders compared to last year. Meanwhile, 60% report cooking more at home. 

3.       Loyalty Programs: Almost half of all Americans prioritize grocery loyalty programs, with 49% rating them as most important. Overall, 87% of Americans participate in at least one loyalty program. 

4.       Technology Adoption: There's a growing acceptance of AI, specifically conversational AI-driven product recommendation technology, in the restaurant industry, with 52% of Americans comfortable with its implementation. In the 2024 Restaurant Technology Study co-sponsored by Givex, 63% of restaurant operators surveyed said they are planning to use or add AI or automation/robotics into their operations. 

Do You Want To Build A

Larger Share of Stomach

As we navigate through this period of economic adjustment, understanding consumer priorities is crucial for businesses aiming to enhance customer experiences and drive sales. The insights from the 2024 survey provide critical data that can assist restaurant owners and operators in making strategic decisions that align with customer preferences. 

For more information about the technology solutions offered by Givex, please visit their website. Remember, the key to success in these challenging times is finding the right balance between price, value, and service. Stay tuned for more insights from your Grocerant Guru® and Foodservice Solutions® team. 

Invite Foodservice Solutions® to complete a Grocerant ScoreCard, or for product positioning or placement assistance, or call our Grocerant Guru®.  Since 1991 Foodservice Solutions® of Tacoma, WA has been the global leader in the Grocerant niche. Contact: Steve@FoodserviceSolutions.us or 253-759-7869