In many respects, the U.S. economy is exceeding expectations, with rapid job creation, record highs in the stock market, and declining inflation. Typically, these trends would be cause for celebration. However, the legacy of high inflation from 2022 and 2023 continues to affect consumers every time they visit a supermarket.

Likewise, foodservice operators have raised menu prices in response to increased food and labor costs. Year-over-year menu price increases have slowed but remain substantial: a 5% increase in limited-service restaurants and a 3% increase in full-service restaurants compared to March 2023.² Just as in grocery stores, diners are highly aware of the difference compared to a few years ago.

The Impact of Inflation on Consumer Behavior

In 2024, 68% of U.S. consumers express concern about inflation and the rising cost of living. This economic anxiety directly affects their dining habits, with 53% of consumers cutting back on restaurant meals.³ As restaurateurs, understanding this shift is vital for adapting menu pricing and marketing strategies.

Faced with financial constraints, consumers are modifying their dining behaviors. Nearly one in three opt for cheaper menu options, and 31% choose more affordable venues, such as switching from casual dining to quick-service restaurants (QSRs).³ This trend highlights the need for diversified menu options to cater to budget-conscious diners.