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US Restaurant Traffic Increases But Consumers Spend Less

Source: FLEXNEWS
18/01/2010

18 January 2010 - According to analysis by AlixPartners, it is expected that US consumers are going to dine out more often in 2010. However, in general it is anticipated that people will spend 20% less money than they are at the moment.

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2009 was a year marked by gradual recovery in restaurant attendance. In the last quarter 63% of people sampled dined out at least weekly over the last twelve months, 11% more than in Q1, according to an AlixPartners' survey. However, the expected average spend in the next 12 months is projected to drop 3% as consumers shift more to meals under $5.

Along with food safety, value and promotion are still important factors for the consumer when it comes to choosing restaurants, said AlixPartners.

According to the advisory firm, 2009 has really been characterised by discounting. In 2010, though, product innovation will lead the year as there is promotion fatigue out there. For the companies, 2010 will also be about putting their growth strategies back in place.

In addition, AlixPartners argues that, given the certain overcapacity in the US restaurant industry, it is expected that further consolidation could take place in the next 12-24 months.



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