Despite Tough Economy, Some Diners Willing To Spend More For Premium Ingredients
According to The Consumer Pricing Strategy Report, consumers are spending less money on dining out, although many are still willing to spend more on “higher quality” menu items, including premium meat.
This report looks across income segments and restaurant segments at consumers’ attitudes toward menu price increases. Among the principal findings:
- 61% of consumers would still spend more for a higher quality sandwich if it contained premium meat; 41% would do so if it were made with premium cheese, and 34% would do so if it contained premium bread.
- 25% of consumers believe restaurants are increasing prices because they want to make more money, while 75% attribute rising prices to the cost of gas and ingredients.
- 91% of consumers are dining out less frequently, 32% are purchasing less expensive food when eating out, and 19% are ordering smaller portions.
- Consumers are cutting back more at full-service than limited-service restaurants, although lower income consumers are cutting back at both.
- 56% of consumers would prefer restaurants to increase prices slowly over time, rather than raising prices all at once.