Forty-two percent of consumers have indicated that they will cut back on non-essential spending, marking more challenges for the foodservice industry, according to a First Insight report.
“The effects of the pandemic are still driving consumers’ spending priorities today,” said Greg Petro, CEO of First Insight, in a statement. “With pandemic restaurant closures followed by limited reopenings because of the Great Resignation, dining out has become much less of a habit for many consumers today. At the same time, millions of pets were adopted during the pandemic and consumers have decided that the happiness of their pets is far more important to them than eating out. These shifts in consumer spending will continue to evolve for the next several years, disrupting many industries in profound ways.”
Notably, consumers will also reduce spending in the following categories to cope with inflation-rising prices:
• Organic and premium groceries will decrease by 30 percent
• Specialty coffee and beverages will decrease by 26 percent
• Alcohol and spirits will decrease by 19 percent
• Pet services will decrease by 16 percent
The report also found that higher prices for gas and groceries have a “trickle-down” effect on spending in every category.
Related: Study: Most Americans Concerned With Rising Food Prices; Proposal Would Redirect Funds Intended For Small Business