Inflation is causing people to spend more on groceries and there are fears of a looming recession, but the post-pandemic trend of people venturing out to dine and have fun seems to be continuing. Despite high food prices, it seems Americans are willing to splurge on fun and good food.
Last year, consumer interest in restaurants remained flat from a year ago, according to a new Yelp report that looked at certain user behaviors: viewing business pages or posting photos or reviews.
Americans have wanted to go out more after the last three years interrupted by the pandemic, experts and economists have said. Spending on dining out was strong in May, and Americans didn’t shy away from high prices. Sales of food and beverage services rose 8.0% in May from a year ago, according to the latest retail sales data from the U.S. Census Bureau. Food overall was 6.7% more expensive in May compared with a year ago and eating out was 8.3% more expensive, according to separate government data.
Compared to March 2022, diners in March 2023 were looking at more expensive restaurants, Yelp found, reporting that interest in fine dining last year not only surpassed the previous year’s level, but also the pre-pandemic level by almost 20%. Restaurants with four dollar signs, the most expensive tier typically associated with fine dining restaurants, saw nearly 20% more Yelp interactions last year, followed by those with three dollar signs , which experienced an increase of approximately 10%.
By comparison, the most affordable options, those labeled with a dollar sign, saw a 10% drop in interest from Yelp users.
The report also found that pop-up restaurants, those that share temporary space with bars and sometimes with other restaurants, were the fastest-growing businesses, with a 105% increase in openings. Ramen restaurants followed with 45% more business openings last year than the year before.
“The restaurant industry is showing strong signs of growth with business opening nationwide, especially for emerging concepts, which attract consumers with their ephemeral nature and experimental menus,” the report said.
In the U.S., consumers found themselves increasingly interested in art, entertainment and nightlife, Yelp said. This was compared to a decline in interest in shopping, beauty and spas in most states.
The report found that Americans’ changing interests were not uniform across the country. West Virginia saw the biggest increase in arts and entertainment activities, and people there became more interested in museums. Yelp interactions in the state were up 20% compared to a year ago. In Delaware, they were music venues (+41%); and in Iowa, wine tasting rooms (160% more). Illinois residents and visitors were more interested in immersive gaming experiences, as virtual reality centers saw a 76% increase in interest compared to a year ago.
One of the most interesting activities, however, was paint and drink, where patrons are guided through a step-by-step painting lesson while drinking alcohol. Interest in paint and beverage companies was up 17% compared to a year ago, and increased more among the arts and entertainment business categories. Americans were also showing more interest in speakeasies and comedy clubs, both up 15% compared to a year ago.
