Vericast’s2024 Restaurant TrendWatch reports about 60% of consumers forego dinner reservations in favor of more affordable options, like fast food and frozen pizzas.
Two-thirds of American consumers blame increased restaurant prices for the shift in meal plans. That’s a 3% increase over the number of consumers who felt similarly in 2023.
Sky-high food costs push Americans away from casual dining experiences and back to the drive-thru and freezer aisle.
Gen Z and millennials bear the brunt of the financial burden. Seventy-one percent choose more budget-friendly meals at home over meals at restaurants. These numbers contrast with the 68% of members of other generations with similar switches.
Consumers increasingly view dinners out at traditional, sit-down eateries as a luxury they can sacrifice. As Americans work to trim frivolous spending amid inflation and higher costs across the board, buyers note the disproportionate rise in costs associated with dinner dates and happy hours. Restaurant prices grew 5.1%, compared to the 1.2% increase associated with groceries.
Deals Drive Dinner Plans
Americans are feeling inflation-related fatigue as they work to balance costs associated with social gatherings, entertainment, and family meals without continued sacrifices. When buyers make dinner plans, they seek deals and discounts to soften the blow to budgets.
Over half of respondents report that coupons, discounts, deals, or other offers factor into dinner plan decision-making. Around 30% of consumers expressed an unwillingness to try new restaurants without some sort of discount or special deal. American consumers lean on social media, apps associated with restaurants, and old fashioned coupons in print ads to reduce spending.
Modern Couponing Methods
Social media and apps incentivize Americans to make changes to food-related spending. Consumers cite recipe accessibility on platforms like TikTok as motivators in their decisions to spend less at restaurants. About 39% of respondents were inspired by cooking videos, and 29% admit they’ve tried their hand at copycat recipes seen on social media.
About one-quarter of Americans claim they have used a restaurant app in the last month, primarily as a means to acquire in-app discounts. Restaurant apps often feature special in-app promotions or “online only” deals wherein customers must order using the app or website to claim coupons.
More than half say a coupon or discount entices them to try a restaurant, order more or upgrade their order. 49% say deals help them choose between restaurants.
Also, mailed flyers are still a valid marketing tool. 42% order from restaurants more often if they have a print coupon.
Cooking Over Convenience
Copycat recipes have long been a staple among casual home cooks. These recipes often aim to replicate famous chain restaurant dishes, like Panda Express’s beef and broccoli. These recipes promote accessibility among those who opt to stay home. These recipes allow room for the customizability of classic family favorites, like allergen avoidance and shifts in spice levels.
As Americans increasingly choose cooking over the convenience of dining out, online recipe outlets have noted changes in traffic. March 2024 Statista data shows recipe websites had more traffic than food-ordering services like Doordash and Domino’s online ordering portal.
With the popularity of online recipe platforms, consumers can get close to their favorite dishes at a fraction of the cost. Americans can attempt chicken fried rice without a wok or teppanyaki using online recipes, learning and utilizing appropriate techniques by viewing informative short-form TikToks or Instagram videos.
Though cooking at home brings its own set of challenges — procuring special ingredients, food preparation errors, cleanup, dishes, and time investment — American families still prefer to prepare meals at home. With concerns over restaurant affordability, consumers increasingly classify dining out as an unnecessary “extra” expense or splurge, akin to similarly rising entertainment costs.
Consumer Spending Trends
Money-crunching American families find financial relief in the popularity of recipe platforms and video apps amid soaring food costs. As American consumers turn down budget-busting Sunday brunches in favor of home-cooked meals, experts ponder consumer spending habits.
Dana Baggett, executive director of Vericast ‘s restaurant division, explains, “The steadily increasing cost of dining out is testing the limits of what consumers can and will spend. There’s a noticeable decrease in consumers dining out, especially with consumers that have a household income under $75,000.
“As consumers are intentionally spending less at restaurants, acquiring new guests should be a key area of focus for restaurant brands.”