Just as restaurants have been freed up to make a big push back to pre-pandemic standards, the international conflict in Eastern Europe threatens continued inflation, rising gas prices—and consumer confidence relating to their spending decisions. With prices of necessities on the rise, consumers are stressed about disposable income that could include a reduction in their decisions to dine out. Many consumers are already noting that their experience of restaurant dining does not live up to the increased price.
“Consumers are at a crossroads,” said Lisa Miller, president of Dallas-based Lisa W. Miller & Associates, in a Nation’s Restaurant News article this week. “The pent-up demand is high to dine out, yet experience doesn’t justify the price. It’s not ‘worth it.’ If you have to raise the price, you have to up the experience. It’s just that simple.”
Miller has spent the last two years studying consumer behavior in light of the pandemic, and though most major cities have significantly lessened restrictions, the lingering reminders are overlapping other world events trickling down into consumers’ everyday practices. The results of Miller’s most recent survey make it clear that consumers have no forgotten the pandemic’s toll on dining out, and price increases related to sanctions and supply chain issues are only aggravating that sentiment:
- 59% of respondents were driving less because of gas prices, agreeing or strongly agreeing with the statement of “I am driving significantly less.”
- 36% were dining out less often than earlier because prices have gone up too much
- 28% were dining out less often now because the experience isn’t that good anymore
Miller’s advice to restaurant owners is two-fold. Yes, make the experience worth it to consumers willing to spend their money at your business. But more importantly, turn focus to your employees. “Our employees make or break the brand,” said Miller.
National Restaurant Consultants CEO Richard Weil agrees. “In most cases, we can now move back to the industry of smiles without face coverings. The added challenge is to remind operators what it was like when you first opened your doors and the emphasis you placed on the overall guest experience. Getting back to the basics of hospitality—that is the key”
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