A New Restaurant

It seems the rising prices are having a real effect on restaurants.  The NPD Group, a marketing research firm, is reporting that their recent nationwide study showed two fewer visits per person per year to restaurants.  The study cited rising gas prices as among the reason for the consumer spending cutbacks.

Two visits per person may not seem like a lot, but when you look at the cumulative effect of the U. S. population, it is significant.  That’s over 600 million customers per year.

This spring, restaurant traffic increased just 0.6%, compared to a 1.3% increase last year.  The most unfortunate part is that the increases came mainly during breakfast and late-night snack periods, and not during the more profitable lunch and dinner periods.

One of the major ways you can continue to compete, and increase your traffic is by giving your customers what they want.  When asked for the reasons they were deciding to stay at home for their meals, the top three things the customers listed were cheaper food, more healthful options, and better quality food.  Gas prices were fourth on the list.

While there’s not much you can do about gas prices, you can address the top three things on the list.

Good meals made with quality ingredients, at a reasonable price will always attract customers.  If you aren’t offering healthier selections on your menu, you better start, because I can almost guarantee your competition is.  If given a choice of where the customers will decide to go, they will always choose the restaurant that gives them more of what they want, and can afford.  Do what you can to make sure that is you.