More and more consumers continue to notice restaurant price increases, and it’s making them more value-conscious than ever—a trend that has steadily increased for nearly three years.1 Restaurant marketing that engages these price-sensitive consumers with compelling offers can continue to drive traffic and acquisition in a challenging environment.
Consumers Are Increasingly Noticing Rising Restaurant Prices
Source: Prosper August 2024
Three Ways Consumers Respond to Price Increases
As consumers feel the pressure of rising prices, they adjust their habits in three primary ways:
- Shopping sales more often
- Doing online research
- Using more coupons
These behaviors have increased steadily since November 2021.1
Changing Consumer Behavior in Response to Rising Prices
Source: Prosper Insights & Analytics, Monthly Survey – November 2021 – August 2024
Restaurants Must Focus on Value to Win Back Customers
Another challenge facing restaurants is reduced grocery inflation, currently -3.0 below restaurant inflation, extending a 17-month trend. Grocery continues to own the gap between eating-out and eating-in, and restaurant consumers who demand value are seeking other options.1
Restaurants can win back consumers who still want to enjoy their favorite restaurants by appealing to their craving for value:
- 68% are paying close attention to prices increases and where they can find the best value, a 2% increase over the previous year and a 4% increase over 2022.2
- 60% compare prices before deciding what to buy, a three-year high. 2
- 52% usually choose restaurants with lower prices, also a three-year high. 2
Restaurant and takeout customers have responded to media across print and digital channels within the past 12 months.3 Restaurant marketing campaigns can remain top of mind and increase traffic and acquisition as diners consider purchases by leveraging a coordinated mix of print and digital advertising tactics.
Integrated Restaurant Campaigns that Convert
Here are three building blocks of an effective restaurant marketing campaign to consider as you plan your strategy:
No. 1: Don’t overlook the mailbox. 35% of diners are influenced by coupons and offers they receive in the mail, a four-point increase over 2023. Having a discount or offer in hand holds a strong appeal for restaurant diners.4
Marketing mail is highly persuasive — Over half (53%) have tried a new product/service/establishment in the past 6 months after receiving marketing mail. Restaurants, at 68%, are the no. 1 new establishment tried in response to marketing mail.5
Not only does marketing mail generate trial of new products or services; mail is also an on-ramp to digital activity. 55% of consumers visited a brand’s website after receiving advertising mail.5
No. 2: Keep a strong digital presence. 28% of customers are now drawn to online discounts and coupons, a 6-point jump from the previous year. Learn more about how targeted digital advertising can increase campaign reach and response to help you achieve your goals to drive traffic and sales.5
No. 3: Make them an offer they can’t refuse. 78% of consumers say they will open/read mail from a brand if it includes a single offer or promotion. 6
Check out our case studies to learn how other restaurants have achieved their goals with Mspark’s solutions. Click “get started” below to connect with a specialist to plan your strategy.
Sources: Prosper August 20241; “The New Value Equation for Restaurants,” nrn.com, May 20242; AdMall 20243; Vericast 2024 Restaurant TrendWatch Report4; USPS Mail Moments 20245; 2024 LOB State of Direct Mail Consumer Insights6
