Diners are “price weary” and eating out less often, restaurant executives told investors last week.
by Grace Dean
Business Insider
Many consumers are thinking carefully about how they spend every dollar, with some cutting back on visits to quick-service restaurants, executives told investors on a series of earnings calls last week. To win penny-pinching customers back, some say they’re planning smaller price increases for the rest of the year.
Many fast-food chains described a gloomy outlook. Wendy’s CFO Gunther Plosch told investors on Thursday that consumers are “still under pressure” — especially those with household incomes under $75,000. “They are reducing frequency, so visitation is down.”
Chains raised prices drastically during the pandemic to offset rising labor and food costs, and it’s coming back to bite them. Some diners are cutting back, saying that fast food is just too expensive and no longer represents good value.