Majority of Americans Cutting Back on Dining Out

New market data from the NPD Group reveals 76 percent of U.S. consumers are still wary of the economy and continue to reduce restaurant visits, trade down and order fewer items. The consumers anticipate will be less restrictive with their restaurant visits when the economy recovers; however, they do not expect the economy to recover in the near future.

“The Changing Consumer Mindset: What it Means to the Restaurant Industry" report examined the broad reaching effects the recession had on consumer behavior and thinking and the difference between consumers who are more cautious and control their spending and those who are optimistic and feel economically stable.

The majority of consumers fall into the “cautious, controlled spender" demographic group of unemployed, less affluent and retirees. Twenty-four percent of the respondents are optimistic and have been less inclined to moderate their restaurant behavior, although they did trade down in segment visits since 2007. They cross all demographic groups but are more likely to be employed and live in affluent households.

"There is considerable disparity between the views of optimists and controlled spenders regarding enticement to visit restaurants more often," says Bonnie Riggs, NPD restaurant industry analyst and author of the report. "Optimists place much more importance on service and a relaxing atmosphere than controlled spenders, who are more concerned with price and value."

According to NPD's CREST® service, the restaurant industry is slowly recovering from two years of traffic declines. For year ending February 2011, total industry traffic was flat compared to the 3 percent decline the industry experienced in the same period a year ago. NPD forecasts growth of less than 1 percent for the industry through 2019.