Commentary

Report: Consumers To Cut Back On Limited-Service Dining

There’s a great deal of focus in the media on the lower and middle classes and how they see their future, and not just politically. For a view into eating habits, the “Cooking Up Success” report, released this week by consumer insight and data provider Numerator, surveyed more than 2,000 customers of LSR (low service restaurants, comprising both QSR and fast-casual categories)  across all income levels.

While all consumer groups increased their LSR spend year over year, the report found that 29% of middle-income consumers are most likely to say they’ll cut back on LSR spending in the coming months, with 57% planning on spending the same and 14% intending to spend more. Twenty-seven percent of low-income customers plan to decease spending, while nearly the same number -- 24% -- of high-income guests plan to do the same.

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The reasons cited by middle-income consumers for eating at a LSR included an overwhelming 71% for convenience, 49% to save time, 40% to treat themselves, and 20% due to LSRs being less expensive than a sit-down restaurant.

The report also found two out of five consumers at every income level consider food delivery services such as Grubhub or Uber Eats “too expensive for their household.” Forty-five percent of middle-income households felt this way, with 23% saying, “I only use them when I have promotions or offers sent to me.”  A mere 8% say they "prefer to have my fast food delivered to me instead of going to the restaurant.” And only 11% said delivery services “have made it more convenient for me to eat at fast food restaurants more often.”

The high price of groceries isn’t lost on LSR consumers: 38% of overall LSR guests think some restaurants are more or as affordable as groceries, while 18% of middle-income customers feel both McDonald’s and Taco Bell meals are actually more affordable than shopping and cooking at home. Burger King and Domino’s were also cited by 14% of middle income customers as costing less than groceries. Taco Bell actually topped all income levels as more affordable than groceries at 17%.

On the other end of the spectrum, Starbucks tops the list as  “less affordable than groceries” for all income levels, at 49%. Also considered more expensive than groceries for middle-income consumers are Subway (47%), Chick-fil-A (43%) and McDonald’s (at 38%).

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