Brands are reducing and locking prices to help combat rising inflation rates
Trend - Restaurants and grocery stores are locking and reducing prices to show customers that they value affordability and accessibility. Rising inflation rates continue to affect even the most affordable fast-food restaurants. These price commitments help retain loyal customers as they face economic uncertainties.
Insight - Inflation rates in North America are currently rising at a monthly rate that far exceeds the pre-pandemic levels. As a result, many families have to budget carefully to account for food, rent, and other necessities. This means that as food prices rise alarmingly quickly in restaurants and grocery stores, customers must make adjustments to their lifestyles. This places pressure on businesses to offer reduced prices, promotions and fixed-price commitments.
Insight - Inflation rates in North America are currently rising at a monthly rate that far exceeds the pre-pandemic levels. As a result, many families have to budget carefully to account for food, rent, and other necessities. This means that as food prices rise alarmingly quickly in restaurants and grocery stores, customers must make adjustments to their lifestyles. This places pressure on businesses to offer reduced prices, promotions and fixed-price commitments.
Workshop Question - How is your industry maintaining customers during rising economic inflation?
Trend Themes
1. Fixed-price Commitments - Businesses are offering fixed-price commitments to retain loyal customers and showcase their value for affordability in the face of rising inflation rates.
2. Price-marked Products - Price-marked products are gaining popularity among consumers who are looking for simple ways to stick to their budget, prompting brands to introduce price-marked packs and expanding their PMP portfolio.
3. Inflationary Subscription Programs - Subscription programs that provide discounts in the face of inflationary times are becoming more popular among businesses, including food and restaurant brands.
Industry Implications
1. Food and Grocery - The food and grocery industry is introducing value-focused products like low-cost family food ranges and price-marked snack bars to combat rising food prices and inflation rates.
2. Quick-service Restaurants - Quick-service restaurants are looking for ways to offer value to their customers through fixed-price commitments, inflationary subscription programs, and price discounts.
3. Convenience Stores - Convenience stores are tapping into the popularity of price-marked products to attract value-focused shoppers looking for ways to stick to their budget amidst record-high inflation rates.
