Economic Indicators: Are More Diners Trading Out?
New data from Chicago-based researcher Mintel suggests that more consumers have moved from spending less on food away from home to curtailing restaurant visits altogether.
-- Restaurants & Institutions, May 29, 2008
Mintel says that its research finds that more than half (54%) of consumers who say they regularly dine out are cutting back their dining dollars because of the weak economic climate. Additionally, 70% of those trying to cut back say they simply are dining out less often rather than visiting less-expensive restaurants or reducing spending (such as by skipping appetizers or desserts). “People aren’t trading down for cheaper or lower-quality food; they’re just trading out,” says Mintel Senior Analyst David Morris.
The news isn’t all bad: 75% of respondents to Mintel’s survey say they dined away from home at least once in the past week. Of those consumers, the average was 2.3 evening meals eaten away from home during the previous seven days.
Morris says price-sensitive restaurants still can fare well. “By highlighting cost savings, all restaurants can maintain steady business.”
In other economic-indicator news:
• The Conference Board says its index of consumer confidence fell to 57.2 in May from 62.3 in April, its lowest level in 16 years. The index nearly has dropped in half since July 2007.
• A survey conducted by allrecipes.com finds that 60% of respondents say they are spending more on supermarket purchases than they did one year ago, with 32% saying they are preparing more meals at home now.
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