Marketing

Restaurant deal activity jumps in Q1

Adobe Stock.

May 30, 2023

The number of restaurant consumers using a deal jumped a bit in the first quarter of 2023 with an 8% growth spike compared to a year ago, according to data from Circana, formerly known as IRI and The NPD Group.

Restaurant loyalty program points and rewards redemption increased by 26%, according to press release.

Buy some/get some and coupon deals were among the most popular deal types, growing 13% and 18%, respectively, compared to a year ago. Discounted price deals increased by 8%, and daily specials by 6%. Combined item specials declined.

Most deals (84%) were used at QSRs. Visits to QSRs increased by 2% and deal visits by 7% in the quarter over last year.

About a quarter of all restaurant visits use a loyalty reward program, earning and redeeming points. Loyalty rewards and points redeemed at restaurants during the first quarter increased by 26% compared to the same quarter a year ago. Breakfast and morning snack periods are the most popular dayparts for loyalty points and reward redemption.

"Last year, deal traffic was flat as rising costs deterred operators from offering deals, and the deals offered weren't a value from a consumer perspective," David Portalatin, Circana food industry advisor and author of Eating Patterns in America, said in the release. "Although inflation is now moderating, food prices are up 7% from a year ago, and consumers are looking for deals that will offset higher prices. Operators are using deals to drive more traffic."