Discount Shopping Surges in Restaurant Industry Amid High Inflation
In response to high inflation and rising menu prices, consumers have been increasingly seeking out restaurant discounts near me. This trend has been particularly pronounced in recent months, with a significant increase in discount shopping in the food near me industry. According to Intouch Insight, over half of the orders made in their study for Restaurant Business earlier this year included some sort of offer. This surge in discount shopping is unprecedented, with the rate increasing by 3.1 percentage points since 2022 and reaching levels not seen since the 2008-2010 downturn. In fact, 29% of commercial foodservice traffic over the past 12 months was on a deal, the highest rate recorded in 50 years. Higher-income consumers, who have more financial cushion, have been driving aggressive marketing campaigns and new menu items. However, even with various promotional efforts, same-store sales for publicly-traded restaurant chains remained largely muted last quarter. This has led some restaurant chains, like McDonald's, to take unusual steps such as offering broad discounts on combo meals to reverse traffic declines. The trend of discount shopping in the restaurant industry is expected to continue as consumers look for ways to save money amidst high inflation and rising menu prices. Restaurant chains will need to find innovative ways to attract and retain customers while managing their own costs.