As inflation continues to rise, grocery prices are becoming a concern and there are fears of an impending recession. However, Americans seem to be continuing their post-pandemic trend of venturing out and indulging in fine dining and entertainment, despite the high costs.
According to a new report by Yelp, consumer interest in restaurants has remained consistent in the past year when considering certain user behaviors such as viewing business pages and posting photos or reviews. Experts and economists have stated that over the past three years disrupted by the pandemic, Americans have been eager to get out more, and recent spending patterns on dining out reflect this desire.
In May of this year, sales for food services and drinking places in the US saw an 8.0% increase compared to the same time a year ago. While the cost of food had risen by 6.7%, dining out was even more expensive, at 8.3%, according to separate government data.
In March 2023, diners were found to be interested in pricier restaurants, with Yelp reporting that interest in fine dining exceeded the previous year’s levels by almost 20% and pre-pandemic levels by nearly 20%. The most expensive tier, four dollar signs for fine dining restaurants, saw about 20% more activity on Yelp than the previous year, followed by three dollar sign restaurants that saw roughly a 10% rise. On the other hand, options with just one dollar sign saw a 10% drop in engagement from Yelp users.
Yelp Report Shows Pop-up Restaurants and Arts & Entertainment Businesses are Fastest Growing in the U.S.
According to a recent Yelp report, the restaurant industry is on the rise with pop-up restaurants being the fastest-growing businesses in the industry. These restaurants work by sharing temporary spaces with bars and sometimes other restaurants which has seen a 105% spike in business openings. Ramen restaurants follow closely behind with 45% more business openings in the past year than the year prior.
Yelp’s report also indicates that Americans are becoming more interested in arts and entertainment, nightlife, and experiences like immersive-gaming or virtual reality centers. Conversely, consumer interest is declining in shopping, beauty, and spa-related activities.
Interestingly, the changing interests of Americans aren’t uniform across the country. West Virginia, for example, saw the largest increase in Arts and Entertainment activities, with a rise of 20% compared to a year ago. In Delaware, it was music venues (up 41%); in Iowa, wine-tasting rooms (up 160%). Illinois residents showed a greater interest in immersive-gaming experiences with virtual reality centers seeing a rise of 76% compared to a year ago.
One of the hottest activities in the U.S. was paint-and-sip businesses where patrons are guided through a step-by-step painting lesson while drinking alcohol. The interest in this activity was up 17% compared to a year ago, which was the largest increase among arts and entertainment business categories. Americans also showed a renewed interest in speakeasies and comedy clubs, both up over 15% compared to a year ago.
