May 22, 2013: Restaurant Spending Rises

Several years ago I first told you about “frugality fatigue” and how many Americans were starting to spend despite continuing tight economic conditions. Today, frugality fatigue is spreading. According to an article in USA Today, “an increasing number of Americans say they are less frugal than they were a few years ago.” And apparently one of the places they’re spending money is restaurants. In fact, restaurant revenues are, says USA Today, “at an all-time high (hitting $45.9 billion in April) and at least one survey says consumers expect to spend more eating out as soon as their pocketbooks allow.”

The previous high was set in December, and then sales slowed from January through March. Bruce Grindy, the chief economist of the National Restaurant Association, thinks the temporary decline was “likely due in part to the impact of the payroll tax hike.”

The NRA also released a survey showing that even more consumers wanted to eat out more often. Nearly half of the adults (49 percent) and 54 percent of the women surveyed said they wanted to dine out more than they were. Grindy believes this means that “once consumers are feeling more confident about their personal financial situation” they’ll head to restaurants.

Gallup, which conducted the frugality survey, reports 26 percent of Americans are spending more today, and only 41 percent claim to be spending less, compared to 57 percent who said they were not spending in 2010.

If you’re trying to target the new “big” spenders, you might want to market to Millennials (Gen Y) one-third of whom tell Gallup they’re spending more money than they previously spent.

Part 1 of a two-part Trendcast on Food Trends.


Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload the CAPTCHA.

Marketing Horror Story »

Tips and Tricks to Avoid a Halloween Marketing Horror Story
Read More…

Listen to Rieva Now! »

Small Business Ideas

Get Small Business Ideas From Rieva

turning passion into profit »

turning passion into profit

Download your free ebook here!

Get Updates »

Enter your email to subscribe to our RSS.

Free Download »

Free Download

Startup ideas for businesses to start now! Download here

Congrats Rieva Lesonsky! Named to Top 250 Business Journalists

Small Biz Money Tip »

Small Biz Money Tip

Pricing: Have more than one price for your product or service. Make one price seem more attractive than the other. People love a good deal, especially when they can relate one price to the other.
More Money Tips From Justin Krane

Loan Center »

New Loan Center

Find a Small Business Loan