Rising Gas Prices Could Disrupt Restaurant Sales Recovery

Higher gas prices are threatening the restaurant industry’s fragile recovery because consumers often cut discretionary spending—like dining out—when fuel costs rise, with research showing that a 50-cent increase in gas prices can reduce consumer spending by about $68 billion.

Restaurants, quick-service chains, convenience stores, and fuel retailers may need to adjust marketing and value messaging as rising transportation costs squeeze household budgets and influence where consumers choose to eat.