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: [email protected] or 253-759-7869