Restaurants Eat Inflation Costs Amid Surge in Reservations
Close to three-quarters of respondents to an OpenTable survey said they went out to eat at least once a month and 40% said they dine out weekly.
August 31, 2022 at 02:47 PM
2 minute read
Dining demand is holding steady despite persistent inflation, according to a new OpenTable survey.
Seated reservations in restaurants from Aug. 1-21 this year rose 10% compared to 2021, reaching the pre-pandemic level in 2019. Across North America, people are going out to restaurants regularly: Close to three-quarters of respondents said they went out to eat at least once a month and 40% said they dine out weekly.
"We're in an unprecedented time here," said Debby Soo, OpenTable Inc.'s chief executive officer, on Bloomberg Radio. "We're seeing that demand continues to hold."
Notwithstanding all the pent-up demand being satisfied, restaurants are also shouldering the brunt of rising food costs.
Food prices jumped 15% in July, whereas restaurant prices rose 7.6%, data released by the US Department of Labor shows. In a statement, Soo said this is partly because restaurants are digesting most of the increase. Other diners are visiting lower-priced restaurants, cutting back on drinks, skipping dessert, or opting to share a meal to cut back on spending, data from OpenTable shows.
New types of dining behavior are also emerging as COVID-19 seems to recede. While walk-ins were prevalent before the pandemic, people now book two or three days in advance, Soo says. What used to be unattractive spots — such as bar seats — are experiencing a twofold increase in desirability, "because you want to be in the fray; you want to be around people."
In New York and San Francisco, some companies' requests for employees to return to the office has filled lunchtime shifts at restaurants. "Now, going out to that meal is very much a planned event, like it's a bigger deal," says Soo.
The one place diners aren't scrimping is service: Nearly half of the people surveyed said they now leave a bigger tip.
Zijia Song reports for Bloomberg News.
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