CHICAGO -- Consumer perception of price increases in full-service restaurants could be a boon to the quick-service restaurant (QSR) segment, assuming customers opt for fast food over the more expensive, full-service counterpart.
In a recent national survey by Chicago-based foodservice consultants Technomic Inc., more than half of consumers polled said that they have noticed higher menu prices at full-service restaurants. Also, consumers have exaggerated notions of how much prices have, in fact, increased at national chains.
The national poll, which monitors consumer price sensitivity [image-nocss] in both the limited-service and full-service segments,asked consumers about their full-service restaurant menu price observations and about their expectations, as well as about their forecasted change in restaurant spending.The surveyalso monitors various menu categories and for menu items with costly ingredients. And it gauges menu price elasticity for various dayparts, for average check amounts and for various dining occasions.The findings from the Technomic survey also included the following: The majority of consumers expect menu prices will increase more than 10% during the next 3 to 6 months. Most consumers (65%) believe the highest menu price increases will be in large, national chains and among high-check-average concepts. Consumer perceptions of average check, by brand, are 10 to 15% higher than actual average check amounts, by brand. Consumers believe they are spending more than they actually are. Over half of consumers (59%) expect to reduce their full-service restaurant visit frequency as prices continue to rise. Tom Miner, principal at Technomic, said, "while consumers often state one belief then act in a reverse manner, we believe that well over half of full-service consumers are looking for ways to reduce restaurant spending—and that many of them will succeed."
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