How Inflation Factors Into State of Business Dining Spend Analysis

A Deeper Dive Into Business vs. Consumer Dining Growth

Dinova’s latest State of Business Dining Report revealed promising trends in business travel and dining spending. Bolstered by record-breaking business travel in 2024—expected to drive $245B globally on food and beverage spend globally, according to the Global Business Travel Association—Dinova’s corporate cardholders spent 14% more on dining between Q2 2023 and Q2 2024. Technomic’s foodservice data showed a 4% increase in consumer spending during the same period. 

Food-away-from-home price inflation does factor into these increases. Both Dinova and Technomic’s dining spend data are reported in nominal (current) dollars and not adjusted for inflation. A closer look reveals that, even as higher year-over-year restaurant prices inflate dining sales numbers, business dining growth is still outpacing consumer sales growth:

• The USDA predicts a 4.1% increase in food-away-from-home prices in 2024.
• Adjusted for 4.1% inflation, business dining spend outpaced food-away-from-home inflation by about 10% while consumer spend remained flat.

This is encouraging news for restaurants facing tough market conditions and negative consumer sentiment. Currently, 41% of consumers expect to reduce their restaurant visits, while 68% prefer grocery store food, as food-away-from-home inflation is 4 points higher than food at home.

While deals and discounts are largely driving the recent bounce-back in consumer foot traffic at some chains, business diners are far less price-sensitive and spend about 50% more per check on average. The opportunity to benefit from increased business travel and dining is not limited to upscale or full-service establishments; business dining spending is fairly evenly split between full-service and limited-service restaurants.

Download the Fall 2024 State of Dining Report for more insights, including a breakdown of business dining data by restaurant category and an exclusive look at the different types of business travelers and how they make dining decisions.