Unfortunately, with the rising cost of living, it is no great surprise that people will be looking for ways to save money in 2023 and this is expected to have a negative impact on the hospitality industry.
With less disposable income, nearly 90% of consumers will be looking to save money when eating out next year, as reported by insights company, IGD (The Institute of Grocery Distribution).
Although IGD forecasts the food and drink market has grown by 6.6% in 2022 vs. 2021, when inflation is stripped out it actually equates to a 2% decline, as tough market conditions continue.
IGD expects many consumers will eat out less frequently in 2023 and will spend more overall on retail, opting for cheaper products, as well as switching to own label.
Fears over increasing energy bills and mortgage repayments, is also starting to impact consumers in higher income groups spending behaviour, seeing less spent overall.
Looking To Save Money
IGD’s research found that 89% of British diners will look to save money by eating out differently in 2023. This includes:
47% of people seeking out money off vouchers
45% skipping a starter
44% choosing a cheaper main course
43% not having a dessert
28% drinking tap water
21% leaving a smaller tip or no tip at all
Only 11% said they won’t be using any tactics to save money.
How the Hospitality Industry Can Navigate Changes in Consumer Spending
As diners are looking to cut back their spending, personalised discounts will be a great way to increase footfall and generate additional revenue.
Make it attractive for customers to visit again, printing a coupon on the receipt itself, will help to get repeat business and increase spending by promoting cross selling and upselling.
Rewarding loyal customers will be very important to keep your existing customers engaged. We recommend offering loyalty points and other personalised deals to incentivise them to spend more.
It is likely customers will be more picky about where they choose to eat, making sure you provide excellent customer service and your guests have a positive experience, will help with repeat business and positive word of mouth.
Efficient & Convenient
Getting good value for money will be high up on customers’ lists, so make sure your business is set up to be efficient and convenient. Offering table service using mobile POS units will make sure you can deliver a faster, more reliable service.
Some customers may prefer a takeaway as a cheaper alternative to eating out, so offering online ordering, delivery or collection service will provide plenty of ways to engage with new and existing customers.
How MCR Systems Can Help
At MCR Systems, we are experts within the hospitality industry, providing reliable solutions to help increase footfall, reach new customers and improve service, including loyalty, online ordering and our mobile EPOS solution – SymPOS GO. To find out more about our solutions and how they can help your hospitality business in 2023, call our expert team on 0116 299 7000, or email firstname.lastname@example.org