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A New Solution for Tipping Fatigue

Main Takeaway Restaurant brands are executing on their strategy to win back consumers who continue to navigate economic headwinds. State of the American Consumer April CPI was 3.4% roughly in line with expectations but well above the stated 2.0% target (source) US consumer sentiment’s 12.7% decline is the lowest reading in 6-months driven by western based consumers (source) The economy added 175,000 jobs in April missing expectations by 28% (source) US GDP grew 1.6% in Q1, missing the...

11 months ago • 2 min read

Main Takeaway Restaurant brands must get creative in managing their value equation and regaining traffic as consumers adjusts to economic headwinds. State of the American Consumer March inflation ran hot for the third straight month rising 3.5% (source) Monthly inflation can misrepresent the long term impact felt by consumers: 12-Month Inflation: car insurance +22%, vehicle maintenance +8.2%, and beef +7.6% 3-Year Cumulative Inflation: all goods +17%, food away from home +20%, housing and...

12 months ago • 1 min read

Main Takeaway Economic uncertainty and traffic headwinds raise the stakes for menu price increases. State of the American Consumer December inflation of 3.4% ran hotter than expected (+0.2% vs forecast) driven by slow moving indicators - shelter (+6.2%) and car insurance (+20%)Food away from home continues to remain above core inflation at 5.2% (source) Credit card delinquencies surpassed pre-pandemic levels while borrowers making the minimum payment climbed above 10% (source) Consumer...

about 1 year ago • 1 min read