Demand for eating out remains positive, but restaurants need to compete more aggressively for business as consumers' budgets tighten. Rising menu prices and surcharges are impacting tips.
ATLANTA , May 10, 2024 /PRNewswire/ — Consumers love restaurants and 64% say they would eat at or order from a restaurant every day if they could manage, but inflation and ’s long-term battle has curbed spending and employee tips. On average, a consumer now spends 30% of his personal or family food budget on restaurants each month, down from his 40% in May 2022. Nearly two in five (38%) say they are spending the same or more on a restaurant meal compared to the last time. There will be a year, but the tip will be less. This is based on a national survey conducted by Pop Menu in April 2024 targeting 1,000 US consumers.
Restaurants generated $93.7 billion on a seasonally adjusted basis in March 2024, according to preliminary data from the U.S. Census Bureau. Industry revenues increased in February and March after declining in December and January, but still fell short of November's all-time high of $94.2 billion.
“Revenues in the restaurant industry remain strong, but competition for guests has intensified in recent months,” said Brendan Sweeney, co-founder and CEO of Pop Menu. “Consumers are doing their homework: 80% go online to research restaurant menus and evaluate cuisine, cost, convenience, and other dining decision factors.Successful and growing restaurants ) offering more budget-friendly menu options and discounts, and 2) actively engaging consumers across digital channels to encourage them to order online or in person.”
What consumers want:
More leftovers: Half (52%) of consumers say they have leftovers for another meal because they prioritize hearty restaurants. Bigger, better deals: 66% of consumers choose restaurants that offer more affordable menu items or special offers. Reduced fees: 67% of consumers prefer to order directly from a restaurant's website instead of a third party, mainly to avoid fees and take advantage of cheaper menus. More perks: 45% of frequent restaurants offer loyalty programs.
Research method
Popmenu conducted an anonymous national survey of 1,000 U.S. consumers ages 18 and older from April 16 to April 17, 2024.
About the pop menu
Popmenu is a leader in restaurant technology with a mission to make profitable growth easier for all restaurants. Digital marketing, online ordering, and on-premises technology is the focus of a powerful product suite that incorporates artificial intelligence (AI), automation, and detailed data about guest preferences. The company integrates the tools needed for guest engagement and serves as the digital control center for his more than 10,000 independent restaurants and hospitality groups across the US, UK and Canada. For more information, please visit popmenu.com.
Media contact:
jennifer glass
Popmenu Marketing Manager
[email protected]
SOURCE Pop Menu Co., Ltd.