A long-term shift in consumer food-purchasing behavior is occurring due to unfavorable economic conditions, such as rising fuel prices and the ailing housing market, speakers at the Restaurants 2008: Trends and Directions Conference in Chicago said yesterday.
"Higher menu prices have definitely had an impact, although consumers don't appear to blame restaurants for raising prices," said Darren Tristano, executive VP of foodservice consultant Technomic, which hosted the conference. Nearly 200 restaurant operators attended the conference.
"Our research indicates that consumers understand that restaurants' food costs have gone up," he explained. "Nevertheless, the vast majority of consumers say they will eat out less often at full-service restaurants and replace these occasions with meals [bought at a supermarket and] prepared and eaten at home."
Commodity expert Bill Lapp said at the conference that restaurant operators will likely be squeezed by higher food costs for the foreseeable future and will find it increasingly difficult to avoid raising menu prices.
A larger-than-anticipated drop in discretionary consumer spending prompted Technomic in January to downgrade its 2008 U.S. foodservice industry nominal growth forecast from 5.1 percent to 3.6 percent and again in May to 2.2 percent.
