Understanding Shifting Consumer Dining Habits: Impacts on the Restaurant Industry
Explore the changing landscape of consumer dining preferences and its effects on restaurants. Learn about the rise of at-home meal occasions and the shift towards quick-service restaurants.
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Rise of At-Home Meal Occasions
In recent times, there has been a notable shift in consumer behavior towards at-home meal occasions. A significant 69% of consumers have reported an increase in eating at home, with a staggering 85% citing cost-saving as the primary reason for this change. This surge in at-home dining can be attributed to a 39% decline in consumer incomes, as revealed in recent reports. Moreover, a majority of 79% of consumers anticipate tariffs leading to price hikes, further propelling the preference for home-cooked meals.
Quick-Service Restaurants and Consumer Preferences
Amidst the trend of increased at-home dining, 26% of consumers have shown a preference for eating more frequently at quick-service restaurants (QSRs). This shift aligns with the strategic efforts of QSRs to offer enticing promotions like buy-one-get-one deals and value meals, a tactic that gained momentum especially during the past summer. By adapting to consumer needs and preferences, QSRs are capitalizing on the changing dining landscape to maintain their market relevance.
Photo by Angel Luciano on Unsplash
Breakfast and Dining Behavior
Breakfast emerges as the meal most commonly prepared at home, with 75% of consumers opting for home-cooked morning meals. This high percentage highlights an opportunity for restaurants, particularly QSRs, to innovate and capture more breakfast meal occasions. Despite the challenge posed by consumers choosing to eat at home during breakfast, there remains untapped potential to drive growth in this daypart through strategic offerings and promotions.
Income Influence on Dining Habits
Consumer dining habits are significantly influenced by household income levels. Reports indicate that nearly half, 41%, of consumers have a monthly disposable income below $200, underlining the importance of affordability in dining choices. Interestingly, even amidst financial constraints, takeout remains a popular luxury spending item, with 57% of consumers allocating budget for to-go food each month. High-income households continue to spend substantially on dining out and takeout, indicating a variation in spending behavior based on income brackets.
Photo by Angel Luciano on Unsplash
Insights from Consumer Reports
Studies conducted by both KPMG and Attest shed light on the evolving consumer landscape. KPMG's survey of 1,516 U.S. consumers highlighted the recalibration of consumer spending habits towards more selective and cost-conscious choices. On the other hand, Attest's report, based on 2,000 U.S. consumers aged 18 to 67, emphasized the enduring reliance of restaurant spending on household income, showcasing the dynamic interplay between consumer finances and dining preferences.
