Consumers are of two different mindsets when it comes to spending ─ those that cannot spend freely and those that can ─ and the dichotomy between these two mindsets will shape the restaurant industry now and into the future, according to new foodservice market research by The NPD Group.
The recently released report titled, "The Changing Consumer Mindset: What it Means to the Restaurant Industry," shows the effects the recession had on consumer behavior and thinking, and the difference between consumers who are more cautious and control their spending, and those who are optimistic and feel economically stable.
Three-fourths (76 percent) of the consumers surveyed for the study fall into the cautious, controlled spender group, which includes adults in all demographic groups, but skew toward the unemployed, less affluent and retirees.
These consumers are still reducing restaurant visits, trading down and ordering fewer items. While they anticipate they'll be less restrictive with their restaurant visits when the economy recovers, they do not expect the economy to recover any time soon.
A smaller group of respondents (24 percent) appear relatively unaffected by the recession. They are optimistic in general and have been less inclined to moderate their restaurant behavior, although this group did trade down in segment visits since 2007. They cross all demographic groups but are more likely to be employed and live in affluent households.
“There is considerable disparity between the views of optimists and controlled spenders regarding enticement to visit restaurants more often,” said Bonnie Riggs, NPD restaurant industry analyst and author of the report. “Optimists place much more importance on service and a relaxing atmosphere than controlled spenders, who are more concerned with price and value.”
