TREND: Consumers are willing to splurge – 83% said they would do so by going out to celebrate a special occasion like a birthday, anniversary, or holiday.

OPPORTUNITY:
Upscale restaurants and/or those charging premium prices face some challenges competing for this business. Consumers typically have fewer resources, and definitions of luxury are broader. For some, it still means a formal experience; for others it may be a celebrity chef-driven menu, specialty local ingredients, or a superior service experience. Regardless, consumers are reconsidering what justifies a premium. Upscale restaurants need to hone specific identities that consumers can understand and connect with as they determine what deserves their time and money. This brand promise must be consistently communicated and delivered, from the look and feel of the restaurant Web site through the thank-yous as guests depart. Whatever it is that makes your restaurant experience unique, clearly articulate and deliver on it. In marketing luxury, it’s also helpful to provide consumers with “permission” to trade up. An incentive can be contributing to a greater good – 69% said that a reason to splurge is if part of what they pay goes to a good cause. This concept of social responsibility extends beyond literally supporting charities to include business practices and environmental consciousness (sustainability, no waste, etc.) – a restaurant’s mission beyond food.

CAUTION:
When consumers choose luxury/upscale venues, expectations are high. Operators, especially fine dining, must do more to prove the value – to make every penny worth it.

Data source: The Luxury Market and the Recovery Customer, Yankelovich/The Futures Company