Differentiate prices and promotions: 40 percent (–6 percentage points). Develop own delivery sales: 43 percent (–6 percentage points). Adjust current product composition: 48 percent (–9 percentage points, it appears loyalty programs are being deprioritized just as it becomes a key lever in reducing churn during an upcoming recession, Simon-Kucher said). Enter new channels: 48 percent (1 percentage points). Introduce or refine group meals: 50 percent (–3 percentage points, a COVID staple slides back on the price front). Rationalize menu: 50 percent (7 percentage points). Stimulate demand during new occasions: 52 percent (5 percentage points). Increased menu prices: 53 percent (–2 percentage points, suggesting the ceiling is approaching). Introduce or refine value meals: 57 percent (8 percentage points, a value war is on the horizon). Increase menu innovation: 72 percent (1 percentage points). Technology enhancements: 74 percent (up 7 percent from the last 12 months). 
Price increases will be tolerated less: 4.1Īnd the response from restaurants (percentage of operators who plan to implement pricing and operations actions in the next year).The number of unique guests will decrease: 4.4.How operators think customers are going to respond (scale 1–5): With this, consumer behavior is going to be a moving target with a value center.
Next 12 months: 4.7 (the lone group in the red, year-over-year, at negative 2 percent, showing the value-focused field has reached a price wall of sorts). Price increase percentage magnitude per year Restaurant cost increases over last year:Ĭosts are increasing, but the magnitude slid from 2022 to 2023.Īnd yet, restaurants said they’re planning for more frequent and aggressive price increases in 2023 to address market trends. Interestingly, fast food was the only category that saw an increase in cost percentage this year compared to 2022, strongly driven by raw material costs (25 percent jump in 2022 raw materials make up roughly 34 percent of the category’s cost structure). While cost increases are slowing, surveyed chains said they still plan to increase costs in 2023 by nearly 9 percent. Forty-seven percent said they agreed it was en route, but it wouldn’t hurt restaurants. When asked about a recession, 50 percent felt it was coming and would impact the foodservice sector. #Chick fil a breakfast full#
Simon-Kucher recently conducted a survey about recessionary realities, inflation, and price increases across 50-plus brands, including 12 quick-service and eight fast-casual concepts (the rest were either pizza or full service).īroadly, it found restaurants aren’t entirely sure what to expect from a macroeconomic view. Unboxed, however, quantity per transaction fell 3.7 percent, which indicates diners ordered fewer items to guard their spend. Overall, sales were positive at 3.7 percent over a year ago. The sales equation through this inflationary run has been growth on the top-line via price and multiple revenue channels, not transactions-average check was 5.5 percent higher last month, year-over-year, per RMS, thanks to average price jumping 9.6 percent. In Revenue Management Solutions’ latest data dive, quick-service traffic declined 1.7 percent, year-over-year, which has been a common tale of late (it was down 1.9 percent the prior month).
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