In the wake of economic turmoil, a single meal out has become a luxury for many. With inflation soaring to heights unseen in decades, the hospitality industry is navigating a tempest of rising costs and changing consumer behaviours. This article delves into the transformative impact of these financial challenges, illustrating not just the shifts in consumer choices, but also the unwavering cultural significance of dining out.
#1 Reduced Frequency of Dining Out
The current financial strain means many are choosing to dine out less frequently. According to a joint survey by Bidfood and CGA, around half of UK consumers mention they are now spending less on eating out than the previous year, a significant shift from past behaviours. (i)
#2 Price-Conscious Venue Selection
As purse strings tighten, consumers are becoming increasingly price-driven when selecting dining venues. This behavioural shift from the previous year underscores the growing financial consciousness amongst diners. For businesses, this translates to a need to emphasise value for money more than ever. (ii)(iii)
#3 Shift Towards Value-for-Money Options
In this age of economic challenges, while consumers are certainly seeking value-for-money when dining out, it's not just about the price tag. There's an evident desire for a richer dining experience, one that goes beyond just a meal. Restaurateurs are picking up on this trend and weaving in unique elements to elevate the dining ambiance.
For instance, innovations like BellaBot, equipped with a nuanced AI voice and diverse expressions, are becoming a subtle yet significant part of the restaurant ecosystem. Diners not only appreciate its efficiency but also the entertainment it brings, be it through casual interactions or special moments like birthday celebrations. In essence, establishments that combine with such immersive experiences are resonating more with today's discerning customer.
#4 The Integral Role of Dining Out
Despite the cost of living crisis and its evident impacts, dining out remains an ingrained habit for many. A significant portion of consumers, 45%, view eating out as a "fundamental activity" in their lives, while a whopping 64% admit they'd find it challenging to forgo eating and drinking out despite the crisis. Furthermore, 7 in 10 individuals regard dining out as the treat they most anticipate, reiterating the embedded cultural importance of the act. (iv)(v)
#5 Unwavering Importance of Social Dining
The act of dining out transcends mere consumption. Whether driven by a love for food, an eagerness to socialise, or mere convenience, eating out remains a cornerstone of many social lives. This sentiment becomes especially relevant when observing that, despite the financial pressures, consumers continue to value their dining experiences.
Conclusion
While the rising costs in the hospitality industry undeniably shape consumer behaviour, it's heartening to see the enduring importance of dining out in people's lives. As the industry charts its path through 2024, understanding these shifts and persisting sentiments will be crucial for businesses to adapt, innovate, and stay connected with their diners.
How has the cost of living crisis affected your dining out habits?
I dine out less often
I dine out just as frequently as before
I'm more selective about where I dine
I prioritise value-for-money experiences
You can vote for more than one answer.
Sources:
(i) Bidfood and CGA 2023 Trends consumer survey, sample size 2,003 (UK adults)
(ii) CGA Proprietary Data, sample size 2,003 (UK adults)
(iii) Lumina Intelligence Eating Out Market Report June 2022
(iv) CGA BrandTrack, April 2022, sample size 5,022
(v) CGA by NielsenIQ Cost of Living Consumer Pulse (1,000 GB&I consumers) August 2022