Givex's Annual Survey: Impact of Rising Menu Prices and AI on Canadian Dining Behaviours and Attitudes

With restaurant prices rising, more Canadians are turning to promotions, coupons, and loyalty programs 

TORONTO, May 9, 2024 /CNW/ - Givex Corp. ("Givex") (TSX: GIVX) (OTCQX: GIVXF), a cloud-based global customer engagement and business insights platform, today released its annual Givex 2024 Consumer Survey. The findings highlight the shifting dining habits of more than 1,500 Canadians and offer insights into dining motivations, loyalty program perceptions, and comfort with the burgeoning presence of AI in the restaurant industry.

According to the survey, conducted in April 2024, the majority (82%) of Canadian diners are finding it more challenging to dine out this year owing to increased menu prices. The report underscores a noticeable shift in consumer behaviour, with nearly half (49%) of Canadians reporting they're dining out at restaurants less this year than last year—a significant increase from 35% in 2023. These trends persist across all demographic groups, emphasizing the widespread impact of economic pressures on Canadians' dining choices.

Meanwhile, restaurants are incorporating artificial intelligence (AI) technology into the guest experience–for instance, some are using AI-powered online order recommendations based on a customer's previous orders and preferences. AI is reshaping the foodservice industry, and the nation is divided about how it feels. A nearly even split within the public sentiment illustrates both optimism and reservation, with almost half (48%) of Canadians expressing comfort towards AI's growing role in their dining experiences.

"Amidst digital transformation and inflationary pressures, our survey reveals the driving factors behind dining decisions and emphasizes the vital role of value-centric loyalty programs and promotions for merchants," stated Mo Chaar, Chief Commercial Officer of Givex. "There's been a noticeable shift in consumer dining habits across Canada. As diners grow more discerning, it's more important than ever before for restaurant operators to attract and retain customers. At Givex, we're harnessing cutting-edge AI technologies to help businesses curate personalized messaging, drive customer engagement, make data-driven decisions, and reward guests for dining at their establishment."

Additional findings from the Givex 2024 Consumer Survey include:

Dining Motivations and Trends

• Canadians have reduced the frequency of dining out, with 49% dining out less often compared to 2023.
  • This percentage increases to 52% among Canadians aged 18-34, marking a 79% surge compared to the prior year (29% in 2023).
  • Rising prices are impacting everyone. Of those earning $100,000+ household income, 80% said menu prices have made it challenging for them to dine out (compared to 85% of those earning $50,000 or less).
• Despite the reduced frequency of Canadians choosing to dine out this year, four-in-five Canadians say incentives such as BOGO promotions (80%) and coupons/discounts (77%) make them more likely to dine out at a restaurant.
• 48% of Canadians are also ordering less delivery compared to 2023.
  • This change is accompanied by 59% of Canadians opting to cook more at home—a figure that rises to 64% among young Canadians.

Loyalty programs

• The role of loyalty programs is pronounced; 57% of Canadians find them appealing for dining purposes, with preference intensifying among younger Canadians.
  • With rising menu prices, loyalty programs might be a win-win solution for restaurant operators and consumers: 44% of Canadians agree they're more likely to order takeout/delivery if a restaurant offers a loyalty rewards program.
• As food prices continue to rise, grocery loyalty programs are becoming increasingly important to consumers.
  • 62% of Canadians rank grocery rewards as the single-most valuable type of loyalty program (up from 57% in 2023), widely outpacing any other category.
• The average Canadian is a member of four loyalty programs and the vast majority (97%) say they use rewards or points from a loyalty program when making a purchase, with 42% making a purchase at least once per month.

Restaurant Technology

• While feelings about the incorporation of AI in the dining experience are divided, younger Canadians (aged 18-34) show a higher level of comfort, with 59% expressing comfort with using AI in restaurants (in contrast to only 40% of individuals aged 55 and above).

The comprehensive insights from this annual survey empower restaurateurs to adapt to changing consumer behaviour, emphasizing the importance of promotions, rewarding loyalty programs, and strategic incorporation of technology. Givex is committed to helping businesses navigate the evolving landscape through innovative solutions.

For more information about Givex, please visit www.givex.com.

About Givex
The world is changing. Givex is ready. Since 1999, Givex has provided technology solutions that unleash the full potential of engagement, creating and cultivating powerful connections that unite brands and customers. With a global footprint of 132,000+ active locations across more than 100 countries, Givex unleashes strategic insights, empowering brands through reliable technology and exceptional support. Givex's integrated end-to-end management solution provides Gift Cards, GivexPOS, Loyalty Programs, and more, creating growth opportunities for businesses of all sizes and industries. Learn more about how to streamline workflows, tackle complex challenges and transform data into actionable insights at www.givex.com.

SOURCE Givex Corporation

Media Contact, Logan Findlay, Talk Shop Media, [email protected], 6040-440-8999