Technomic Sees Strong, Growing Interest in Restaurant Gift Cards

CHICAGO--(BUSINESS WIRE)--March 21, 2006--Even though gift card programs are still relatively new to the restaurant industry, consumers are quickly adopting them as appealing gift-giving options. Recent consumer research conducted by Technomic found that 35 percent of consumers reported giving restaurant gift cards over the past holiday season, while 43 percent received them.

Both givers and receivers are satisfied: nearly 70 percent of gift-card givers say they were a better choice than regular gifts; among restaurant gift-card recipients, 97 percent hope to receive them again. Of those that gave restaurant gift cards, nearly 40 percent plan to purchase even more of them during the next holiday season.

“Consumer acceptance of gift cards, coupled with a growing hunger for 'experiences' rather than 'things,' create an excellent opportunity for restaurant companies.”

"Spending patterns are changing in ways that support the continued growth of gift cards," says Michael Allenson, Director of Technomic's Center for Consumer Research. "Consumer acceptance of gift cards, coupled with a growing hunger for 'experiences' rather than 'things,' create an excellent opportunity for restaurant companies."

Allenson says the issue is no longer whether restaurants should offer stored-value gift cards, but how to stay ahead of the curve in technology and marketing, expanding programs into other venues and gift-giving occasions, and maximizing the proven benefits of the cards.

These and other findings were initially reported in the January and February issues of American Express Market Brief, a complimentary monthly newsletter produced by Technomic that tracks and interprets chain restaurant trends. To view past issues or to subscribe, visit www.technomic.com.

About Technomic Inc.

Technomic Inc. provides chain restaurants and food supplier clients with the research, insights and strategic consulting support they need to enhance their business strategies, decisions and results. Technomic offers proprietary management consulting solutions and shared-cost, common-interest research.

About Market Brief

Through Market Brief, American Express provides chain restaurants with research-based analysis of key industry developments. Data is collected and analyzed by Technomic, Inc. Past issues of Market Brief are available online at www.technomic.com/operator/amexmarketbriefs.