Macroeconomic headwinds are posing a very real threat to restaurants, with an increasing number of eateries now expecting the worst in their future.
By the Numbers
Research from PYMNTS’ study “Main Street Health Q3 2022: SMBs Battle Inflation,” which drew from a July survey of 533 United States businesses, found that the share of businesses in the food, entertainment and lodging sectors that consider it “less than somewhat likely” that they will continue to operate for the next two years surged from 4.6% to 8.2% between January and July.
The Data in Context
Indeed, consumers are eating at home more. Research from PYMNTS’ study “Consumer Inflation Sentiment: Inflation Slowly Ebbs, but Consumer Outlook Remains Gloomy,” which drew from an August survey of 2,169 consumers, found that 78% expect to eat at home more often to save money, up slightly from the 77% a month earlier.
Read more: New Survey Shows Consumers Less Optimistic Than Fed on Taming Inflation
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Even major restaurant brands with low prices are feeling the impact. Take, for instance, quick-service restaurant (QSR) giant McDonald’s.
“We are seeing some trade down,” President and CEO Chris Kempczinski told analysts on a call in July. “We’re seeing customers, and specifically lower-income customers, trade down to value offerings and fewer combo meals.”
See more: As Restaurant Prices Rise, Fast Food Chains See Lower-Income Consumers Pinching Pennies
