Consumer perceived deals, like combined item specials and dollar/value menus, that enticed consumers to visit restaurants during the height of the recession no longer serve as an impetus for driving traffic growth,according to The NPD Group, a leading market research company. This is a reversal from three years ago when consumer perceived deals were up +3 percent for three years in a row and non-deal visits were trending down.
While the total number of combo meals ordered is up, the percent of consumers indicating that they ordered a combo meal “on deal” is down, which may be an indication that consumers no longer perceive combo meals to be a deal, or combo meals have become everyday price and the way to order a full meal.The decline in dollar/value deal related traffic is likely tied to a move away from 99 cent items and the type of food items being offered on these menus.Like combo meals, many consumers perceive them to be the way to order individual items, smaller meals or the way to “build your own combo.”Coupons, discounted price, and senior citizen deals are, however, up, NPD finds.
“In 2008 when economic concerns caused many consumers to stop some of their discretionary restaurant visits, many restaurant operators turned to offering consumers more deals to drive traffic,” says Bonnie Riggs, restaurant industry analyst. “As has been historically the case, when deals are in the marketplace for an extended period of time, consumers tend to expect them or see them as everyday price and not as a deal. What should restaurant operators do? Examine their value proposition, not just in terms of prices but in quality and service; leverage the convenience factor of restaurants; and offer variety, all three of which consumers have consistently told us are important to them.”
Posted by Lauren Grelle