UPDATE: Diners across the United States are flocking to happy hour, opting for appetizers over entrees as rising costs hit restaurants hard. This shift is driven by increasing affordability concerns, with many patrons choosing to dine out earlier in the day to take advantage of lower prices.
Just last month, marketing executive Ryan Gerding and his wife visited Martin City Brewery in Kansas City, Missouri, where they spent only $51.31 on appetizers like meatball sliders and chicken wings, compared to their usual dinner bill of around $75. “It’s a fun thing that we are able to do more of because we are taking advantage of the lower prices during happy hour,” Gerding stated. “We are surprised to see the places packed, sometimes as early as 4 p.m..”
According to new data from Buyer’s Edge, appetizer sales have surged by 20% through August this year, significantly outpacing the typical growth of low-to-mid single digits. In contrast, entree sales have remained flat, a stark shift from historical averages of around 3% growth. “At first, we thought the 20% was a mistake because we have never seen that kind of hike in an industry that grows moderately,” remarked Jim Pazzanese, executive vice president of global strategic procurement for Buyer’s Edge.
As meat prices soar, diners are increasingly seeking budget-friendly options. Popular appetizers include mozzarella sticks, pickle chips, and jalapeno poppers. In response, restaurants like Applebee’s Grill + Bar have adapted their menus. In August, the chain launched its $15 Ultimate Trio appetizer, which features a selection of items including Boneless Wings and Waffle Fries, coinciding with the start of the NFL season.
Ed Doherty, CEO of Doherty Enterprises, which operates over 100 Applebee’s locations, emphasized the importance of value meals. “Right now it’s critical to have prices on your menu for the guest who needs the value meal,” he stated. With steak prices reaching $26 and pasta dishes at $22, the savings for customers are substantial.
Even high-end steakhouses are feeling the impact. Willie Degel, owner of Uncle Jack’s Steakhouses in Manhattan and Bayside Queens, reported that around 15% of diners are now choosing appetizers over traditional main courses. “We sell a lot more burgers and steak sandwiches without a doubt,” Degel noted, as demand for budget-friendly items rises alongside beef prices.
The restaurant industry is witnessing a significant shift as consumers prioritize affordability. This trend is not only changing dining habits but also reshaping menu offerings across the board. As more diners seek out budget-friendly alternatives, restaurants are adapting quickly to meet this evolving demand.
The next few months will be crucial for the restaurant sector as they continue to navigate these economic challenges. The ongoing trend towards appetizers could redefine dining experiences and menus nationwide.
