CHICAGO Nearly one in 10 consumers plans to use the federal government’s economic stimulus checks to indulge in a meal at a nice restaurant, but only 3 percent say the special tax rebates will prompt them to dine out more often, according to a new research report.
The consumer survey by Technomic Inc., the foodservice research and consulting company based here, found that the public is much more likely to save the money or buy groceries than it is to splurge. Thirty-four percent of respondents said they would put the rebate in the bank; 29 percent reported they would use it to pay off credit-card balances; and 23 percent indicated that they would use the windfall to buy necessities. Nine percent said they would earmark the money for a vacation, the same portion who cited a likelihood to “eat at a nice restaurant.” Two percent said the rebate would spur them to spend more when they do dine out.
“Consumers are strapped and have other nondiscretionary priorities with respect to the tax rebate checks they will be receiving,” said Bob Goldin, executive vice president of Technomic. “Unfortunately, it does not appear the restaurant industry will be a beneficiary of the stimulus program.”
Another industry researcher, NPD Group of Port Washington, N.Y., is more optimistic about the checks’ effect.
“If consumers respond as they did in the past, the industry should at the very least enjoy a short-term boost,” said Bonnie Riggs, an analyst for the firm. “While behavior is difficult to predict, operators who aggressively court consumers at this time will be in the best position to reap the benefits.”
When similar rebates were issued in 2001, restaurant traffic markedly increased, according to NPD.
The industry has been hopeful that the stimulus checks would jolt the trade out of a sales slowdown that has coincided with a spike in food costs. Pundits point to the greater portion of household income that now goes to pay for gas, groceries and health care.
The Bush administration proposed that the government try to inject some vigor into the economy by giving taxpayers a rebate that averages several hundred dollars each. Single taxpayers are expected to receive about $600 each, and couples filing jointly are projected to receive about $1,200. Families could qualify for another $300 per child under the age of 17. Distribution of the rebates began this month and is expected to continue into July.