- Demand for dining out remains positive, but tighter consumer
budgets mean restaurants will need to compete more aggressively for
their business
- Higher menu prices and added fees are affecting tips
ATLANTA, May 10, 2024 /PRNewswire/ -- Consumers love
restaurants—64% said they would dine at or order from restaurants
every day if they could manage it—but a prolonged struggle with
inflation is tempering their spend and gratuities for staff. On
average, consumers today spend 30% of their individual or family
food budgets on restaurants each month, down from 40% in
May 2022. Nearly 2 in 5 (38%) say
they are spending the same or more on restaurant meals compared to
last year, but are tipping less. This is according to Popmenu's
nationwide study of 1,000 U.S. consumers in April 2024.
Eating and drinking places generated $93.7 billion on a seasonally adjusted basis in
March 2024, according to preliminary
data from the U.S. Census Bureau. Following a decline in December
and January, industry revenue grew in February and March—but is
still trailing a $94.2 billion high
in November.
"Although restaurant industry sales remain healthy, competition
for guests has intensified over the last several months," said
Brendan Sweeney, CEO and Co-founder
of Popmenu. "Consumers are doing their homework: 80% research
restaurant menus online as they assess dishes, cost, convenience,
and other drivers of dining decisions. Restaurants who are winning
and growing are 1) offering more budget-friendly menu options or
discounts and 2) actively engaging consumers across digital
channels to entice them to order online or in person."
What consumers want:
- More leftovers: Half (52%) of consumers say they
prioritize restaurants that offer bigger portions, so they have
leftovers for another meal.
- Bigger, better deals: 66% of consumers choose
restaurants that provide more affordable menu items or special
offers.
- Fewer fees: 67% of consumers prefer to order directly
from a restaurant's website vs. a third party, primarily to avoid
fees and take advantage of cheaper menus.
- More rewards: 45% frequent restaurants that offer a
loyalty program.
Survey Methodology
Popmenu conducted an anonymous,
nationwide study of 1,000 U.S. consumers, ages 18 and older, from
April 16 to April 17, 2024.
About Popmenu
As a leader in restaurant
technology, Popmenu is on a mission to make profitable growth easy
for all restaurants. Digital marketing, online ordering, and
on-premise technologies headline a powerful product suite infused
with artificial intelligence (AI), automation, and deep data on
guest preferences. The company consolidates tools needed to engage
guests, serving as a digital control center for more than 10,000
independent restaurants and hospitality groups in the US, UK, and
Canada. For more information,
visit popmenu.com.
Media Contact:
Jennifer
Grasz
Head of Marketing, Popmenu
Jennifer.Grasz@popmenu.com
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SOURCE Popmenu Inc.