Trends indicate that people are more willing to pay more for better quality goods and services than ever before. Clearly, sophistication is no longer a trait only the wealthy can enjoy.
Orlando, FL -- It used to be that only the rich could afford the finest life had to offer. Thanks to their wealth, they could indulge in expensive cars, enormous homes, elaborate meals and the like.
These days however, the ability to “trade up” -- or pay more for a higher quality of a particular good or service -- seems within everyone’s reach. Even the stereotypically stingy middle class has been stretching its pockets for a chance to experience something that, only a few years earlier, was deemed foreign and out of reach.
And, appropriately enough, nowhere is this trend is more apparent than in the restaurant industry.
“We’re all working more and playing less,” says Aaron Allen, founder and CEO of Quantified Marketing Group, the nation’s largest full-service strategic marketing and public relations firm exclusively focused on the restaurant industry. “The restaurant industry is an easy luxury to fit this lifestyle. Eating out is an indulgence. It’s not that you have to have froufrou frills.”
Authors Michael Silverstein and Neil Fiske already documented the trend in their book “Trading Up: The New American Luxury.” In it, they state there are 47 million households in the country currently possessing incomes of $50,000 or greater. Many of those households have an average size of 2.6, which means a total of 122 million Americans have the means to “trade up.” According to their numbers, that translates to 22 percent, or $400 billion, of the $1.8 trillion consumer products and services purchased annually by the public.
The restaurant industry forms a huge percentage of those figures, Allen notes, especially in mid-sized chains (ex. T.G.I. Friday’s and Applebee’s) that are always looking to one-up their competition with menu items that increase the diner’s sense of value and sophistication.
“You should always look to create a point of difference,” says Allen. “You should always look to include what’s newsworthy about a restaurant, to create points of difference in the food. Everyone’s got grilled chicken pasta, for example, but what can you do that’s different in it? If you can create that higher perception of value, people will come, and they will pay a premium.”
Allen cites trendy Miami restaurant Tantra and Cancun hot spot Glazz as prime examples of the trend’s direction from a high-end perspective. Tantra created the world’s most expensive martini, which sells for approximately $25. The item quickly became one of the restaurant’s most popular items, a fact Allen attributes to the drink’s top-shelf ingredients and the establishment’s stylish atmosphere. Likewise, Glazz, already an upscale Asian eatery, added items like sushi and saketinis to its menu as a means to compliment its stunning décor. The instant it did, Allen says, the restaurant’s sales increased by 30 percent.
But Allen claims the trend can be seen in other restaurants across the market, not just in more exclusive eateries. For example, the most popular dish on the menu of Mel’s Diner, a southwest Florida chain that caters primarily to the money-conscious retirees in the region, also just happens to be the priciest item on the menu -- a $9.99 rib dinner. Why is that? According to Allen, it’s because the dish, which comes with a salad, soup and two side dishes, showcases an undeniable sense of value to the clients.
Just as prevalent is the rapid rise in popularity of quick casual restaurants, the fastest growing segment of the industry. Chains like Nature’s Table and Panera Bread offer casual yet classy environments and menus that turn up the typical fast food offerings -- Terriyaki Chicken Panini instead of a fried chicken sandwich, for example. More important, they offer these items for only a little more than what a fast food restaurant will charge: The typical fast food check is $4, the typical quick casual bill is $8. Hardly a sacrifice for the experience, believes Allen.
“People buy brands that are a reflection of how they see themselves,” adds Allen. “They are looking to indulge themselves and the restaurant industry is one of the best places to do it. Not everyone can indulge in an $80,000 car, but they can indulge in an upgraded meal. The classic example is Starbucks. People are willing to pay five bucks for a decent cup of coffee instead of fifty cents for a poor cup. And they’ve built a cult on Grey Goose vodka. It’s the same as Absolut but it’s twice the price.”
For more information please visit www.quantifiedmarketing.com or www.restaurant-public-relations.com
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Media Contact:
Quantified Marketing Group
407.936.1010
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