The Restaurant sector – is it consumer confidence led?

POSTED ON: Sunday 01, 2017

The Restaurant sector – is it consumer confidence led?

POSTED ON: Sunday 01, 2017

The number of restaurant outlets has declined by -0.5% in the last year, and turnover is down -0.8%… so what is changing in the industry to cause this? Analysing consumer behaviour is an incredibly important factor – the no. of consumers eating out for birthdays/special occasions has doubled, which suggests there is a growing demand for people wanting to eat out. However the decreased value of the £GBP and Brexit may have tightened customers’ purse-strings, as they head into a relatively unknown future, which could explain the aforementioned decline.

The way consumers are eating out is changing… they are planning it more and sticking to “trusted” brands that they know are well priced and do great food. Deciding where to eat out is therefore not as spontaneous and more brand-orientated. Restaurant brands are translating their culture-led message onto consumers – if this is done effectively, restaurant brands will grow as consumer loyalty increases, and so will confidence within the sector. The emergence of Five Guys’ culture of “having fun and being nice” is the perfect example of this, as they are opening a new restaurant almost every 3 days!

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