News

Gas prices hurt restaurant spending

August 31, 2005

CHICAGO — It appears rising gas prices are finally taking a toll on consumer restaurant spending.

According to a recent survey conducted by restaurant industry research firm Technomic, roughly 18 percent of consumers have reduced their spending in quick-service restaurants because of higher fuel costs; 19 percent are cutting back spending at full-service restaurants.

"It appears that the threshold has been reached where consumers are feeling the pinch of higher gas prices and are beginning to reduce their restaurant spending," said Ron Paul, president of Technomic Inc. "We are also seeing softness in restaurant same-store sales, which we track monthly, further validating a reduction in consumer spending."