Restaurants are closing out the year strong, as spending reached a new high compared to grocery shopping. Restaurants earned a 56.4% market share in October with groceries and supermarkets making up the rest, according to the most recent data released by the U.S. Census Bureau.1
This is good news as we look ahead to the restaurant landscape in 2025. How can restaurants continue to increase market share? It’s a familiar theme: draw in customers by focusing on value.
The key influences on restaurant sales in 2024 remain consistent into the new year:
- Consumers continue their struggle to balance their budget and seek value when dining out.
- Consumer discretionary spending is down as ritual household purchases continue to see higher prices.
Even After Inflation Decline, Prices Strain Consumers
Source: Bureau of Labor Statistics, October 2024 CPI Report, November 2024 Release.
- Full-Service restaurants have gained traffic over QSR as consumers seek more value for the price paid.
Consumers take a number of actions in response to rising prices:
- Look for Sales and greater price-value everywhere
- Do their homework in advance using Online Research
- Use More Coupons to off-set inflation
- Buy more store brands and generic products
These actions have not changed over the past three years, but the number of consumers taking these actions has increased steadily.2
Restaurant marketing campaigns that emphasize value will be the key to increasing restaurant traffic and sales in 2025.
Did you know?
In rural markets, price is the number-one factor in consumers deciding to switch restaurants—followed by location, quality of food, and menu selection. 2
A coordinated, multi-channel advertising strategy that emphasizes value for their money is key to elevate brand awareness and engage consumers as they make dining out purchase decisions.
4 Reasons Multi-Channel Restaurant Marketing Campaigns Drive Results
No. 1: Restaurant customers respond to mail. 35% of diners are influenced by coupons and offers they receive in the mail, a four-point increase over 2023.3
No. 2: Consumers try new restaurants in response to mail. 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.4
No. 3: Consumers value digital coupons & discounts. 28% of customers are now drawn to online discounts and coupons, a 6-point jump from the previous year.4 Restaurant customers are 17% more likely to find coupons and discount codes on an internet-connected device.5
No. 4: Consumers appreciate email. More than half (53%) of consumers surveyed value receiving advertising via email.4
Learn more about marketing solutions for restaurants here. Read our case study to learn how a restaurant tested multi-channel advertising and saw increased results for printed mail + digital compared to print campaigns alone. Click “get started” below to connect with an expert to plan your restaurant marketing strategy for 2025.
Sources: Restaurant spending reaches new high compared to grocery shopping, supermarketnews.com, November 20241; Prosper November 20242; Vericast 2024 Restaurant TrendWatch Report3; USPS Mail Moments 20244; AdMall 20245