New Insights from Gravy Analytics Reveal Consumers Are Choosing to Shop and Dine Closer to Home Rather than Travel
The company's Q1 Consumer Trends Report highlights how consumers are increasingly returning to discretionary spending, focusing on in-store shopping and dining out over booking hotels
DULLES, Va., May 16, 2023 /PRNewswire/ -- Gravy Analytics, the leading provider of enterprise location intelligence, today released its Q1 Consumer Trends Report, which analyzed foot traffic data across a variety of locations from Q1 2022 to Q1 2023 to see how consumer behavior has changed across industries. The report found that foot traffic increased to businesses in categories like shopping and restaurants, but there was a significant decrease in accommodation traffic. The data indicates a modest return to discretionary spending, with consumers prioritizing shopping and dining out closer to home rather than traveling.
Consumers return to in-person shopping and dining out across restaurant types
Q1 2023 also saw consumers spend on dining out across restaurant types. While fast food restaurants (25%), ice cream shops (32%), and coffee shops (23%) continued to see the strongest foot traffic growth, restaurants like Italian (9%) and Mexican (13%) eateries and family-style restaurants (6%) saw healthy increases in foot traffic in Q1 2023 compared to Q1 2022. Foot traffic to higher-end chain restaurants, including Outback Steakhouse and Ruth's Chris, saw a dramatic dip in Q4 2022 before rising again in Q1 2023. Additionally, in Q1 2023, visits to non-chain restaurants in the category were 10% higher than the same period in 2022.
With consumers spending closer to home, accommodations take a hit
"Insights from the Q1 2023 report indicate that consumers are finding room in their budgets for shopping, though prioritizing more affordable retailers, and dining out with their families across a variety of restaurant types," said Jeff White, founder and CEO of Gravy Analytics. "However, consumers are being more selective with their budget when it comes to spending on accommodations, possibly due to ongoing concerns over travel disruptions, rising gas prices, and increased hotel rates."
Gravy's report found that across the country's 50 largest cities, New York and Boston were the only locations to experience year-over-year increases in foot traffic to accommodations with a modest 7% growth in each. Cities that experienced the largest decline in foot traffic to accommodation locations included Kansas City (-38%), Fort Worth (-39%), and Tulsa (-46%).
How these trends will shape Q2 2023
For more information on Gravy Analytics' research, download the full report.
About Gravy Analytics
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SOURCE Gravy Analytics