consumers are reconsidering their restaurant spending | PYMNTS.com

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As food prices rise rapidly, consumers are rethinking their restaurant spending.

In numbers

Research from the new PYMNTS study, “Consumer Inflation Sentiment: July 2022 – Consumers are retreating and preparing for the long termwhich is based on a survey conducted earlier this month of more than 3,700 consumers, found that 87% had made at least one change in their dining habits due to rising prices.

Related News: New study finds 70% of U.S. consumers are cutting back on non-essential retail purchases

Data in Action

Large restaurant chains are seeing some consumers, especially low-income customers, change the way they order. On a call with analysts Tuesday, July 26 to discuss McDonald’s second quarter of fiscal 2022financial resultspresident and CEO of the companyChris Kempczinskiaddressed this trend.

“We are seeing a decline in trade,” Kempczinski said. “We’re seeing customers, and especially low-income customers, opting for value deals and fewer combo meals.”

However, he later argued that the effects of this change are somewhat mitigated by commercial declines from higher-income consumers over more expensive dining options.

Read more: As restaurant prices rise, fast-food chains see low-income consumers pinching pennies

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