Despite concerns about inflation and a recession, restaurants are preforming well. The rate hikes are also an indicator of a strong and stable economy. According to the CEO of Texas Roadhouse, Jerry Morgan, their restaurants are seeing seasonal attendance similar to what they were seeing in 2019. Although sales have dipped in August, “it appears that more people are getting back to their normal routines when it comes to dining habits, work schedules, and vacations,” Morgan said. The sales trends remain flat but not up or down which is a good sign and means the economy is still in fact strong.
On the flip side, some customers are saying they are not getting as much value for what they are spending. This is the perception due to inflation and the cost of goods, but it is not to say that people are deciding not to get their typical take-out. Baby Boomers are trending more towards getting take-out as they have changed their behaviors due to the pandemic. It seems people are still purchasing from restaurants but doing so in various ways such as delivery vs. going to the restaurant and sitting down.
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