Report: Consumers Cut Back, Chase Deals

Consumers are rethinking how they spend, and franchise brands are feeling the shift.

A new national survey from Channel Media Group found that economic uncertainty is pushing workers to cut back on dining out and become more strategic in everyday purchases. Nearly 68% of respondents said they are dining out less frequently, and 66% now consider themselves active deal seekers.

More than 43% of respondents described their economic outlook as pessimistic compared with just 20% who said they feel optimistic. The result is a consumer base that is increasingly cautious, selective, and price focused.

"Consumers aren't just cautious; they're strategic," said Caitlin McCarthy, founder and president of Channel Media Group. "Brands that meet shoppers with genuine value, whether through pricing or well-timed promotions, will earn not just a transaction, but trust."

Price is now the leading driver of brand switching. It was cited by 46% of respondents, far ahead of product quality at 19% and limited-time offers at 15%. Discounts and coupons are also the top triggers for unplanned purchases with nearly half of respondents saying a deal would influence their decision.

Promotions are proving more effective than other forms of outreach. Half of respondents said coupons and special offers are the most influential media on workweek purchases, outperforming word-of-mouth, social media, and digital advertising combined.

At the point of purchase, in-person counter ordering (38%) and mobile apps (35%) remain the preferred channels, suggesting consumers are still blending traditional and digital experiences while prioritizing value.

In February, Channel Media Group worked with At-Work Freebies to conduct a national consumer spending survey of 1,364 business administrators across multiple industries. Click here for the full report.