With the rise of inflation, speculation is whirling as to how often consumers will continue to eat out at restaurants due to increase in prices across the board. One recent study is now proving this to be true. Middle income Americans are worrying more about their budgets now than they ever have before, reviewing the costs of all items that they elect to spend their money on. This is a direct impact from the recent rise in gas prices and increased inflation which is causing everything to become more expensive. Consumers are seeing a trickledown effect that starts at the top and impacts goods and services down to the lowest levels.
A recent study done by financial services firm Primerica sited middle American’s wanted to curb some of the inflation impacts and are doing this by “buying fewer restaurant meals, for takeout as well as eating on-site. About 57% said they anticipate cutting back in this area.” Consumers have also noted on cutting spending in other areas such as entertainment on subscriptions such as Netflix and Amazon Prime. Items that were once “luxuries” are now being reviewed by consumers who are weighing the options as to if they must remain in their lives for their individual lifestyles or if they are temporarily placed on hold, resuming activity on these cutbacks in the future.
Despite the surveyed results, many restaurant owners are not yet feeling these impacts as consumers are placing more value on eating out and the experience involved with this activity. Due to recent years, consumers have a lot of pent-up demand due to restrictions placed on society not allowing people to go out during the pandemic. As a result, many consumers cut back spending and saved money for a few years. People want to continue to go out and enjoy a meal in a public setting.
To read more, click the link: Inflation has the middle class already planning restaurant cutbacks, study finds (restaurantbusinessonline.com)