While overall foodservice inflation has shown signs of slowing down, a closer look at the data from Meaningful Vision reveals an interesting trend. Dine-in and takeaway price increases have declined at a slower pace compared to delivery platforms.
In April 2024, dine-in and takeaway inflation sat at 6.8%, down from a peak of 15% in June 2023. Delivery inflation, however, stood at 8.1%, although significantly lower than its June 2023 high of 20%. Delivery remains more expensive than dine-in options, but the gap is narrowing. Notably, delivery inflation has cooled down at a faster rate (5% decrease in the past five months) compared to dine-in (2% decrease). This suggests the price gap between these sectors may yet shrink even further in the future.
Beyond simply adjusting prices, Meaningful Vision CEO, Maria Vanifatova, emphasizes the need for a more nuanced response to the challenges posed. “Market insights and differentiated pricing policies are crucial for navigating the dynamic environment created by rapidly escalating costs. This includes options such as value-oriented promotions, focused on more affordable menu options, in an effort to attract cost-conscious consumers who are feeling the pinch of inflation on their budgets. Fast-food businesses need to think strategically. By taking into account sector-specific trends and regional differences, leveraging data insights, and adopting innovative approaches to pricing, they can effectively manage inflation and ensure success in 2024 and beyond.”
Read more on fast-food trends and pricing strategy.
