Value is always a key consideration when dining out, and this is especially true during periods of economic hardship and recessionary recovery. While many consumers are choosing conservatively, foodservice operators are also still struggling to recover losses that resulted from the pandemic. Instead of competing on price points, restaurants will need to appeal to Americans’ other pressing value needs, including the convenience of digital ordering, takeout and delivery options and budget-friendly deals that boost check averages instead of cutting into an operator’s bottom line.

• The impact of the COVID-19 crisis on consumer behavior and restaurant value and pricing.

• The recessionary and recovery impact for restaurant value and pricing.

• Balancing value and the bottom line.

• Competing with unique value channels like retail foodservice.

This is the first Restaurant Value and Pricing Report in Mintel’s US foodservice library. The purpose of this Report is to analyze consumers’ attitudes, behaviors and perceptions toward restaurant value and pricing, especially as it relates to the COVID-19 crisis and resulting recession.

For the purposes of this Report, Mintel has used the following consumer segmentations:

• Serious Value Seekers: Americans who say value is important or extremely important when choosing a restaurant.

• Value Seekers: Americans who say value is extremely important, important or somewhat important when choosing a restaurant.

• Value-Neutral Consumers: Americans who say value is neither important nor unimportant when choosing a restaurant.

• Value Rejecters: Americans who say value is somewhat unimportant, unimportant or not at all important when choosing a restaurant.

The first COVID-19 case was confirmed in the US in January 2020. On March 11, the World Health Organization declared COVID-19 a global health pandemic, and on March 13, President Trump declared a national emergency in the US. 

Across the US, state-level stay-at-home orders rolled out throughout the months of March and April, remaining in place through May, and in some cases June. During this time, referred to as lockdown, non-essential businesses and school districts across the nation closed or shifted to remote operations, which meant that most restaurants were only open for takeout and delivery. With the US economy entering a recession and Americans bulk buying groceries instead of visiting restaurants, operators began rolling out value deals during lockdown to woo them back, such as family meal deals.

During re-emergence, the recession continues, and all 50 states have relaxed stay-at-home orders and allowed businesses to operate with varying levels of social distancing measures in place. In late 2020 and early 2021, the continued spread of COVID-19 infections has driven some states to slow down or reverse course on reopening plans. Between the recession and restaurant restrictions, operators must continue to roll out new value options, including highly convenient service formats, and carefully consider their prices to help convince Americans to return to dining. Mintel anticipates the US will remain in a state of flux through 2021, until a vaccine is widely available.