February 28, 2011

THE RECESSION GAVE THEM AN EXCUSE TO AVOID THOSE AWFUL RESTAURANTS::

Rich Americans flock to fast food (Jessica Dickler, February 28, 2011, CNN)

In the fourth quarter of 2010, spending on fast food increased 4% among American Express' most affluent customers, or the top 10% of spenders, the AmEx data said. Meanwhile, spending on casual dining decreased by 4%.

"As the economy continues to recover, affluent consumers are showing restraint in spending in some areas, but not others," explained Ed Jay, senior vice president of American Express Business Insights.

Jay says that affluent consumers exhibited a "return to value" during the recession and are still demonstrating frugal behaviors where possible, like spending more at fast-food restaurants.

"As wealthy consumers scaled back on consumption overall they started to go to more value or price oriented restaurants, and frankly chains," added Milton Pedraza, the CEO of the Luxury Institute, which tracks spending among wealthy consumers with a minimum annual income of $150,000.

"No one will do without their iPhone or iPad, and very few people want to forgo travel, but there are other categories that are not priorities," he said. Particularly when it comes to dining, "people have been making trade offs."

Meanwhile, popular economical chains like McDonald's are lovin' it.

Posted by Orrin Judd at February 28, 2011 8:53 PM
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