New research from consumer insights platform Zappi was recenty released, and it surveyed 1,000 consumers about the economic impact of tariffs and their behavioral responses to rising prices.
Just 1 in 5 consumers (20%) feel ready to absorb the resulting price increases from tariffs, and nearly one-third (31%) say they’re not prepared at all. More than half (55%) of consumers say they are worried about tariffs, and only 34% believe that tariffs are good for the United States economy.
Perception plays a huge role in influencing consumers' feelings about tariffs as 70% believe that tariffs increase the price of everyday goods, and 63% of those who follow trade news daily say they’re worried about tariffs.
These perceptions have already led to changes in consumers' behavior. 91% are already making tradeoffs to manage rising prices.
Tariffs Affect Consumer Behavior in the Hospitality Industry
Some of those behavior changes are directly affecting the bar and restaurant industry. Nearly half of those surveyed said they’re cooking at home more often (49%) and ordering less takeout (44%).
They are also more price sensitive. When asked at what point they would no longer buy their favorite products based on category, the survey found a 5–10% price increase is enough to change behavior in most categories. In fact, more than half of consumers (56%) would stop purchasing snacks, fast food, and wine and spirits if prices rose by just 10%.
Beverages: When it comes to beverages, only 24% say they’d keep buying them no matter the price increase, while 29% said they'd stop at just a 5% increase, and a quarter (25%) would stop at a 10% increase.
Fast Food: Consumers also have very little tolerance for increases in the fast food industry. 59% of consumers say they’d stop buying at a 10% price increase or less.
Wine & Spirits: When it comes to alcohol, the price increase threshold is also low. 41% of consumers would stop buying after just a 5% increase, while only 15% would continue buying no matter the increase.
All of this signals potential headwinds for the on-premise, where discretionary spending is more easily cut. The Zappi report suggested that venues consider how to justify price hikes or shift messaging to highlight value and necessity.
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