Iryna Bychkiv
Wealth of Geeks
Wealth of Geeks
According to a 2024 Popmenu study, families spend 10% less of their food budget on restaurants than they did in 2022.
A year before the Popmenu study, a National Frozen & Refrigerated Foods Association survey found that four out of five people eat at home for more than half their meals. During the pandemic lockdowns, home cooks experimented in the kitchen, ultimately finding camaraderie with TikTok influencers and social media food gurus.
Inflation isn’t helping matters. People may love to dine out, but doing so is less likely when the cost of essentials drains any excess spending money they might have previously enjoyed.
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Reasons why eating out is expensive
The cost of a dozen eggs skyrocketed by the end of 2022 compared to right before the pandemic. Before the United States lockdowns, the average price was near $1.50 in 2019. Within two years, it shot up to $4.25. That cost was passed on to consumers and restauranteurs, many of whom were already paying increased rent and utilities.
It was all but inevitable, after being closed and losing revenue for so long, that increased food costs would trickle down to consumers.
Another trend exacerbated by the lockdowns was the rise of “tipflation.” Strapped for funds, workers sought higher gratuities for what often amounted to the same quality of service. Some establishments that had never been concerned with tipping in the past suddenly started posting it as an expectation — even if it wasn’t passed on to their employees. Companies like Square receive a cut from each credit card transaction, including the tip. In a CouponBirds survey, 65% of consumers state they feel guilted into tipping as a result of its prevalence on electronic screens.
Those adamant about dining out continue to do so. But the Popmenu survey also found the reduction in spending almost entirely comes from tipping less. Nearly two in five diners admitted to spending the same or more on their meals but not tipping as much.
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Why people still eat out
People still choose to dine at restaurants or order delivery. According to U.S. Foods 2023 The Diner Dispatch survey, the average person eats out three times a month or orders delivery more than four times.
The U.S. Foods survey delves into motivating factors behind dining out or staying in, and at least one factor appeals to both types of consumers. Approximately 75% of respondents who still dine out state they do so because it’s convenient. This aligns with 75% of households that still order in for the convenience of having their meal brought to them.
Motivating factors did extend beyond convenience for both dining out and ordering delivery. Socialization plays a significant role for 44% of diners, though more than half of Americans would prefer to get takeout than eat inside a restaurant. For those individuals, being able to watch movies or their favorite TV shows while eating is a primary motivator.
—————
What people want from eating out
As consumers become more concerned about the cost of a meal, they’re motivated to find eateries that offer the best value. A meal doesn’t have to be cheap, as long as the portions are large or the menu is brimming with meal deals.
Brendan Sweeney, CEO and co-founder of Popmenu notes that diners spend more time researching menus before deciding where to eat. They consider the available dishes, cost, and discounts. Sweeney further explains that the restaurants making a profit are those that drift into budget-friendly territory or offer an engaging online experience with clear digital menus and online ordering.
More than half (52%) of those surveyed say they prioritize restaurants that offer bigger portions so they have leftovers for another meal. The need to stretch every part of a meal is nothing new. However, shrinkflation, when you get less of a product for the same or higher price, hurts consumers and restaurants alike. As many as 46% of people across 33 countries notice active shrinkflation in grocery stores and restaurants.
Aside from larger serving sizes, consumers also want a reward for brand loyalty. A loyalty program incentive drums up potential long-term clientele. People get a deal, and businesses have a more secure income stream.
Popmenu found nearly half of restaurants are smart enough to offer a loyalty program.
—————
Tips for saving money when eating out
Larger portions help make every dollar count. However, there are other ways for consumers to save if they still want to eat out. Ordering delivery is more expensive than picking it up. Using third-party apps often incurs more fees for customers and restaurants.
Save money by picking up the food yourself. And whenever possible, avoid using third party services. 67% of consumers prefer to order directly from a restaurant’s website versus a third party like Postmates, Seamless, UberEats, Grub Hub, or DoorDash.
Signing up for loyalty rewards programs also saves consumers cash. The more they spend, the more they save in the long term. Some businesses use coupons in apps and online mailers. Look out for these to save an extra bit, too. For restaurants without deals, consider sharing meals to experience more of the menu for less.
Affordable dining doesn’t have to compromise the experience. Planning ahead allows people to be mindful of spending when dining out so they can still enjoy restaurant meals without breaking the bank.
A year before the Popmenu study, a National Frozen & Refrigerated Foods Association survey found that four out of five people eat at home for more than half their meals. During the pandemic lockdowns, home cooks experimented in the kitchen, ultimately finding camaraderie with TikTok influencers and social media food gurus.
Inflation isn’t helping matters. People may love to dine out, but doing so is less likely when the cost of essentials drains any excess spending money they might have previously enjoyed.
—————
Reasons why eating out is expensive
The cost of a dozen eggs skyrocketed by the end of 2022 compared to right before the pandemic. Before the United States lockdowns, the average price was near $1.50 in 2019. Within two years, it shot up to $4.25. That cost was passed on to consumers and restauranteurs, many of whom were already paying increased rent and utilities.
It was all but inevitable, after being closed and losing revenue for so long, that increased food costs would trickle down to consumers.
Another trend exacerbated by the lockdowns was the rise of “tipflation.” Strapped for funds, workers sought higher gratuities for what often amounted to the same quality of service. Some establishments that had never been concerned with tipping in the past suddenly started posting it as an expectation — even if it wasn’t passed on to their employees. Companies like Square receive a cut from each credit card transaction, including the tip. In a CouponBirds survey, 65% of consumers state they feel guilted into tipping as a result of its prevalence on electronic screens.
Those adamant about dining out continue to do so. But the Popmenu survey also found the reduction in spending almost entirely comes from tipping less. Nearly two in five diners admitted to spending the same or more on their meals but not tipping as much.
—————
Why people still eat out
People still choose to dine at restaurants or order delivery. According to U.S. Foods 2023 The Diner Dispatch survey, the average person eats out three times a month or orders delivery more than four times.
The U.S. Foods survey delves into motivating factors behind dining out or staying in, and at least one factor appeals to both types of consumers. Approximately 75% of respondents who still dine out state they do so because it’s convenient. This aligns with 75% of households that still order in for the convenience of having their meal brought to them.
Motivating factors did extend beyond convenience for both dining out and ordering delivery. Socialization plays a significant role for 44% of diners, though more than half of Americans would prefer to get takeout than eat inside a restaurant. For those individuals, being able to watch movies or their favorite TV shows while eating is a primary motivator.
—————
What people want from eating out
As consumers become more concerned about the cost of a meal, they’re motivated to find eateries that offer the best value. A meal doesn’t have to be cheap, as long as the portions are large or the menu is brimming with meal deals.
Brendan Sweeney, CEO and co-founder of Popmenu notes that diners spend more time researching menus before deciding where to eat. They consider the available dishes, cost, and discounts. Sweeney further explains that the restaurants making a profit are those that drift into budget-friendly territory or offer an engaging online experience with clear digital menus and online ordering.
More than half (52%) of those surveyed say they prioritize restaurants that offer bigger portions so they have leftovers for another meal. The need to stretch every part of a meal is nothing new. However, shrinkflation, when you get less of a product for the same or higher price, hurts consumers and restaurants alike. As many as 46% of people across 33 countries notice active shrinkflation in grocery stores and restaurants.
Aside from larger serving sizes, consumers also want a reward for brand loyalty. A loyalty program incentive drums up potential long-term clientele. People get a deal, and businesses have a more secure income stream.
Popmenu found nearly half of restaurants are smart enough to offer a loyalty program.
—————
Tips for saving money when eating out
Larger portions help make every dollar count. However, there are other ways for consumers to save if they still want to eat out. Ordering delivery is more expensive than picking it up. Using third-party apps often incurs more fees for customers and restaurants.
Save money by picking up the food yourself. And whenever possible, avoid using third party services. 67% of consumers prefer to order directly from a restaurant’s website versus a third party like Postmates, Seamless, UberEats, Grub Hub, or DoorDash.
Signing up for loyalty rewards programs also saves consumers cash. The more they spend, the more they save in the long term. Some businesses use coupons in apps and online mailers. Look out for these to save an extra bit, too. For restaurants without deals, consider sharing meals to experience more of the menu for less.
Affordable dining doesn’t have to compromise the experience. Planning ahead allows people to be mindful of spending when dining out so they can still enjoy restaurant meals without breaking the bank.
