Financing

Post-election spending impact

clinton trump pins

Regardless of how wildly Hillary Clinton or Donald Trump celebrates victory on Nov. 8, restaurateurs are the ones likely to suffer a hangover. New research shows sizable chunks of the public are planning to spend less on dining out if one or the other candidate wins, with the cutback forecast to be sharpest if the Republican prevails. 

A survey of nearly 1,000 consumers by Technomic found that double-digit portions of consumers are poised to tighten their spending on nonessentials, including restaurant visits, after the votes are counted. Thirty-two percent of respondents said they’d spend at least somewhat less on discretionary items if GOP candidate Trump is elected as the nation’s 45th president, while 22% said the same of a Clinton victory.

Much of that belt-tightening would come at restaurants’ expense, Technomic found. Of the consumers who said they’d keep a tighter grip on their discretionary dollars if Trump gets the nod, 56% said they’d cut back on spending in all three major types of restaurants—limited service, casual full service and fine dining.

Among those who’d conserve if Clinton succeeds President Obama, 56% said they’d cut spending in casual restaurants, and 53% said they’d cut back on limited service and fine dining.

Only 11% of the respondents said they regard the election with a shrug, a virtual nonevent they view with indifference. Nearly a third of consumers (32%) said they’re disgusted by the election, and nearly the same (31%) said they’re afraid of the outcome.

The information was gathered for a white paper from Technomic on the factors behind a downturn in restaurant  traffic and sales in the second half of the year. Additional preliminary data about consumers’ mindsets and the effect on restaurants is available on Restaurant Business’ website, RestaurantBusinessOnline.com

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Financing

Looking for the next Chipotle? These 3 chains are already there

The Bottom Line: Wingstop, Raising Cane’s and Jersey Mike’s have broken free from the pack of well-established growth chains. Here’s why this trio stands out.

Financing

For Starbucks, 2 years of change hasn't yielded promised results

The Bottom Line: The coffee shop giant’s sales struggles worsened earlier this year, despite a flurry of efforts to improve operations and employee satisfaction.

Food

Nando's Americanizes its menu a bit as U.S. expansion continues

Behind the Menu: Favorites like mac and cheese, bowls and salads join the fast casual’s Afro-Portuguese-rooted dishes, including the signature peri-peri chicken.

Trending

More from our partners