Securing growth during high inflation times
In these tough economic times, UK & Ireland consumers are taking extra steps to manage their budget with an average 10% decrease in weekly and monthly visits. Although the frequency of visits has decreased, it's not all doom and gloom - consumer behaviour is still resilient and there are plenty of opportunities for operators and suppliers to take advantage of. In today's blog post, we take a closer look at some of the integral statistics that paint a picture of this cost-of-living pressure. Knowing what factors are influential can help businesses make better decisions for future success.
Priorities for spending over the next 12 months
It's no surprise that, given the current economic climate, that people are looking to reduce their overall spending. However, some indications suggest that this downturn may not be as dire as similar economic recessions of the past. One especially strong area is people's commitment to visiting hospitality venues such as cafés, bars and restaurants. Our parent company Entegra’s recent study shows that spending on these activities is still a top priority for consumers, surpassing holidays and even day trips out!
Those customers who do expect to reduce spend will seek out deals and reduce volume of consumption with very few looking to trade down on quality. With 56% of consumers agreeing they will be ‘making the most out of their out-of-home visits’ when they do go out, you can see the importance of both operators and suppliers in the sector providing support to drive this behaviour and ensure business growth.
The drivers for choosing a new dish out
It's understandable that in such a challenging trading environment operators look to cut costs where possible. However, a recent survey by CGA shows that when it comes to out-of-home visits such as going out for dinner or drinks, consumers are firmly prioritising quality over cost. This is also supported by the statistic that 65% of consumers would choose a more expensive meal which is better quality over a cheaper meal.
Therefore, to remain competitive and attract these customers, operators should not compromise on quality simply to meet financial targets. Keeping up standards will be key: investing in excellent ingredients and equipment, providing great service and ensuring the atmosphere has that special something are bound to pay off in the long run.
Value for money is?
These days, it's essential that businesses understand the important link between quality and value for money in their customers' minds. Overwhelmingly, consumers define value as something being 'good quality', rather than simply a deal or promotional offer. In fact, only 13% of customers view value as the cheapest option - so premium offerings are what will really draw them in.
Businesses need to realise that by tapping into this 'treat or premium' mindset with their upgrades and specials, they can better capture the imaginations of their customers. After all, it's such an important part of delighting them with a great product or service experience!
The trend of sustainability is holding strong, even as the world's financial climate shifts. While some aspects of consumer behavior may have changed due to economic circumstances, when it comes to food, people are still making an effort towards sustainability.
They're looking for more seasonal options and ingredients that have been produced locally, while working to limit the amount of waste generated during meal preparation and consumption. Not only is sustainability a worthwhile cause, meeting these needs pays dividends in terms of building loyalty and a venue’s reputation, with 42% of people likely to recommend a venue to family and friends and 38% likely to visit the venue more frequently.
How Beacon can help
As operators navigate the current supply chain issues and soaring costs, 53% are turning to more selective supplier relationships. What this means is that each partnership must now be deeper and far reaching if it's going to reap rewards for both the supplier and operator. Relationships must move beyond mere transactions into solid partnerships with consistent support from the supplier.
It's no longer enough for suppliers to be involved in just one-off scenarios – operators want reliable, meaningful partnerships over time. And that’s where Beacon's services can really help, offering reliable assistance in strategic sourcing; offering them secure partnerships with top-quality suppliers and by providing continued customer service throughout the entire process.
We understand how important it is to save on essential business costs. That's why negotiating contracted pricing and service levels with our impressive directory of expert supply partners is something we take very seriously. With food and beverage, commodities, toiletries, business services, IT and more already covered in our extensive portfolio, you can rest assured that your business needs are taken care of. But if there's something specific you're on the lookout for, we won't hesitate to further customise a contract specifically for you. Discover the savings potential today with Beacon!