The article that I read
involved an analysis of casual dining, which is a sub-industry of the restaurant business, by food service analyst, Bethany Wall.
Though casual dining receives a generally positive attitude, the industry has
not been as successful as it could be because “price sensitivity has remained,
showing that the behavior is more of a lifestyle shift rather than a
recessionary behavior” (Wall). This was very interesting because during the
recession, many consumers preferred cheaper method of dining, such as fast food.
Though the economy has bounced back, consumers are still continuing those trends.
Since an important part of any business is pleasing the costumer, it makes me
question what consumers of the restaurant industry see as a good value. From this
article, it seems that customers favor the price of a meal over the quality.
Based on the article, it appears that the future of the restaurant
industry will remain dominated by the fast casual and quick-service restaurants. This is
because they provide the quick and cheap meals
that consumers are looking for in these more conservative times. Also, because
consumers prefer healthier foods and the government is pressuring restaurants
to include healthier choices, the industry as a whole will need to adjust their
menus. This will become evident in the coming months and years as restaurants begin
this move toward better for you foods, or BFY. Finally, According to Mintel’s
article on casual dining, the future will see this industry becoming much more innovative
then it already is, including more deals and discounts, in an attempt to gain
more customers, which I agree with. It seems that if restaurants do not become more
inventive, then their business will fail.
An interesting fact about the restaurant industry is that
during economic challenges, the industry as a whole will compete in pricing
wars. As Bethany Wall explains, the restaurants will
need a variety of strategies in order to standout in the industry and create
more customer traffic.
I did not find it surprising that during the recession many customers preferred a cheaper method of dining, pose to fast food. I just find it interesting how customers did not return to the elegant form of dining that ensured good quality food. I feel that as long as the economy remains at its current state, customer's dining preferences will stay the same.
ReplyDeleteWhat effects do you think would cause customers to return to the casual and elegant dining experience?
I, like Jenna, am interested in the fact that consumers continue to prefer the faster, cheaper restaurants even after the economy started recovering. To answer her question, I believe that the market will automatically balance out when consumers realize that they cannot have cheap and quality food at the same time. More health-conscious customers will gravitate towards the casual dining that is, although more costly, usually healthier.
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