August 3, 2022
C-Suite Wednesday – Yelp Says Growth in Consumer Spending is Slowing with Inflation
“If the last few years have demonstrated anything it’s the resilience of local businesses, people and communities in the U.S. and across the world. When given the opportunity communities have come together to support and uplift one another under challenging circumstances. However, the challenges facing local economies have been relentless,” reads a Yelp Economic Average report. “In Q2 2022, Yelp data shows consumers are experiencing inflation at record rates, with some states experiencing inflation more than others.”
Here are the facts:
• The annual inflation rate in the U.S. increased to 9.1% in June 2022, a 40-year high.
• Mentions of inflationary language increased by 28% in the second quarter of 2022 when compared to the same period in 2021.
• Mentions of inflation increased 7% from the first quarter of 2022.
• 35 states have seen more than a 25% increase in mentions of inflation.
• Massachusetts, New York, Maine, Washington D.C., New Jersey, and New Hampshire are some of the to states with the highest inflation experiences.
• South Dakota, Montana, Idaho, Arkansas, and Nevada have the highest year-over-year increase in inflation experiences.
• Although consumer spending remains strong, consumer spending growth slowed. More people are searching for inexpensive options, and fewer people are searching for expensive options.
• Customers experienced inflation the most at casual restaurants and food businesses with reviews mentioning inflation going up 38% and 36%, respectively.
• Inflation in arts and entertainment businesses is up 33%.
• Nightlife businesses (30%), event services (22%), and hotels and travel businesses (20%) follow as the most inflationary categories based on Yelp reviews.
• Consumers are seeing the size or quantity of their goods shrink, referring to it as “shrinkflation”, and frequently mention it at restaurants serving more affordable offerings like hot dogs, burgers, and pizza.
Yelp Economic Average Report