Industry News | October 21, 2008

Economic Crisis Hits Restaurants

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In a recently-completed survey of consumers, Chicago-based foodservice consultants Technomic, Inc. found that the financial market meltdown is likely to cause a high number (74 percent) of consumers to visit both quick- and full-service restaurants less often. Technomic also found that over 50 percent of consumers – and over 70 percent of higher-income consumers – plan to spend less when they do visit either type of restaurant.

“Our research indicates that consumers are deeply concerned about the loss in value of their home equity, stock portfolio, and retirement investments and their credit card debt. As a result, they indicate clear intentions to reduce spending in a variety of ways,” says Bob Goldin, Technomic Executive Vice President. “Restaurants will most certainly feel the effects of the pull-back.”

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