Chicago, IL, Oct. 15, 2024 (GLOBE NEWSWIRE) -- The foodservice industry is experiencing a fundamental shift in consumer behavior, with value emerging as the primary driver behind purchasing decisions worldwide, accounting for 54 billion visits annually, according to the latest Circana™ research. As inflation continues to challenge household budgets, consumers are looking beyond the lowest price point, prioritizing value, quality, and flexibility.
The emphasis on value is reshaping how foodservice operators approach their deal strategies. Visits driven by deal-based occasions grew faster than non-deal occasions in the past year, and while global eater checks have risen between 1% and 30% compared to 2021, consumers are increasingly seeking promotions, loyalty programs, and creative offerings that deliver more than just low prices.
Across different regions, Circana is seeing distinct strategies and consumer responses to value in the foodservice sector:
- Asia Pacific: While inflation has impacted the region, consumers are increasingly seeking value through promotions like snacking deals and combo offers. In China, where 53% of traffic is driven by deals, operators such as KFC, McDonald’s, and local chains like Dicos are engaging in price wars. However, it’s not just about slashing prices—combo deals and loyalty promotions are gaining traction as operators focus on adding value, with 9.9-yuan meal deals proving particularly popular.
- Europe: Despite challenging economic conditions, including high inflation and rising value-added tax (VAT), consumers are increasingly focused on finding value. Managing pricing strategies, adding value, and implementing smart promotions have become critical for operators to retain customers and prevent them from trading out of the foodservice market altogether.
- United States: Operators are focusing on deal strategies that help consumers manage tight budgets without pushing them to trade down from premium occasions. The key differentiator in the foodservice sector is not offering the lowest price, but rather providing value through creative offerings and strong customer engagement.
“As the foodservice industry continues to navigate these changes in consumer behavior, value has taken on new meaning,” said Tim Fires, president, Global Foodservice, Circana. “It’s no longer just about offering the lowest price, but about creating innovative combinations of pricing, promotion, and experiences that resonate across different dining occasions. By understanding both at-home and away-from-home dining decisions, businesses can better position themselves to meet consumer needs and succeed in today’s market.”
Circana is at the forefront of understanding the transformation in consumer behavior across the U.S., Canada, Great Britain, Spain, France, Italy, Germany, Australia, China, Japan, South Korea, and Brazil. For more information, or to speak with one of our experts, visit circana.com/industry-expertise/foodservice.
About Circana
Circana is a leading advisor on the complexity of consumer behavior. Through superior technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at circana.com.
