Radio is on the Menu for Restaurants

Author: Annette Malave, SVP/Insights, RAB

With temperatures around the country on this rise, who wants to cook? Dining out or taking out is the way to go.

Sales at drinking and dining establishments continue to rise, reaching $93.6 billion in May based on U.S. Census data and reported by the National Restaurant Association.  Despite increased menu costs, consumers are dining out.

Dining out or taking out also means tipping. Whether sitting at a fine dining restaurant, purchasing takeout at quick serve restaurant or ordering via an app, consumers are being asked to tip at a higher rate. According to Investopedia, “tipflation refers to the increasing amounts of money that people are expected to pay in tips for goods and services rendered.” During the pandemic, consumers began tipping at a higher rate. Results from an April 2024 Talker Research (formerly OnePoll U.S.) survey, the average consumer tips $37.80 per month. That figure projects to $453.60 annually. With businesses incorporating tipping screens at the point of purchase, some consumers are feeling guilty and feel forced into tipping and tipping at a higher rate. The Talker Research survey found that 26% of respondents felt that they are always or often forced to tip higher than they normally would.

Whether it is fine dining or quick serve, establishments should place radio on their menu. Over a tenth of radio listeners splurge when dining out, per data from Provoke Insights. Based on an analysis of a survey of 1,502 adults ages 21-65, conducted by Provoke Insights (a full service market research firm), 11% of radio listeners have spent $300+ on a meal for themselves in the past quarter, despite 84% of radio listeners noticing an increase in menu costs. This may be because radio listeners are more financially secure and have more discretionary income than nonlisteners.

When it comes to tipping, radio listeners are happy to give a gratuity. Based on a seven-point scale, 43% of radio listeners are happy to do so, compared to 37% of nonlisteners. And when they tip, they tip across food and drinking establishments more so than nonlisteners. Seven in 10 radio listeners consistently tip at fine dining restaurants compared to 60% of nonlisteners. Radio listeners are also more apt to tip at bars/nightclubs (45%), fast casual restaurants (36%) and even ice cream/desert shops (18%).

Per Scarborough, radio reaches patrons of various dining establishments:

• 84% of quick serve restaurants
• 85% of any sit-down restaurants
• 87% of steakhouses

Local restaurants would be best served by including broadcast radio within the media campaigns. Radio connects and engages with listeners throughout the day – creating a perfect environment and opportunity for restaurants to share and entice by promoting their various meal options. Radio can drive foot traffic and website traffic.

With higher-than-average ticket sizes and the propensity to tip at all types of dining establishments, connecting with radio listeners is good for business.