CHICAGO—A new NPD Group report predicts that while the economy is rebounding, persistent high unemployment will continue to plague the restaurant industry several months; however, restaurants have heeded the call of these cost-conscious consumers by being aggressive in offering discounts, giveaways, and other incentives.
“The majority of the industry’s challenges are related to unemployment, which isn’t expected to improve quickly,” said Bonnie Riggs, NPD restaurant industry analyst and author of the “What to Expect When Economic Recovery Begins” report. “If you’re unemployed, you’re not going to be picking up a quick breakfast on the way to work or eating out at lunch. Dining out, overall, is a luxury you can’t afford.”
Affordability is top-of-mind with most consumers, employed or unemployed. When NPD asked consumers, who claimed that they have cut back on restaurant visits, what would entice them to visit restaurants more often, they listed discounts, something free, more dollar menu items, choice of price offerings, and other cost management options were their top responses.
