In June 2024, Affinity Group interviewed 491 households across the nation. Interestingly, they found that families were dining out more than ever. How can that be, one wonders, with traffic on the decline? Technomic recently revised its annual sales forecast, reducing it from an expected 5.3% to 3.8%. Restaurant Business reported Joe Pawlak, Technomic Managing Principal, stating that this level of revision is unusual and may suggest a change in consumer behavior that was not expected as 2024 unfolded.
So, back to our trending report on family dining as summer winds down. What’s prompting the increasing number of nights out for a bite to eat? Let’s dig a little deeper into the study to uncover the disconnect.
Why Are Families Going Out to Dinner More?
According to the study, almost 75% of families reported they are dining out more in 2024 than the year before. The reason for increasing their restaurant visits centered around saving time and wanting to minimize the effort and stress associated with making dinner. About 60% of families reported they eat out to reduce efforts and save time.
What Are They Looking For?
These families are looking for three essential elements when dining out: convenience, value, and variety. About 40% felt a diverse menu was important in their decision to dine at a specific restaurant. Just over 40% thought value was essential. Surprisingly, when asked about kids’ menus, most said they are not essential, though appreciated.
In essence, when selecting a restaurant, they’re looking for diversity—menu items that appeal to different family members—and affordability.
Economic Pressures & Loyalty
Cost significantly influences a family’s decision on where to dine. Almost 60% of respondents look for discounts and deals when selecting a restaurant.
Loyalty programs also play a significant role in their decision-making. Almost 30% will likely return to a restaurant that offers a loyalty program and one where their participation leads to discounts or rewards.
How do you create a loyal patron and encourage first-time visitors to return? A whopping 80% have a restaurant they visit frequently. According to the study, becoming a “favorite” restaurant requires good food, reasonable prices, and friendly service. Predominantly, a positive dining experience centers around high-quality, good food. The factors influencing their decision to return to a restaurant included:
- Food: 73%
- Atmosphere and Service: 50%
- Friendliness and Value: 46%
- Server and Wait Time: 32%
On the flip side of loyalty is, of course, disloyalty due to negative experiences. Once experienced, it’s hard to get a customer to return and try again. Only about half of those who have a bad experience will return and try again, even if a significant discount or refund was applied to their meal.
Unfortunately, customers are more likely to share these negative experiences on social media, with 77% planning to tell others and 44% leaving a review on Yelp. Comparatively, only one in three use social media to share a positive experience.
Fine Dining to Affordable
In response to changing market conditions, including reduced disposable incomes due to inflation, some restaurants are shifting away from fine dining. One example is Farow in Niwot, a restaurant in Boulder County. Known for their locally sourced, high-quality food, they are doing everything they can to stay in business, including pivoting away from fine dining toward a farm-to-table concept that offers lunch and dinner at lower prices.
Their new menu includes snacks, light bites, and larger bites. Their goal is to become a neighborhood eatery that people can afford to visit several times instead of just once. Much of their food is grown using organic and regenerative farming methods.
The first thing you’ll notice when you visit their website is a popup offering $50 toward a $150-plus visit. You can also win $500 in a drawing by leaving a review of your favorite dish. Two other prominent displays are their online ordering and becoming a VIP through their loyalty program.
They also have a wine and spirits retail shop and three-monthly subscription clubs: wine, whiskey, and tequila/agave. Happy Hour is from 3 p.m. to 5 p.m. daily, and on Friday and Saturday nights, they offer live jazz on their patio from 6 p.m. to 8 p.m. You can even attend monthly cocktail classes.
They have essentially covered all their bases in attempting to increase their sales and bottom line: retail, monthly subscription clubs, loyalty programs, online ordering, live music, classes, and a happy hour.
Clearly, they are finding a way to differentiate themselves and are incredibly good at adapting to market conditions while encouraging repeat customers. For restauranteurs looking to adopt a “best strategy for survival,” Farow in Niwot exemplifies the many possibilities that align with increasing revenue.
