As consumers bear the burden of inflation, PYMNTS Intelligence shows that nearly all people living paycheck to paycheck are making trade-offs when it comes to Restaurant expenses.
In numbers
The latest episode of the PYMNTS Intelligence series “New Reality Check: The Paycheck-to-Paycheck Report,” the “How consumer inflation perceptions are forcing many to switch to cheaper productsThe study’s edition is based on a survey of more than 2,800 U.S. consumers in July. The study examines, among other things, how price increases affect spending in various categories.
The results show that consumers Who are People who are struggling to pay their monthly bills are limiting their restaurant visits even more than their retail or grocery shopping.
Specifically, 98% of those who live paycheck to paycheck and have trouble paying their bills said they have taken steps to cope with price increases when shopping at restaurants. 95% of those who live paycheck to paycheck and have no trouble paying their bills said the same, as did three-quarters of those who do not live paycheck to paycheck.
Meanwhile 97%, 92% And 73% said have Measures taken to address inflation in retail purchases, and 96%, 94% And 72% said the same from food products.
The data in context
In fact, the world’s largest restaurant companies see consumers around the world Take cost-saving measures, such as reducing their frequency and switching to lower-cost products.
Starbucks, for example, shared in its recent Income The worldwide Comparable sales decreased 3%, reflecting a 5% decline in transactions despite a 2% increase in average checkout, while comparable sales in North America declined 2%. Nevertheless, the company’s food brands performed well.
“We are operating in a challenging consumer environment. You can see the impact of that in out-of-home consumption,” CEO Laxman Narasimhan said on the company’s earnings call. “However, if you look at our business at home, (in the) grocery stores with our brands, you see an increase in volume.”
McDonald’s also referred in its recent Financial reportHere, too, there was a slight decline in sales.
“We warned last year about more demanding consumers, particularly in low-income households,” CEO Chris Kempczinski said on the company’s recent earnings call. “And over the course of this year, those pressures have intensified and expanded. … Industry traffic has declined in key markets such as the U.S., Australia, Canada and Germany.”
