food service industry grapples with workforce shortages and supply chain challenges, Yelp data shows that inflation mentions in reviews for food businesses and restaurants have increased by 7% and 5% respectively, compared to Q2 2022 – and even more compared to Q3 2021, up by 31% and 28%. In Q3, consumers are still experiencing acute inflation across various Yelp categories, most noticeably with food businesses, followed by restaurants. Here Food Businesses Saw One of the Largest Increases of Inflationary Experiences in the Past Year, Followed by Restaurants, Beauty, Arts and Entertainment, and Nightlife The Categories Driving Inflation Mentions Vary by Region Categories with the highest increase in mentions of inflationary language in Yelp reviews by region, Q3 2022 vs. ![]() When compared to the previous year, reviews mentioning inflationary experiences jumped up by 22% in Q3 2022. As consumers continue to show increased signs of inflation fatigue, the frequency of inflationary language in Yelp reviews rose by 4% in Q3, compared to the previous quarter. Although it has since decreased, dropping to 8.2% in September, it remains above market forecasts. In June, the annual inflation rate peaked at 9.1%, a 40-year all-time high. ![]() Consumers Increasingly Feel the Impact of Inflation In response, Yelp data also reveals that consumer searches for budget-friendly dining and grocery options are higher than Q3 2021. Yelp data shows that food businesses are seeing one of the largest increases of inflationary experiences compared to Q3 2021, followed by restaurants, then businesses in the categories of beauty and spas, arts and entertainment, nightlife and bars, and hotels and travel. Regionally, the Southwest is experiencing the highest increases in inflation mentions quarter over quarter, while the Midwest is experiencing the highest increase year over year. seeing a year-over-year increase in mentions of inflation in Yelp reviews. Yelp has continued to track the effects of these factors and how consumer behaviors have shifted, finding that in Q3 2022, consumers continue to experience inflation, with every state in the U.S. These disruptions contribute to the rapidly increasing price of goods and services, which in Q3 led consumers to opt for more affordable options. Local businesses and communities now face a new set of challenges in addition to the lingering impacts of the pandemic, from continuing supply chain issues and delays, workforce shortages and reductions, and the highest inflation rate in 40 years. ![]() For more on the methodology for this report, click here.
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