The trend: How, what, and where consumers are eating is changing due to a strange confluence of factors.
It’s complicated: There’s no simple explanation that sums up the current moment. Instead, an array of factors that include geopolitical disruptions and weather events has driven up grocery prices. Meanwhile, restaurants have been able to adapt thanks to their ability to access ingredients at wholesale prices and economies of scale, adjust the ingredients they use, and lock in lower prices through forward contracts.
Challenging times: Rising grocery prices haven’t helped all restaurant-related businesses as a number of startups have struggled in the wake of rising interest rates and investors’ cash drying up.
Why it matters: The underlying force shifting consumers’ eating habits is their search for value. That’s why 58% of the most-watched ads across top restaurant brands from May through early August highlighted deals, prices, or mobile app or loyalty rewards, up from 46% from January through April, per an iSpot analysis reported by the Journal. To capture consumers’ attention, grocers and restaurants need to find novel ways to convey the value of their products.
Go further: Read our report on the Era of Uncertainty here.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.