- Restaurant owners are feeling the pinch as inflation takes its toll on consumer spending.
- The owner of a chain of grills told Fox that rising prices have been a challenge for her business.
- About 84% of American consumers plan to spend less on dining out due to inflation.
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Many US restaurant owners say they are feeling the strain of rising inflation rates.
Laura Dickey, the executive director of Texas-based grill chain Dickey’s Barbecue Pit, told Fox News that she’s noticing a shift in the way her customers are spending their money, which is affecting her business.
Inflation hit a 41-year high in March. Soaring prices have impacted goods and services from gasoline to groceries. It has caused American consumers to put the brakes on spending.
According to the Bureau of Economic Analysis, personal consumption spending — the government’s measure of total consumption spending — rose 0.2%, or about $35 billion, during the month of February on the back of inflation.
Dickey said the impact of inflation has been a challenge for her restaurants. She’s noticed “recession-minded behavior” from her customers as they become more price conscious and concerned about what they’re spending their money on.
Dickey’s observations on people’s grocery budgets agree with new data released from a survey of American consumers’ spending conducted for Bloomberg.
According to the Harris Poll, about 84% of Americans plan to spend less when inflation is high.
Consumers plan to cut spending the most on restaurants and impulse buying, and entertainment experiences like concerts, Bloomberg reported.
One consumer told the outlet he was having to drastically change his grocery shopping due to higher prices, switching from buying fresh produce and organic food to canned and frozen foods.
The survey also found that 40% of American consumers said higher prices caused them to compromise when buying healthy products.
Meanwhile, Dickey’s struggle will be shared with other business owners in the hospitality industry. Drew Shane, the general manager of a restaurant in West Palm Beach, Fla., told a local news outlet that his company had to adjust menus and change some items to keep costs down for customers.
In contrast, Latoya Perry, a Florida-based caterer, told the same outlet that customers are still willing to pay its prices because of the quality of the food it offers.
Higher prices have not only impacted the restaurant industry, but also the way workers connect with each other. The rising cost of lunch due to inflation, known as “lunchflation,” has meant that some people cannot afford to eat out with their teammates.
One worker told Insider, “I really enjoy going out to lunch, so it was hard to turn that piece of joy off.”