Restaurants are now finding that Netflix may be cutting into their profits. Some speculate that the reason for this is because people are spending money on Netflix that would otherwise be used on dining. It’s not only Netflix that is cutting into restaurant profits, but also necessities like cell phones, data plans and the like. So how do restaurateurs combat this trend? Make your restaurant innovative and do something to draw customers in.

Key Takeaways:

• Higher costs lead consumers to look for cheaper options, which they have this year, thanks to lower grocery prices and the proliferation of prepared food at retail.
• Many costs have been rising in recent years. Apple released the iPhone in 2007, just before the recession, and helped unleash the smartphone craze.
• So consumers began buying the devices while also paying for data plans, which can tally well over $100 per month. Netflix began streaming the same year.

“Many costs have been rising in recent years. Apple released the iPhone in 2007, just before the recession, and helped unleash the smartphone craze.”

http://www.nrn.com/sales-trends/netflix-stealing-sales-restaurants