By Jorge Antonio Vázquez Buendía
May 3, 2024, 10:46 AM EDT
Research from Vericast, the marketing technology company, shows that 60% of consumers surveyed in the US will “switch” from a casual restaurant to fast food for less expensive burger prices.
Vericast notes that around 50 billion hamburgers are consumed in the United States each year, presenting a great opportunity for restaurants to reach consumers’ hearts through their stomachs at a reasonable price.
According to Vericast’s Restaurant TrendWatch 2024 report, the same is true for other fan favorites (pizza and tacos), with 55% of respondents switching to frozen pizza from the supermarket instead of restaurant pizza, and 55% opting for fast food tacos.
In particular, 67% say rising costs are making restaurant dining too expensive. Last year’s 64% increase shows that cost concerns continue to rise.
Vericast notes that while grocery and restaurant prices continue to rise even as inflation slows, restaurant prices are rising at a much higher rate than grocery prices: 5.1% annually versus 1.2%. 68% of respondents are switching from restaurant meals to supermarket foods to avoid rising costs, and more than 71% of Generation Z and millennials do so.
“The rising cost of dining out is testing the limits of what consumers can and will spend. “There is a notable decline in the number of consumers dining out, especially among consumers who have a household income of less than $75,000,” said Dana Baggett, CEO of Vericast’s Restaurant Division.
“As consumers intentionally spend less at restaurants, acquiring new customers should be a key area of focus for restaurant brands. With increasing competition for stomach share, I anticipate acquisition strategies such as offering deals and coupons will increase. “It’s the fastest way to drive incremental sales and traffic,” added Baggett.
For more details of the survey and its methodology, go here.
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