PriceListo recently published a report by Mike Kallenberger, evaluating the effects of the COVID-19 pandemic and how it has affected food businesses, particularly in the United States. Titled “How COVID-19 is Affecting Restaurant Prices,” the report looked at data from PriceListo’s database for a set of five restaurant chains in the fast food, fast-casual, and casual dining categories of food businesses using specific criteria.
The COVID-19 pandemic has affected the world in an unimaginable way, infecting more than 5 million people worldwide. In addition to directly infecting millions of people across the globe, the pandemic has also led to the near-collapse of some businesses due to restrictions like lockdown, put in place to curb the spread of the virus. Consequently, the revenue of businesses has been negatively affected, especially as the purchasing power of consumers has reduced significantly. One of the worst-hit sectors of the economy, particularly in the US, is the restaurant industry. Economist and award-winning writer, Mike Kallenberger, is looking to shed more light on the effect of the pandemic on food businesses in the country.
The report looked at the possible factors holding the lid on restaurant prices. In the report, Mike evaluated the factors responsible for the downward pressure on restaurants’ pricing. Five major players in each of the aforementioned food business categories were considered. The restaurant chains are McDonald's, Burger King, Wendy's, Taco Bell, and Subway in the fast-food category, and Moe's, Panera Bread, Shake Shack, Five Guys, Panda Express in the fast-casual category. Applebee's, Denny's, IHOP, Buffalo Wild Wings, and Red Lobster were considered in the casual dining category.
According to the report, the three categories were in terms of the largest three-month increase in average price as of April. The report also revealed that Fast Casual and Casual Dining had wider swings in price from month to month, compared to fast food, substantiating the claim that Fast Food is the most consistent and budget-friendly restaurant type.
There were only three restaurants on the list that decreased their prices, including McDonald’s, Shake Shack, and Panda Express. Another three restaurants, Taco Bell, Panera Bread, and IHOP held their prices steady. The remaining nine restaurants saw their prices increase.
The report also looked at the performance of five price leaders across the three segments – Subway, Burger King, Panda Express, Moe’s, and Red Lobster. Looking at the trend from January to April, it was noticed that only four chains – Subway, Burger King, Panda Express, and Red Lobster have the marketplace power to sell higher-priced items. It also revealed that their power had been growing in the period under review.
The report from PriceListo by Mike Kallenberger is just what is needed for different stakeholders in the industry to strategize ways of growing their business during and after the COVID-19 pandemic.
For more information about the report and other solutions from PriceListo, please visit - https://www.pricelisto.com.
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