Inflation could cause consumers to pull back on restaurant spending
Chicago-based data company Numerator has released a new study to understand the impact of inflation on recent and upcoming shopping behavior.
If inflation continues, the survey found that restaurant spending will likely decline for three out of four consumers.
With inflation up 5.4% in June compared with the prior year, there is substantial fear among consumers that inflation will continue and hike prices of groceries, services, and other goods, according to a news release.
“Over half of consumers have already changed purchasing behaviors in today’s inflationary environment,” Eric Belcher, CEO of Numerator, said in the release.
The release said a sentiment survey of 600 consumers conducted in June/July shows the following findings:
- Four in five (83%) of those surveyed said they noticed price increases on their commonly purchased groceries or household essentials in June and July;
- Two-thirds of consumers (66%) expect prices of groceries and household essentials to further increase in the next six months. According to the survey, 50% expect a slight increase, and 16% expect a significant increase in price
- More than half (54%) of consumers are moderately or significantly concerned about future price increases, with low purchasing power consumers 1.7 times more likely to say they were extremely concerned than consumers with high purchasing power (39% vs. 23%)
According to the survey, 55% of consumers said they had changed their shopping behavior due to price increases in the past month
The release said the top three strategies for managing an inflationary environment are:
- Switching to lower-priced brands;
- Pursuing promotions and discounts; and
- Cutting back on discretionary spending.
Bars and restaurants are the most popular choice for discretionary spending cuts regardless of purchasing power, the release said. Seventy-four percent of consumers plan reductions in bar and restaurant spending with further inflation.
