Inflation could cause consumers to pull back on restaurant spending

(File image)

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.
 

 

Latest News

Avocados From Mexico readies for Cinco de Mayo promotions
Avocados From Mexico readies for Cinco de Mayo promotions

Vivid displays, discounts and recipe inspiration a part of the marketing effort to include avocados in the lead-up to Cinco de Mayo.

Groups urge U.S. to ban imports of Mexican avocados tied to deforestation
Groups urge U.S. to ban imports of Mexican avocados tied to deforestation

A letter from than 25 environmental organizations said many Mexican growers have created legal, longstanding avocado farms that could continue to supply the U.S. if avocados from recently deforested lands are banned.

Rural index in negative territory, survey says
Rural index in negative territory, survey says

The mood is subdued down on the farm, according to a survey of rural bankers.

Taylor Farms San Juan Bautista earns TRUE Certification for Zero Waste
Taylor Farms San Juan Bautista earns TRUE Certification for Zero Waste

Salinas, Calif.-based Taylor Farms is celebrating its fifth facility to receive TRUE certification, which is used by facilities to define, pursue and achieve their zero-waste goals.

Stemilt says latest Nielsen data shows opportunity for fuji apples
Stemilt says latest Nielsen data shows opportunity for fuji apples

The packer, grower and distributor of pears, apples and stone fruit says promotions and geo-targeting sales of fuji apples are keys to success this spring and summer.

Mission Produce to showcase diversified sourcing strategy at CPMA
Mission Produce to showcase diversified sourcing strategy at CPMA

Mission Produce will showcase The Mission Advantage and its diversified sourcing strategy at the Canadian Produce Marketing Association Convention and Trade Show, set for April 23-24 in Vancouver, British Columbia.