In March, the restaurant industry saw a significant shift in consumer spending, as average monthly dining expenditure dropped 14% year-over-year to $184, driven mainly by consumers with annual household incomes below $200,000. While nearly 49% of respondents reported spending less than the previous year, the amount was moderated by increased spending among more affluent diners. The overall engagement in dining remained robust, with 91% of respondents indicating they dine out at least a few times a month, a notable increase from previous surveys. However, the frequency of dining out does differ based on demographic factors, with younger individuals and those earning more than $100,000 engaging with off-premises dining at much higher rates than their older and lower-income counterparts. 

Despite the decline in spending per household, certain brands demonstrated resilience by improving consumer perceptions through careful promotional strategies and enhanced accessibility. CAVA emerged as a leader in value perception, benefiting from a more measured approach to pricing compared to competitors, resulting in significant revenue growth. As many consumers cited cost as a primary concern for dining less often, CAVA’s ability to navigate the economic landscape resulted in a compelling demand for its offerings. Although nearly half of the surveyed brands had more diners reporting decreases in visitation than increases, brands like Cheesecake Factory and Starbucks still managed to improve patronage, indicating a gradual recovery in the restaurant industry as consumer costs and preferences continue to evolve. 

To read more, click the link below: Add ‘Value’ to the Restaurant Categories CAVA is Winning – QSR Magazine