Affluent Consumer Insights - Wealthy Consumers Plan Less Restaurant Spending in New Survey

Spending for dining at upscale restaurants is to befamily restaurants and spending less for wines and
reduced by 54% of the affluent consumers andliquor when dining out.
to be increased by only 2% of the affluentThe survey respondents indicated a negative 12
consumers. The survey respondents indicated amonth outlook for business conditions and
negative 12 month outlook for business conditionspersonal household income. They also reported
and personal household income. Record low levelsdeclines in their net worth, as a result of
of spending for dining out in both casual/familysubstantial declines in the value of their home and
restaurants and upscale restaurants is suggestedtheir investments/savings during the past two
by the most recent survey in a series ofyears. Together, these factors have contributed
twice-yearly studies that began in Spring 2002.to a general attitude toward reducing or deferring
Negative attitudes about the current economyexpenditures in all areas. The intentions to reduce
and the economic outlook for the next 12 monthsexpenses for dining out are consistent with the
are contributing to plans for reducing restaurantoverall mood of the affluent.
expenditures by affluent consumers during theThe survey is representative of the population of
next year, according to the Affluent Marketthe most affluent 11.2 million households in the U.S.
Tracking Study#15 conducted by the Americanthat account for almost 40% of total personal
Affluence Research Center.income and two-thirds of the personal wealth of
In the Spring 2009 survey of the wealthiest 10%all Americans.
of all U.S. households, spending for dining at casualThe 640 men and women included in the national
family restaurants during the next 12 months, insurvey have an average annual household income
comparison to their spending for such items duringof $290,000, an average primary residence value
the past 12 months, is to be reduced by 29% ofof $1.2 million, an average net worth of $3.1
the affluent consumers and to be increased bymillion, and average investable assets of $1.4
only 7% of the affluent consumers. Themillion. This survey of the affluent market has a
remainder (64%) expects to spend the same formaximum margin of error of five percentage
dining at casual/family restaurants during the nextpoints at the 95% confidence level.
year as in the past year.These surveys track how affluent consumers
Spending for dining at upscale restaurants is to beassess current business conditions and their
reduced by 54% of the affluent consumers and12-month outlook for the economy, the stock
to be increased by only 2% of the affluentmarket, personal household income, and their
consumers. The remainder (44%) expects tospending plans for different products and services
spend the same for dining at upscale restaurantsthat include major appliances, home computers,
during the next year as in the past year.furniture/furnishings, home entertainment
To reduce expenses for dining out, the affluentequipment, casual and upscale dining out,
consumers are most likely to eat out lessentertainment, recreation, domestic and
frequently and to dine at less expensive upscaleinternational travel, designer and non-designer
restaurants compared to the prior 12 months.apparel, collectibles, fine jewelry, and political and
Other methods for reducing restaurantcharitable contributions.
expenditures are dining more often at casual