Rising costs and inflation are causing a shift in consumer dining habits, with customers moving away from upscale venues and takeaway pizza towards more affordable options like burger chains, chicken shops, and on-the-go bakeries.
Key points from the report:
Quick service restaurants (QSR): Have seen a 13% rise in customer spending from 2022 to 2024.
Takeaway pizza restaurants: Struggling to maintain market share due to increased costs, with an 11% rise in average transactions.
Chicken shops and fast-food restaurants: Customers spending an average of 21% and 18% more, respectively.
Casual dining restaurants: 13% drop in visits due to rising costs.
Upscale dining restaurants: 11% drop in visits, further demonstrating the impact of cost pressures.
Burger chains: 17% rise in transaction volume and 12% rise in overall customer spend, potentially due to their affordability and upscale dining environment.
City lunch spots: 9% reduction in visits due to increased costs.
High-end coffee shops: 14% drop in visits.
On-the-go bakery sector: 4% rise in total customer spending and 1% increase in transactions due to their cost-effectiveness.
Recommendations for dining brands:
Use data to understand changing customer behaviors: Identify how spending habits are changing and create tailored offers and rewards.
Focus on affordability: Offer value-driven options to attract cost-conscious consumers.
Adapt to changing consumption patterns: Consider the impact of hybrid working on lunch spots and coffee shops.
Overall, the report highlights the need for dining brands to be proactive and data-driven in their approach to adapt to changing consumer behavior in the current economic climate.
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