We know consumers are trading down, but where are they headed?
Trading down looks a bit different in 2024!
Over half of Americas still report that restaurant prices are too high, and it’s getting worse in June (56%, +4pt versus May). During inflationary times, when management continues to take price, consumers are no stranger to looking for lower cost options: 23% report seeking out lower cost restaurants.
We wanted to understand what channels are winning and losing in the trade down game. Y’all said you wanted infographics… so here you go! Let’s dive in!
WHAT’S DIFFERENT:
Fast food as the “go-to” eroded in June. To be clear, burger, pizza and chicken represent the highest absolute percentages, yet there is a notable shift away, as shown in this infographic.
The channel shift is clearly headed towards less traditional channels: grocery and convenience stores.
Plus, with the value offers happening at restaurants like Chilis (3 for Me), consumers are shifting to Casual Dining as a lower cost option. AYCE Buffets are also seeing positive share shifting… the channel that many thought couldn’t survive the pandemic has come back even stronger!
WHY IT MATTERS
Consumers want to go out to eat but are making choices of where to spend their dollars
Pricing increases have not gone unnoticed by consumers
July data will be interesting as the Value wars heated up – we’ll be intently watching!
Those who find innovative ways to deliver joy will come out on top!
Check out the graphic below for the full breakdown!
AUTHOR BIO
Lisa W. Miller has over 30 years of consumer insights and innovation experience, collecting nearly a million consumer interviews qualitatively and quantitively. She conducts a monthly consumer sentiment survey along with custom research projects tailored to clients from restaurants & hospitality, retail, healthcare, and more industries.
Lisa conveys excitement, hope and real hands-on tools to revamp organizational goals and growth. She strategically transforms companies and improves bottom-line results by using the “DNA” of the Business of JOY.
Lisa is a 3-time EFFIE Winner for Advertising Effectiveness, recipient of the David Ogilvy Research Award, and author of the book, The Business of JOY, based on over 55,000 consumer interviews and countless hours spent interviewing business leaders and frontline employees. Her book gives a 360-degree view of the pandemic — translating insights into an actionable framework for the future. Lisa’s data became a leading indicator of economic recovery. According to Lisa, “Economic recovery and growth begin when JOY is greater than Fear.”
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