Restaurants: French have an appetite for cut-price dinners in divisive trend

Why it is the topic trending:

• Cost of Living Crisis Impacting Dining Habits: Rising inflation has led to French diners eating out less frequently, prompting some restaurants to explore more affordable menu options to attract customers.

• Emergence of "Anti-Crisis Menus": Restaurants like "The 6.90" in Paris are gaining popularity by offering main meals at significantly lower prices, such as €6.90, in response to economic pressures.

• Industry Debate Over Low-Cost Meals: This trend is sparking debate within the French restaurant industry, with proponents arguing it brings back diners and detractors fearing it will drive down prices and undermine profitability.

• Overview:

  • Rise of Low-Cost Restaurants: Restaurants in France are increasingly offering very cheap meals, exemplified by "The 6.90" in Paris.

  • Response to Economic Hardship: These lower prices are a reaction to the cost of living crisis, aiming to attract budget-conscious diners.

  • Popularity with Consumers: Restaurants offering these "anti-crisis menus" are experiencing high demand and serving hundreds of meals daily.

  • Divided Industry Opinion: While some see this as a way to revitalize the industry, others worry about the long-term impact on prices and profits.

  • Adapting Business Models: These low-cost restaurants often implement strategies like limited menus and self-service to keep prices down.

Detailed findings:

• The 6.90's Success: "The 6.90" in Paris offers main courses for €6.90 and has been serving 200-300 meals a day since opening in March.

• Limited Menu at The 6.90: The restaurant offers only two main courses (sausage and mashed potatoes or vegetable lasagne) and one dessert (€2.90 chocolate mousse).

• "Anti-Crisis Menus" in France: A small but growing number of French restaurants are serving cheap meals as a response to the cost of living crisis.

• Average Meal Cost Increase: The average cost of eating out in France rose by about 23% between 2022 and 2024.

• Decline in Dining Out Frequency: Four out of ten people in France reported eating out less often in the past year compared to 2019 due to rising costs.

• Bellevue Restaurant's Two-Tier System: The Bellevue near Limoges divided its restaurant into a higher-priced dining room and a "second-class" section offering a three-course meal with wine and coffee for €10 at weekday lunchtimes, which proved successful.

• Cost-Cutting Strategies: Restaurants like The 6.90 and Bellevue keep costs down by limiting menu options, negotiating with suppliers, and implementing self-service models (no waiters at The 6.90).

• Popular with Budget-Conscious Diners: The 6.90 is popular among those who find typical Parisian restaurants too expensive but dislike fast food.

• Three-Month Trial Planned for Permanence: The owner of The 6.90 initially planned a three-month trial but intends to reopen permanently after the summer due to its success.

• Industry Concerns: Thierry Marx, chairman of a hotel and restaurant owners' trade body, cautions that high turnover doesn't necessarily equal profit, and fixed costs remain a concern.

• Fear of Price Depression: Bernard Boutboul, a food consultancy chairman, described the "anti-crisis" menus as "very dangerous," fearing they could make diners unwilling to pay higher prices in the future, potentially harming the industry.

• Profit Margins at The 6.90: The owner of The 6.90 estimates that the cost of ingredients for each meal is 35% less than the selling price.

• Need for Multiple Locations for Profitability: The owner of The 6.90 believes he would need to open "three or four" similar restaurants to make a significant profit.

Key success factors of product (trend):

• Affordable Pricing: Offering meals at significantly lower prices, such as €6.90, directly addresses the cost of living crisis.

• Streamlined Operations: Limiting menu options and implementing cost-saving measures like self-service help maintain low prices.

• Meeting a Consumer Need: Catering to diners who want an alternative to fast food but cannot afford traditional restaurant prices.

• Perceived Value for Money: Customers feel they are getting a good deal, even with a limited menu and service.

• Fresh Ingredients (Perception): Restaurants emphasizing the use of fresh ingredients can build trust even at a lower price point.

Key Takeaway: In response to the cost of living crisis, a trend of offering very low-priced meals is emerging in French restaurants, exemplified by the success of The 6.90 in Paris. While popular with budget-conscious consumers and seen by some as a way to bring diners back, this trend is causing concern within the industry about its potential impact on prices, profits, and the long-term sustainability of the restaurant profession.

Main trend: The main trend is the emergence of very low-priced "anti-crisis" menus in French restaurants in response to the rising cost of living.

Description of the trend (please name it): The trend is "Budget Bistro Boom". This describes the increasing appearance and popularity of restaurants in France that offer significantly reduced meal prices, often around a specific low price point, as a direct reaction to the economic challenges faced by consumers due to inflation.

What is consumer motivation:

• Saving Money: The primary motivation is to be able to afford to eat out despite rising living costs and reduced disposable income.

• Seeking Value for Money: Consumers are looking for an alternative to expensive restaurants and fast food that provides a decent meal at a reasonable price.

• Not Wanting to Cook at Home (Sometimes): Even budget-conscious individuals may want a break from cooking and prefer an affordable option to dine out.

• Quick and Convenient Meal: The limited menu and often quick service style of these restaurants can appeal to those needing a fast and easy meal.

• Desire for Something Beyond Fast Food: Consumers might be seeking a slightly higher quality and more restaurant-like experience than traditional fast food, even at a budget price.

What is driving trend:

• Cost of Living Crisis and Inflation: The significant increase in the cost of everyday goods, including food, is forcing consumers to be more price-sensitive.

• Reduced Dining Out Frequency: Higher prices in traditional restaurants have led to fewer people eating out, creating an opportunity for lower-priced alternatives.

• Entrepreneurial Response from Restaurant Owners: Individuals are creating new business models to cater to this price-sensitive market segment.

• Potential for High Volume Sales: By offering low prices, restaurants aim to attract a large number of customers to compensate for lower profit margins per meal.

What is motivation beyond the trend:

• Accessibility of Dining Out: This trend could make the experience of eating at a restaurant more accessible to a wider range of people who might otherwise be priced out.

• Social Aspect of Dining: Even at a budget level, dining out offers a social experience that might be valued.

• Support for Local Businesses: Consumers might be motivated to support new, locally-owned restaurants that are offering affordable options.

Description of consumers article is referring to:

The article refers to budget-conscious diners in France, particularly in Paris, who are feeling the pinch of the cost of living crisis and are seeking affordable alternatives to traditional, more expensive restaurants.

Summary of Consumer Description: Primarily budget-conscious individuals in France, especially in urban areas like Paris, who are seeking affordable dining options that are a step up from fast food due to rising living costs making traditional restaurants less accessible.

• Who are them: Individuals and potentially families who are on a tighter budget and are looking for ways to save money on dining out due to the increased cost of living.

• What kind of products they like: They appreciate simple, filling meals that are offered at a very low price point. Fresh ingredients, even with limited menu options, are a plus. They are likely open to a no-frills dining experience if it means significant cost savings.

• What is their age?: The article mentions a 23-year-old consultant and his 26-year-old colleague enjoying The 6.90, suggesting the trend appeals to younger adults. However, the overall cost of living crisis likely affects a wide range of age groups.

• What is their gender?: The article does not specify gender as a significant factor in this trend.

• What is their income?: Likely lower to middle-income individuals who are more sensitive to price increases and have less disposable income for dining out. Students or those early in their careers, like the consultants mentioned, could be a key demographic.

• What is their lifestyle: Their lifestyle likely involves wanting to enjoy the experience of eating out occasionally but needing to do so on a budget. They might be looking for quick, convenient, and affordable meal solutions.

• What are their category article is referring shopping preferences: They are actively seeking out restaurants that offer significantly lower prices compared to the norm. They might be willing to trade off on menu variety and service for affordability.

• Are they low, occasional or frequent category shoppers: They might have been more frequent diners before the cost of living crisis but have now become more selective and are likely drawn to these budget-friendly options to continue eating out at least occasionally.

• What are their general shopping preferences-how they shop products, shopping motivations): They are highly motivated by price and value. They are likely to be actively looking for deals and cost-effective alternatives in various aspects of their spending, including food.

Conclusions: The "Budget Bistro Boom" in France reflects a direct response to the financial pressures faced by consumers. While providing an affordable dining option and attracting customers, this trend raises concerns within the restaurant industry about its potential long-term impact on pricing and profitability. The success of these establishments relies on high volume, streamlined operations, and meeting the needs of budget-conscious diners who still desire an alternative to fast food.

Implications for brands:

• Opportunity for Value-Focused Brands: This trend highlights a potential market for restaurant brands that can offer quality meals at very competitive prices through efficient business models.

• Need for Cost Optimization: Traditional restaurants might need to explore ways to optimize their costs to offer more affordable options without significantly impacting quality.

• Understanding Price Sensitivity: The article underscores the importance of understanding the price sensitivity of consumers in the current economic climate.

Implication for society:

• Increased Access to Affordable Food: This trend could make eating out more accessible to individuals and families with limited budgets.

• Potential Impact on Restaurant Industry Employment: Business models with reduced service (like self-service) could have implications for employment in the restaurant sector.

• Debate on the Value and Pricing of Food: The discussion around this trend might lead to broader conversations about the true cost of food and the sustainability of very low prices.

Implications for consumers:

• More Affordable Dining Options: Consumers benefit from having more choices for eating out that fit within their budget.

• Potential Trade-offs in Menu Variety and Service: They might have to accept limited menus and reduced service levels in exchange for lower prices.

• Increased Awareness of Dining Costs: This trend might make consumers more conscious of the cost of eating out and the different price points available.

Implication for Future:

• Potential for Continued Growth of Budget-Friendly Restaurants: If the cost of living crisis persists, the demand for such affordable dining options is likely to remain strong.

• Adaptation of Traditional Restaurants: Existing restaurants might feel pressure to adapt and offer more budget-friendly menus or sections.

• Innovation in Restaurant Business Models: We might see more experimentation with business models that focus on efficiency and lower operating costs to provide cheaper meals.

Consumer Trend (name, detailed description): The Economically-Driven Dining Shift: This trend describes how economic pressures, such as inflation and a rising cost of living, are directly influencing consumer behavior in the restaurant industry, leading to a greater demand for and adoption of more affordable dining options.

Consumer Sub Trend (name, detailed description): The "Value Over Frills" Diner: This sub-trend highlights a segment of consumers who are willing to forgo some of the traditional amenities and broader menu choices of full-service restaurants in favor of significantly lower prices for a satisfactory meal.

Big Social Trend (name, detailed description): The Rising Cost of Living and Its Impact on Lifestyles: Globally, many societies are grappling with increasing costs of living, forcing individuals and families to make adjustments to their spending habits, including on discretionary items like dining out.

Worldwide Social Trend (name, detailed description): Global Search for Affordable Food Options: The need for affordable food solutions is a global concern, and different countries and regions are seeing various responses to this challenge in their food industries.

Social Drive (name, detailed description): The Need for Financial Prudence and Value: Faced with economic uncertainty, consumers are increasingly driven by the need to be financially prudent and to seek the best possible value for their money in all aspects of their lives, including dining.

Learnings for brands to use in 2025:

• Understand Consumer Price Sensitivities: Brands need to be keenly aware of how economic factors are impacting consumers' willingness and ability to spend on dining out.

• Explore Efficient Operating Models: Restaurants might need to consider streamlining their operations to reduce costs and offer more competitive pricing.

• Highlight Value in Messaging: Even if not offering rock-bottom prices, emphasizing the value proposition of their meals will be crucial in attracting customers.

Strategy Recommendations for brands to follow in 2025:

• Consider Offering Value Menus or Sections: Implementing a dedicated section of the menu with more affordable options could attract budget-conscious diners.

• Optimize Supply Chains and Negotiate with Suppliers: Focusing on cost-effective sourcing of ingredients can help maintain profitability while offering competitive prices.

• Explore Technology and Self-Service Options: Implementing technology for ordering and payment, and considering self-service models where appropriate, can reduce labor costs.

Final sentence (key concept) describing main trend from article (which is a summary of all trends specified), and what brands & companies should do in 2025 to benefit from trend and how to do it. In 2025, the emergence of the "Budget Bistro Boom" in France underscores the significant impact of the cost of living crisis on dining habits, requiring restaurants and brands to adapt by exploring efficient operating models and value-focused menus to cater to increasingly price-sensitive consumers.

Final Note:

• Core Trend: Budget Bistro Boom: The increasing popularity of very low-priced restaurants in France due to economic pressures.

• Core Strategy: Offer Value and Optimize Costs: Restaurants and brands need to focus on providing good value for money and streamlining their operations to maintain profitability at lower price points.

• Core Industry Trend: Adapting to Economic Hardship: The restaurant industry is actively responding to the cost of living crisis by innovating and offering more affordable options.

• Core Consumer Motivation: Financial Prudence and Value Seeking: Consumers are primarily motivated by the need to save money and find the best value when choosing where to dine out.

Final Conclusion: The trend of cut-price dinners in France highlights the profound impact that economic realities have on consumer behavior and the restaurant industry. While these "anti-crisis menus" offer a lifeline to budget-conscious diners and are proving popular, they also present significant challenges and spark important debates about the sustainability and future of the restaurant profession. In 2025 and beyond, the ability to adapt to these economic pressures and find innovative ways to offer value will be crucial for survival and success in the food service sector.

Core Trend Detailed: description. The core trend, Budget Bistro Boom, represents a significant shift in the French dining landscape driven by the pressing economic realities faced by consumers. This isn't simply a matter of diners looking for a good deal; it's a direct response to a cost of living crisis that has made traditional restaurant prices increasingly prohibitive for a large segment of the population. The "boom" refers to the noticeable increase in the number and popularity of establishments that are offering main meals at exceptionally low prices, often around a specific price point like €6.90. These restaurants are often characterized by their no-frills approach, limited menus, and streamlined service models, all aimed at keeping costs down and passing those savings on to the customer. This trend signifies a fundamental change in how some consumers view the value proposition of dining out, prioritizing affordability above extensive choice or elaborate service. It also highlights the resilience and adaptability of the restaurant industry in seeking innovative solutions to remain viable in challenging economic times.

Key Characteristics of the Core trend:

• Extremely Low Price Points: Main courses are offered at significantly reduced prices compared to the average restaurant.

• Limited Menu Options: Restaurants often feature a very small selection of dishes to simplify operations and negotiate better ingredient prices.

• Cost-Saving Operational Models: Self-service, reduced staffing, and efficient use of space are common characteristics.

• High Customer Volume: These establishments rely on attracting a large number of diners to compensate for lower profit margins per meal.

• Focus on Essential Dining Needs: The emphasis is on providing a satisfying and filling meal rather than a comprehensive dining experience.

Market and Cultural Signals Supporting the Trend:

• Reported Success of Restaurants Like The 6.90: The high daily meal counts indicate strong consumer demand for these budget-friendly options.

• Consumer Surveys Showing Reduced Dining Out Frequency: The Ipsos poll data confirms that many French consumers have cut back on eating out due to costs.

• Direct Statements from Restaurant Owners: The anecdotes from owners like Matteo Balavoine and Laurent Berger illustrate the business rationale and consumer response to this model.

• Concerns Expressed by Industry Leaders: The warnings from Thierry Marx and Bernard Boutboul highlight the industry-wide awareness and debate surrounding this trend.

How the Trend Is Changing Consumer Behavior:

• Increased Willingness to Trade Off on Service and Variety: Consumers are accepting limited menus and self-service for the sake of affordability.

• Greater Price Sensitivity When Choosing Restaurants: Price is becoming an even more dominant factor in dining decisions.

• Potential Shift in Expectations for Dining Costs: There's a fear within the industry that consumers might become accustomed to these low prices.

• Exploration of Alternative Dining Options: Consumers are actively seeking out and supporting restaurants that offer more budget-friendly meals.

Implications Across the Ecosystem:

• For Brands and CPGs:

  • Opportunity to supply these budget-focused restaurants with cost-effective ingredients.

  • Potential need to adjust pricing strategies to cater to a more price-sensitive market.

• For Retailers (On-Trade):

  • Need to consider how to compete with or adapt to this trend.

  • Potential for a two-tiered system to emerge with high-end and budget-friendly establishments.

• For Consumers:

  • More affordable options for eating out.

  • Potential reduction in the quality or variety of meals available at the lowest price points.

Strategic Forecast:

• The Budget Bistro Boom is likely to continue and potentially expand as long as economic pressures on consumers persist.

• Traditional restaurants may face increased competition and might need to re-evaluate their pricing strategies.

• Innovation in restaurant business models focused on efficiency and cost reduction will likely increase.

Areas of innovation (based on discovered trend):

• Further Streamlining of Restaurant Operations: Implementing more technology and efficient processes to minimize costs.

• Creative Menu Planning Focused on Affordable Ingredients: Developing dishes that are cost-effective to produce while still being appealing.

• Expansion of Hybrid Models: Restaurants might offer both higher-priced and more budget-friendly options within the same establishment.

Final Thought (summary): The emergence of budget-friendly bistros in France is a clear indicator of the significant impact of economic challenges on consumer behavior and the adaptability of the restaurant industry. While offering much-needed affordable dining options for many, this trend also raises important questions about the long-term health and economic sustainability of the wider restaurant sector. As economic pressures continue, the ability to innovate and cater to price-sensitive consumers will likely be a defining factor for success in the French and potentially other restaurant markets.

Source: https://www.thetimes.com/world/europe/article/paris-restaurants-cut-price-dining-nzbng6nx2