Based on surveys conducted for PYMNTS' "Connected Dining" series, the data for June reveals that merely 7.4% of restaurant customers engaged in restaurant-related transactions three times a week or more. This figure reflects a noticeable decline from the previous month's 9.3%, and a more significant drop from the end of the previous year when it stood at 10.2%.
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GLOAs the cost of dining at restaurants continues to climb, PYMNTS research indicates that even the most enthusiastic eaters are showing restraint when it comes to dining out or ordering food for delivery.
Data Insights
Based on surveys conducted for PYMNTS’ “Connected Dining” series, the data for June reveals that merely 7.4% of restaurant customers engaged in restaurant-related transactions three times a week or more. This figure reflects a noticeable decline from the previous month’s 9.3%, and a more significant drop from the end of the previous year when it stood at 10.2%.
Moreover, the overall frequency of visits to restaurants experienced a decline, falling to 58% from 67.4% in May, and a more substantial decrease from the 67% recorded in December of the prior year.
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These reductions in dining frequency are occurring simultaneously with an upward trend in restaurant prices, despite a slowdown in the inflation of groceries. Insights derived from the Consumer Price Index (CPI) data provided by the U.S. Bureau of Labor Statistics (BLS) indicate that restaurant inflation on a year-over-year basis stood at 7.1% as of July. This rate is nearly double the inflation rate for groceries, which was recorded at 3.6%. Furthermore, the prices of dining out have exhibited a gradual increase each month throughout the current year.
The Data in Context
Within this context of reduced dining frequency, restaurants are facing the challenge of elevating their efforts to secure customer loyalty.
For instance, during June, Denny’s, a global full-service diner chain with a presence across nearly 1,600 locations, unveiled an updated rewards program. This program utilizes a challenges-based framework designed to encourage specific behaviors based on insights derived from consumers’ purchasing histories.
John Dillon, the President of Denny’s, highlighted the value proposition of the new approach, stating, “Denny’s provides an incredible bang for your buck, and now our rewards challenges take value to a whole new level. At a time when guests place a premium on value, we are excited about this game-changing summer launch.”
Furthermore, Yum Brands, a major player in the quick-service restaurant (QSR) sector and the parent company of renowned brands like KFC, Taco Bell, Pizza Hut, and the Habit Burger Grill, disclosed in July its partnership with the analytics platform Treasure Data. This strategic collaboration aims to enhance personalization, enabling the company to refine the targeting of its brand-specific loyalty programs, among other initiatives.
Cameron Davies, Chief Data Officer at Yum Brands, elaborated on this initiative, stating, “This is the latest advancement in our strategy to drive toward enhanced digital experiences and deliver exceptional value to our customers, as the Company remains focused on our vision to have 100% of sales powered by digital. Treasure Data’s state-of-the-art [Customer Data Platform] … will enhance both our understanding and engagement with Yum!’s customers, ultimately driving more personalized and unique interactions.”
Source: PYMNTS
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