Wallet-conscious diners are heading to happy hour for dinner and ordering appetizers instead of entrees as increasing anxiety about affordability slams restaurants nationwide, The Post has learned.
Last month, Ryan Gerding, a marketing executive in Kansas City, Missouri, showed up early for dinner with his wife at Martin City Brewery, a local watering hole. They shared meatball sliders, pretzel bites and chicken wings along with a 2-for-1 beer coupon and a cocktail.
The total bill was $51.31 versus the $75 they have typically spent on dinner, Gerding told The Post.
“It’s a fun thing that we are able to do more of because we are taking advantage of the lower prices during happy hour and because apps don’t cost as much as entrees,” Gerding told The Post.
“When we are at the bars – and sometimes it’s as early as 4 p.m. – we are surprised to see the places packed,” Gerding added.
Appetizer sales across the US this year surged 20% through August – blowing past typical growth in the low-to-mid-single digits, according to Buyer’s Edge, a technology platform that tracks food purchasing by chain restaurants. Sales of entrees were flat versus past growth averaging around 3%.
“At first we thought the 20% was a mistake, because historically we have never seen that kind of a hike in an industry that grows moderately,” said Jim Pazzanese, executive vice president of global strategic procurement for Buyer’s Edge.
The firm’s platform – whose clients include Red Robin, Fatburger, Johnny Rockets, Hurricane Grill & Wings and Ponderosa Steakhouse – tracks more than $74 billion in annual food service spending at 200,000 restaurant locations.
Entree sales are falling as meat prices have soared this year, according to Buyer’s Edge. Meanwhile, demand has soared for mozzarella sticks, pickle chips, egg rolls, cheese curds, jalapeno poppers and cheese bites.
In August, Applebee’s Grill + Bar launched a $15 appetizer called Ultimate Trio with a national TV campaign at the start of the NFL season. Customers can pick three items from a list that includes Boneless Wings, Chicken Wonton Tacos, Brew Pub Pretzels and Waffle Fries.
“We have purposefully introduced products that are appetizers and can be eaten as an entree,” said Ed Doherty, CEO of Doherty Enterprises, which operates more than 100 Applebee’s franchises. “Right now it’s critical to have prices on your menu for the guest who needs the value meal.”
The savings for customers is “significant,” Doherty added, because a steak is $26, a pasta dish is $22 and a salad is $18 at Applebee’s restaurants in New York City. As for restaurant owners, there’s a silver lining, he said.
“It’s building more traffic,” Doherty told The Post. “The health in a restaurant business is transactions. I’d rather have the volume because there is the opportunity to upsell them.”
Even swanky steakhouses are responding to the penny-pinching crowd. Willie Degel, who owns the Uncle Jack’s Steakhouses in Manhattan and Bayside Queens, said about 15% of customers are ordering appetizers instead of a main course and sharing entrees.
Degel, who was the host of Food Network’s “Restaurant Stakeout” reality series, said demand for burgers and sandwiches has surged this year alongside beef prices. Accordingly, its menu has expanded to five options.
For example, the Big Jack Burger and Black Truffle Burger sell for $29 to $39, respectively, including fries. That’s versus steaks that include a $95 rib chop and a $165 porterhouse for two.
“We sell a lot more burgers and steak sandwiches without a doubt,” Degel told The Post. “It’s driving traffic.”
This story originally appeared on NYPost
