Rising Affordability Concerns Impact Dining Choices
Concerns about affordability are leading restaurants nationwide to struggle, as frugal diners increasingly opt for happy hour specials, choosing appetizers over main courses.
Recently, Ryan Gerding, a marketing professional from Kansas City, Missouri, arrived early for a meal with his wife at Martin City Brewery. They decided to share appetizers like meatball sliders, pretzel bites, and chicken wings, along with a couple of drinks, using a 2-for-1 beer coupon. Their total came to $51.31, a significant drop from their usual dinner bill of around $75.
“It’s nice to enjoy happy hour prices and really get more for less since appetizers are cheaper,” Gerding mentioned. He also remarked, “We’ve been surprised to see how packed it gets at the bar, sometimes as early as 4 p.m.”
Sales of appetizers in the U.S. have jumped by 20% this year up to August, according to Buyer’s Edge, a company that monitors food purchases in the restaurant sector. This increase is notable compared to the usual modest growth rates, while entree sales have remained flat, despite an expected growth of about 3% historically.
Jim Pazanese, the executive vice president of global strategic sourcing at Buyer’s Edge, noted, “Initially, we thought that 20% growth was an error, given that we haven’t seen such price hikes in a slow-growth industry.” Their service tracks over $74 billion in food service spending each year across 200,000 establishments.
Buyer’s Edge has reported that the demand for main dishes has fallen this year, largely due to escalating meat prices. On the other hand, there’s been a surge in appetite for foods like mozzarella sticks, pickle chips, and various small bites.
This August, Applebee’s Grill + Bar introduced a $15 appetizer named the Ultimate Trio, launching a campaign coinciding with the NFL season. Diners can select three items from options such as boneless wings and chicken wonton tacos.
Ed Dougherty, CEO of Dougherty Enterprises, which manages over 100 Applebee’s locations, explained, “We wanted to offer something that serves both as an appetizer and a main dish. It’s crucial for us to show value on the menu.” He added that these pricing strategies provide notable savings for customers, considering the higher costs of main dishes such as steaks at $26 and pasta at $22.
Dougherty emphasized that although main dish prices are high, increasing customer traffic is beneficial. “The restaurant business thrives on the number of transactions. Higher volume means more chances to upsell,” he stated.
Even upscale steakhouses are adjusting to more budget-conscious patrons. Willie Degel, owner of Uncle Jack’s Steakhouse in Manhattan and Bayside Queens, noted that about 15% of his customers are now ordering appetizers instead of mains and sharing larger dishes.
Degel, known for hosting Food Network’s “Restaurant Stakeout,” pointed out the surge in demand for burgers and sandwiches this year, coinciding with rising meat prices. His menu has expanded to include five types of burgers, with options like the Big Jack Burger priced between $29 and $39. This contrasts sharply with high-priced steak dishes, like the $95 rib chop and the $165 porterhouse for two.
