Amidst rising inflation, consumer spending on restaurant visits has been declining. However, Hispanics continue to play a significant role in the industry.
According to a recent CNBC news story, a report from AlixPartners reveals that consumers are more inclined to reduce their visits to restaurants rather than opting for cheaper dining options to save money in the face of rising inflation. A survey conducted in December indicated that 74% of respondents planned to cut back on dining out. The report highlights that the cost of eating out has been steadily increasing for over a year, with food prices away from home rising by 8.6% in April 2023 compared to the same period the previous year. Additionally, restaurant traffic in April experienced a decline of 3.5% compared to the previous year. Consumers are increasingly cooking at home and bringing lunch to work to save money.
Despite these trends, Hispanics continue to exert a significant influence in the restaurant industry. According to a report by The NPD Group, Hispanics account for an average of 9.8 billion annual visits, representing approximately a quarter of the total restaurant foot traffic. Furthermore, our latest internal data reveals that Hispanics are 30% more likely than the general population to have visited a fast-casual restaurant more than once in the past month. In the fast food sector, over 50% of the US Hispanic population has visited a fast food restaurant more than once in the past month.
- Utilize your data or CRM system to identify popular food items among various consumer segments, including Hispanics.
- Engage with Hispanic consumers by celebrating special occasions such as High School graduations or significant holidays and commemorating a significant life milestone.
- Showcase your brand’s story internally by highlighting bilingual or Hispanic employees. Leverage their success and provide opportunities for growth within your organization.
Look for opportunities to UPSERVE and not upsell as you build your brand reputation in the Hispanic community.
Read the original article by Ramon Nieves on LinkedIn