July 28th, 2008, 3:00 am by Kristine Lu for the Orange County Register
More consumers are turning to brown-bagging to save money, according to a new study by market research company NPD.
According to the NPD’s study “How Brown-Bagging Is Affecting Foodservice Lunch,” weekday lunches brought from home reached a new high last year, increasing from 35 bagged lunches per capita in 2006 to 38 in 2007. Though brown-bag lunches have generally increased over the last few years, studies show that adult males are still most frequently bringing their lunches, as are white-collar professionals with mid- to high-incomes. The most frequent brown-baggers pack their lunch an average of three times per week.
The news is another blow to the restaurant industry, which is suffering due to a downturn in sales.
Nearly half of the consumers who usually visit restaurants for lunch said they were visiting less often, the NPD study shows. As a result, restaurants are reporting declines in sales due to less people buying lunches to bring back to the workplace.
Fast-food chains, whose lunch-time sales often represent 80 percent of their total revenue, are especially vulnerable to this new brown-bagging trend, NPD said.
So, what factors are forcing more and more Americans to find alternative ways to eat lunch these days?
NPD Vice President Harry Balzer cites many reasons for the newfound popularity in brown-bagging.
“Certainly the economy, growing unemployment, the erosion of disposable personal income, slow-down in number of women entering the workforce and more telecommuting options are also influencing consumers’ lunchtime behaviors,” he said.
Consumers cite financial concerns as their top reason for brown-bagging, followed closely by health and nutrition, convenience, taste, diet, quality and environmental concerns.
“Consumers are definitely in a cost-cutting mode,” says Balzer. “And, make no mistake about it, making lunch at home and carrying it to work saves money. In addition, consumers can control what and how much of it is in the bag.”
