Today I was reading some articles online and I found this article related to eating out in the down economy. It talks about how consumers are ready to dine out again! They are more willing to eat out more than in the past! This is a good sign to restaurant owners and other business owners.
If consumers are more willing to eat out with their family then they will be more likely to continue shopping at high-end stores and they will buy more expensive products. This is also in a time where there are a great amount of deals going on for customers. You can go to Logan’s and get 2 entrees for just $13. They are trying to appeal more with specials to get more business. This trend is working and bringing guests back to the store.
CHICAGO (April 13, 2010) Consumer behavior patterns are shifting for the better for restaurants, according to a new study conducted by market research firm The NPD Group, with less consumers cutting back on dining out, and fewer customers searching for deals.
Data collected for a recent study, “Light at the End of the Tunnel … What Can We Expect,” found that respondents were less focused on controlled spending and price points or deals at restaurants during a March study, compared with responses in a June 2009 survey. Fewer respondents also said they were trading down in restaurant selections or sacrificing visits to restaurants.
“It’s clear from our research and other indicators that consumers are feeling more positive about the economy,” Bonnie Riggs, NPD’s restaurant industry analyst said in a statement. “Our survey findings, combined with other publicly reported information on restaurants’ improving status, suggest a move toward recovery may be starting soon if it is not already underway.”
About 27 percent of NPD respondents said in March that they chose less expensive restaurants more often, down from the 32 percent of respondents that said they were changing their restaurant habits a year ago. The number of respondents that said they were looking for good restaurant deals also fell, from 29 percent a year ago to 22 percent in the latest survey. Respondents that said they visited restaurant less often also fell, from 18 percent a year ago to 14 percent in March.
In addition to the consumer behaviors beginning to favor restaurants, NPD found that same-store sales trends at quick-service and family-dining chains are at their most positive levels in the last 11 months. Based on the firm’s SalesTrac Weekly research, NPD said that of the 47 quick-service and family chains it follows, same-store sales have increased during four of the last six weeks.
Still, Riggs said the industry has a tough road ahead, as restaurant industry traffic fell 3 percent for the latest year ended in February, marking 14 consecutive months of declines.
“Our forecasting model shows that the industry will remain weak for at least another seven months,” Riggs said. “Additionally, once losses moderate, it will likely take more than a year to recover lost visits, but there are strong indications that the industry is now moving in the right direction.”