On the positive side of “Food Blues,” we could be talking about the freshest crop of blueberries. (Yes, they are beautiful). Instead, we are looking at the latest reports that indicate consumers are not yet believing they are out of the woods on their finances. They exercise caution in their grocery shopping and their restaurant expenses.
Meal planning, according to the NPD Group study, will remain on the thrifty side. Consumers have learned how to make better meals with less and are not ready to jump from the calm ship and break out the foie gras. The study reports that consumers do not see their situation improving over the next 12 months and plan to continue strategies they employed during the earliest days of the Recession. This information is almost in direct contrast to several economic market indicators pointing in a more positive, upward trajectory.
Examples of thriftier behavior from the report include decreasing spending on groceries, using coupons for food and beverage items, and stocking up on foods when they are on sale. The list also includes shopping for less expensive brands and making use of online coupons.
These are all consumer behavioral strategies that grocers can address to make shopping a better, more positive experience. Matching coupons, doubling or tripling those from circulars, and offering good, solid sale prices on a large variety of products will keep customers loyal returnees. It sounds as if little has changed for the consumer no matter how hopeful everyone wants to remain.
Restaurants have a lot to learn from this report and from the Nielsen Company’s latest research. Some of these findings could spell doom for a number of restaurants that have been hanging on and waiting for customers to increase their dining out events and cash outlays. After surveying 7,500 alcohol beverage consumers, they found almost 60% reducing their trips to casual restaurants and a similar number reported they were going less frequently to more expensive restaurants (fine-dining). An additional find was that 47% said they frequent bars and clubs less often. This translates into changed behavior patterns across the age demographics. The report underlies the belief that consumers learned new ways of entertaining and continue to exhibit uncertainty about the extent of the recovery.
Another interesting tell-all concerns alcoholic beverage purchases. More than 75% of those interviewed said they have not changed their beverage purchases because of price, but 25% of those say they are making fewer purchases. So even in this category, consumers have adjusted their behavior, and they are more conscious of their decisions.
Yes, these reports do NOT put a smile on the face of anyone in the food and beverage universe. They give great pause and increase the likelihood of more promotions rather than assuming that the diner of yore, as in 2-3 years ago, is lining up to get in the door.
Free-wheeling dining and shopping has not returned, and it appears to be stuck in fear. Hopefully, someone is listening.
Yes, I know it’s still April, but the panic surrounding what to do about Mother’s Day (Sunday, May 9) has already set in. Restaurants are quite pleased with the renewed interest in dining out. According to the 
Every time we see little glimmers of strength in the economy, we are bombarded with a piece of information that makes us question if the news holds true for the restaurant industry. With so many restaurants tweaking their menus and adding small plates for guests to share and help diners reduce the cash outlay, something still is amiss. The same goes for wines as so many restaurants have half-priced wine bottle nights and more restaurants are doing mini pours to encourage wine purchases rather than have guests skip the beverage all together. All these food and beverage promotions are in place for a reason: A financial one.
