McDonald’s, the world’s largest hamburger chain, has announced a global sales increase of 7.1% for the third quarter despite the recent economic turmoil. The strong results have led some, including Chief Executive Jim Skinner, to label the fast-food giant as ‘recession-resistant’. With such strong results it is hard to dispute the claim, although one suspects that any further weakening in the global economic climate would have begin to have some impact. For starters, it is... ...Read more »

Woolworths CEO Michael Luscombe has told of Woolworths’ lack of belief in recessions, as the country’s largest supermarket chain continues to head toward their ambitious growth targets. “At Woolworths, we don’t believe in recession and we never have,” he said at the Queensland University of Technology Business Leaders’ Forum in Brisbane yesterday. “Instead of thinking how do we stop spending, how do we stop hiring, how do we shed people? We are actually thinking... ...Read more »

UK retailer Waitrose has seen demand for ‘restaurant-style foods’ soar as rising costs put greater strains on household spending. Sales of nibbles - from olives and dips to gourmet sharing dishes - are up 53% year on year. And sales of the supermarket’s ‘As Good As Going Out’ range of prepared meals have risen by 42% as some customers shun restaurant meals to stay at home. Sales of Champagne are up by a healthy 10% compared with 2007, indicating consumers are not willing to... ...Read more »

The economic downturn in America has led to a number of initiatives from McDonald’s seeking to lure customers, but the strategies now seem to be frustrating some franchisees. US comparable sales for the company rose 4.3% in May as their promotions, which included providing a small menu of items at $1 and the use of giveaways, provided steady growth. Giveaways have so far included a two-day burrito giveaway and free coffee on Mondays in some areas. Franchisees dealing with rising costs,... ...Read more »

The US restaurant industry is taking a hit as economic struggles plague the country. New consumer research from Mintel reveals that 54% of people who dine out regularly are restricting their restaurant spending because of economic worries. Rising gas and food prices, home foreclosures and a fear of recession have caused many Americans to curb out-to-eat spending. Seventy per cent of those attempting to cut back are saving money by going out to eat less, rather than by choosing cheaper... ...Read more »

Despite the traditional post-budget bounce, Australian consumer sentiment is still at worrying levels. The Westpac-Melbourne institute index of consumer sentiment, released today, rose to 89.8 index points from 87.4 points in April, a rise of 2.7 per cent. The improvement is considered minimal in light of a 7.5 per cent increase after last year’s budget, coupled with the fact that the figure last month was the lowest recorded for 15 years. The limited retreat from April’s low... ...Read more »

With concerns of an economic slowdown in Australia due to worries about the financial state of the US, rising interest rates and spiralling inflation, restaurateurs could be forgiven for thinking tough times are about to take hold. As the average restaurant meal costs almost three times more than a home-cooked meal it would be expected that in times of financial concern the public may shy away from restaurants. An economic slowdown or even a dreaded recession, however, is not usually as... ...Read more »

Consumer confidence has fallen further in the past month according to the Westpac-Melbourne Institute index of consumer sentiment released today. The index is at 15 year lows and indicates that the interest rate rises and global economic concerns are now starting to unsettle consumers. With restaurant sales falling by .1% last month, the weakest result for almost two and a half years, restaurateurs and cafe owners may have cause for concern as consumers continue to look at ways to cut back their... ...Read more »