The growth in spending at restaurants may slow in the coming months, reflecting a slight downturn in consumer sentiment, as measured by Kurt Salmon’s Restaurant Spending Trajectory.
“The growth in consumer spending over the last year has been fueled by rising employment and higher restaurant prices. While the number of people with jobs will likely continue to increase, if consumer sentiment continues to soften, restaurants will need to be thoughtful about pricing,” said Kurt Salmon restaurant strategist Todd Hooper. “Concepts serving the most price-sensitive segments will need to resist price hikes, whereas other concepts may benefit from targeted price increases to offset slowing volume growth.”
17 April 2012