Meat + Poultry - July 2016 - 8

C O M M E N TA R Y

Just rewards
As a 50-something parent with one high school student
about to transition to college and a younger sibling just
a few years behind, I have a newfound appreciation for
how personal financial perception evolves based on what
is looming around the corner of each life phase. All the
while, the mirage of retirement serves as a fuzzy backdrop
that seemingly gets more difficult to discern with each
passing day, week and month.
Committing to living by a written budget for the past
year has caused me to look at
food purchases and dining out in a
whole new light. For the baconearners in my home, the attention
paid to saving versus spending
has peaked, and how the coveted
leftover money will be spent after
expenses and savings have been
accounted for each month has
become more important than ever.
What used to be incidental
indulgences like enjoying a
good meal at a restaurant are no
longer taken for granted and have
become more of a rare reward
More consumers for our successfully living by
the almighty budget. And with
are spending
the hope that the crunch of the
discretionary
recession is in the rear-view
mirror, it appears my household
dollars on
experiences over is more typical than I would have
thought. As more consumers
material goods. are willing to live more fiscally
focused lives, it is a positive sign
for food businesses that more of them are rewarding
themselves with a dinner out or even by cooking out
steaks versus more affordable alternatives. Consumers
like me are choosing experiential over the material when it
comes to discretionary spending.
Apparently still shell shocked from the 2008 economic
downturn and subsequent recession, frugality balanced
with indulgence seems to be a new reality for many US
consumers.

8

MEAT+ POULTRY | 07.16 | www.meatpoultry.com

According to some recent research findings, fiscal
responsibility in the aftermath of the recession is paying
off among consumers, many of whom are regaining
traction. A Bankrate survey of 1,000 Americans in May
concluded that the Bankrate Financial Security Index
reached the second-highest point since 2010. Bankrate
Senior Vice President, Greg McBride recently told CNBC.
com, "There is a definite trend of improvement," referring
to consumers' growing financial confidence in the years
since the Great Recession. Even better, 30 percent of
respondents reported their net worth is higher in 2016
compared to one year ago.
As the financial dust settles for many consumers and
discretionary spending slowly emerges from the recession
rubble, the battle for share of wallet ensues, and eating
out continues to be an indulgence at the top of many
consumers' wish lists.
According to Mintel's recently released "American
Lifestyles" report, consumers are striving "to strike a
balance between prudent spending and still enjoying their
hard-earned dollars." Similar to Bankrate, Mintel reports
that financial optimism is behind an uptick in discretionary
spending, with 44 percent of Americans describing their
2016 financial situations as "healthy," up from 2015 (37
percent) and 2013 (33 percent). Mintel reports more
consumers are opting to spend less on clothing, footwear
and accessories, instead "spending on experiences over
material goods." Signs of splurging on vacations and
tourism as well as in the leisure/entertainment category
are coming back to life.
"Consumers are meeting their financial obligations
by saving...and paying down debt...while allowing
themselves modest luxuries," according to Mintel.
Apparently the mentality of getting the bills and
savings out of the way to make room for the most subtle
of indulgences isn't as foreign of a concept as I had
once thought. Mintel summarizes that when it comes to
"spending on experiential categories, consumers choose
dining out, entertainment and gifts for the family as the
most pouluar ways to spend their extra cash after all the
bills are paid."
J O E L C R E WS, E D I TO R | j c r e w s @ s o s l a n d.c o m
http://www.meatpoultry.com
Meat + Poultry - July 2016

Table of Contents for the Digital Edition of Meat + Poultry - July 2016
