Restaurants may be doing everything in their power to price below the rate of food inflation, and even below the rate of inflation overall, but consumers are nevertheless noting significant increases in the costs of their favorite meals.
By the Numbers
Research from PYMNTS’ September study “New Reality Check: The Paycheck-To-Paycheck Report: The Inflation Edition,” which was created in collaboration with LendingClub and drew from an August census-balanced survey of nearly 3,500 U.S. consumers, found that 51% of consumers noted “very or extremely considerable” increases in the price of food from restaurants in the previous 12 months.
Plus, an additional 31% noted “somewhat considerable” increases.
See also: New Study: 60% of US Consumers Have Cut Spending Due to Inflation
The Data in Context
These findings come in spite of restaurants’ efforts to absorb price increases. Findings from the Labor Department’s most recent Consumer Price Index for All Urban Consumers (CPI-U) revealed that grocery prices rose 13.5% year over year. By contrast, restaurant prices rose only 8%, below even the 8.3% increase for all items.
Related: CPI Shows Restaurants Underpricing to Slow Shift to Grocery
Indeed, consumers feel the impacts of restaurant inflation more than these findings would reveal. A national online study of 3,783 U.S. adults conducted by PYMNTS in July revealed that, despite the measured approximate 7% to 13% food price increases at the time, consumers reported paying 20% to 30% more for retail and grocery purchases and to eat at restaurants.
Read more: Why Retailers Should Worry About Inflation but Dread the Wealth Effect
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