Attracting Customers Through the Cost-of-Living Crisis
7th September 2024
The cost-of-living crisis has had a profound impact on UK consumers, altering their spending habits and priorities. As the cost of living continues to rise as we enter the autumn, consumers and businesses alike are searching for affordable meal options. Wholesalers, bars, and restaurants have felt the pinch, struggling to balance rising costs with declining demand. To keep customers coming back, it’s essential to offer delicious, budget-friendly meals.
At Kara Foodservice, we believe that affordability doesn’t have to mean sacrificing taste or quality. Our diverse product range is the perfect solution for creating mouthwatering dishes without breaking the bank.
Price sensitivity takes centre stage
High prices have emerged as the primary deterrent for consumers purchasing food and drink when out and about, with 48% citing this as a major concern. This significant increase in price sensitivity reflects the financial pressures faced by many households, even as consumer sentiment has shown some signs of recovery.
Despite a slight improvement in financial wellbeing, a significant portion of the UK population remains under financial strain. In May 2024, 27% of consumers described their finances as “healthy,” while 43% said they were at least “OK.” However, a concerning 10% of people are either struggling to keep up with bills or have already missed payments.
Changing consumer behaviours
The cost-of-living crisis has forced consumers to become more price-conscious shoppers. Offers, discounts, and value-oriented menus have become increasingly attractive to those with limited budgets. This shift in behaviour presents opportunities for foodservice operators to differentiate themselves and attract price-sensitive customers.
While there has been a rebound in consumers’ assessment of their financial security, the recovery has slowed in 2024 compared to the previous year. Many households continue to face the lingering effects of the cost-of-living crisis, including higher interest rates and reduced disposable income. This means that price sensitivity is likely to remain a key factor in consumer behaviour for some time to come.
Opportunities for foodservice operators
The cost-of-living crisis has created both challenges and opportunities for foodservice operators. By effectively communicating their value offerings and promotions, operators can attract price-sensitive customers and maintain their business. Time-limited offers, such as happy hours, meal deals, or seasonal specials, can be powerful tools for attracting budget-conscious consumers. These offers provide a sense of urgency and can encourage customers to spend more than they initially intended.
Premium product launches, such as limited-edition items or upscale dishes, can also be effective in upselling. By highlighting the unique value proposition of these products, operators can justify the higher price point and attract customers who are willing to splurge on special occasions or indulgent treats.
Prepping for the future
The cost-of-living crisis has significantly increased price sensitivity among UK consumers, making affordability a key factor in their purchasing decisions. While there are signs of recovery, many consumers remain financially strained, presenting both challenges and opportunities for foodservice operators. By understanding these trends and adapting your offerings, operators can navigate the current landscape and thrive in the competitive world of travel hub foodservice.
At Kara, we’re committed to equipping you with the most current knowledge that will help guide your foodservice journey. If you are looking at what bakery offering could maximise your value in a café, bar, restaurant, or anything else, we’re here to help! Speak with us for advice on elevating your food experience, increasing dwell times, and improving customer experience, or browse our extensive wholesale product line to begin reimagining your menu today.
