Consumer Trends

Menu price hikes may scare away customers

With predictions that meat, dairy, produce and other commodities are going to cost more in the next few months, should you raise menu prices to keep profits on track? Not the best solution, according to a report from American Express MarketBriefing. About one-third of consumers surveyed said they would decrease their visits to a restaurant if it raised prices. 

  • 30% of men and women would reduce visits to fast food establishments, 31% to fast-casual spots and 32% to full-service restaurants
  • 18% of respondents would visit a different fast food restaurant, 23% would choose a different fast-casual place and 21% a different full-service establishment
  • 58% of women would cut back on appetizers, 48% on entrees and 43% on desserts if the cost of a dinner out increases
  • 25% of men would decrease their soup consumption compared to just 16% of women

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