The economy isn’t the only factor influencing the supper traffic slump.
Supper used to be a restaurateur’s meal ticket, generating the most sales by daypart. But, suddenly, in the past three years, it has become the weakest-performing meal occasion.
For the year-ending August 2011, there were nearly 150-million fewer foodservice visits at supper, compared to 2008, the last year of growth. And, although dinner is consumed least at quick-service restaurants than any other daypart, full-service operators are especially challenged by the drop-off as they rely heavily on dinner business.
But, while economic pressures force many consumers to eat the evening meal at home, dinner may remain a lonely time at restaurants — even after the economy picks up — since traffic declines aren’t solely linked to shrinking disposable income.
Home is where the heart is
According to the 14th edition of the NPD Group’s “Eating Patterns in Canada” report, even though Canadians are preparing and eating dinner at home more often, and visiting restaurants less, they’re not necessarily cooking meals from scratch. In fact, the percentage of dinners that include ready-to-eat food is now on par with homemade food, showing consumers value convenience and simplicity.
But, these days, one of the biggest challenges foodservice operators face is attracting families with children. The trick is to appeal to cash-strapped parents looking for nutritious meals for their kids — without compromising on taste.
A story of the ages
Restaurant supper-visit habits vary by demographic. And, since each group has its own interests and needs, it’s important to determine your operation’s niche market and target it accordingly.
That said, consider that roughly half of the traffic decline is due to the aging population, while the other half is tied to the behavioural change among younger generations who decreased supper visits.
Today, youth aged 15 to 24 face 14 per cent unemployment — by far the highest of any age group. Luckily there’s the promise of better days as cutbacks among the younger generation appear to be linked to economic pressures, which will alleviate as the unemployment rate drops.
The silver lining
Despite a major shift in consumers’ evening meal habits, operators can win back dinner visits by providing takeout, while meeting demand for convenience, taste and quality. For example, managers should promote items that are difficult to make at home, creating interest with limited-time offers and menu innovation.
Providing the best value will continue to draw customers for the foreseeable future. More specifically, casual-dining and midscale restaurants are most likely to increase traffic by offering better market value, which may include offering daily specials, coupons and combo meals with a free drink or dessert; social media is also a great way to encourage repeat visits.
Meanwhile, as more retail outlets offer quality prepared meals and fast-casual chains elevate food offerings and dining decor, there’s an opportunity for quick-service operators to offer convenience as well as fresh, flavourful food with a health halo.
