As food prices rapidly rise, consumers are rethinking how they spend at restaurants.
By the Numbers
Research from PYMNTS’ new study, “Consumer Inflation Sentiment: July 2022 — Consumers Pull Back and Prepare for the Long Haul,” which draws from a survey earlier this month of more than 3,700 consumers, found that 87% have made at least one change in their restaurant spending habits due to price increases.
Related news: New Study Finds 70% of US Consumers Cutting Back on Nonessential Retail Purchases
The Data in Action
Major restaurant chains are seeing some consumers, especially lower income customers, making changes to how they order. On a call with analysts Tuesday (July 26) discussing the McDonald’s second-quarter fiscal year 2022 financial results, company President and CEO Chris Kempczinski addressed this trend.
“We are seeing some trade down,” Kempczinski said. “We’re seeing customers, and specifically lower income customers, trade down to value offerings and fewer combo meals.”
However, he later argued that the effects of this shift are somewhat mitigated by higher-earning consumers’ trade downs from more expensive dining options.
Read more: As Restaurant Prices Rise, Fast Food Chains See Lower-Income Consumers Pinching Pennies
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