The Global downturn - With countries emerging from the global downturn at different speeds, it’s important to note that the majority of consumers do plan on spending less on eating out for the foreseeable future.*
People are going to be very careful with their discretionary spending. Some countries experienced a phenomenon called ‘The Lipstick Effect’. This occurs when consumers make smaller indulgent purchases but forego more extravagant expenditure on larger items or bigger occasions. Undoubtedly, consumers have been trading down but there is also a renewed desire to invest more energy into finding better value wherever they are and whatever they are spending their hard-earned money on.***Mintel Global Research 2009
More Deals - The figure does fluctuate across the world, but as many as a quarter of all consumers are coping with the downturn by only visiting restaurants that offer discounts on their menus. Vouchers for money off of certain meals on the menu are currently considered to be the most popular incentive.
Greater Competition - The scramble to attract guests and capture their eating out spend has led to a much more competitive market. It is obvious that chain operators who benefit from having a bigger marketing resource have been winning in markets across the world.
Healthier menu designs and clever pricing strategies are being used to attract guests and many of them are aware of the great eating out deals that are available. However, if they are not, they are certainly ready to hunt these deals and discounts down!