TREND: With limited budgets and a shaky economy, Today’s Consumers traded down (79% say they settled for less than exactly what they wanted in order to save money) and traded in (more than half, 58%, clipped/downloaded restaurant coupons). Of those who eat out once a week or more, a quarter (24%) used restaurant coupons “a lot.” In the process, consumers learned they can live without much of what they once had and did – an experience that they reported was better, even much better, than expected.

OPPORTUNITY: Having rethought price, consumers are now rethinking value. And they do so with an open-mindedness and objectivity – actively searching for what is worth the money, across all price points. To differentiate themselves in a highly competitive marketplace and build their businesses, it’s important for restaurateurs to make their own objective assessments. Identify aspects of what you offer that may no longer resonate with your customers and target customers – where is your business the most vulnerable? For example, if you’ve been competing primarily on price, when customers loosen their wallets a little, will yours still be their restaurant of choice? Profile shifts in customers’ priorities – what things are more important because of the recession? Have fewer distractions meant more time with family, which they don’t want to lose? Are locally sourced, fresh foods now more important than price? Are special occasions more special and to be celebrated by dining out, and are you prepared for expectations? Identify and deliver on new definitions of value such as these, and understand what your customers are willing to pay for.

CAUTION: While consumers will remain interested in high value, don’t assume that when they are in a position to spend that their thinking will remain strictly price-driven – or that they have accepted living with less across the board. They will simply reassess what they are willing to pay for. Trend Source: Yankelovich MONITOR® 2009