Consumer savings trends impact restaurant industry

07.04.09
By Lewis Green

With credit card debt a major problem for American individuals and families, people are generally working hard to curb their spending habits and allocate extra money to pay off bills and build up savings accounts.

Consumers are regularly saying these days that they are making major cuts to their normal lifestyles and activities. Households across income ranges are postponing, delaying or scaling back on typical vacations and many are repairing cars and homes instead of purchasing new ones.

One common thread among families for many months has been the tendency to dine at home or eat out only occasionally and with coupons.

This last trend has meant a significant drop in restaurant revenue and overall performance.

The National Restaurant Association has reported that restaurant operators have witnessed negative customer traffic levels in May. With more customers dining at home, the group says this marks the 21st consecutive month of traffic declines.

Restaurant operators seem to be optimistic about an economic recovery in the months ahead, according to the National Restaurant Association, and a return to more normal levels of business.

This may depend on if consumers become more willing to spend versus save their disposable income and if they begin using credit again more frequently.

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Consumers are spending less on meals out