Restaurants are reviving so-called ‘recession specials’ to lure cash-strapped Americans — but experts warn it is a grim omen for the US economy.
Once a fixture after the 2008 financial crisis, these deals are making a comeback as eateries scramble to entice diners worried about rising prices, stagnant wages, and economic uncertainty.
The return of budget-friendly offerings underscores the tension between a roaring stock market and consumers increasingly cautious about their bank balances.
Fewer dollars circulating in the economy can slow overall growth.
Across the country, restaurants and fast-food chains are rolling out low-cost options, sometimes even labeling them explicitly as ‘recession specials.’
Clever Blend, a coffee shop in Brooklyn, New York is currently advertising a $6 gelato and espresso ‘recession special,’ CNBC reported.
San Francisco-based burger chain Super Duper is also offering a ‘Recession Burger’ deal that includes a burger, fries and beverage for $10.
‘The one thing that didn’t get the inflation memo,’ Super Duper wrote in a post about the deal.
A coffee shop in Brooklyn is currently advertising a $6 gelato and espresso ‘recession special’
‘Inflation has kind of been going on, and we figured it’s a nice offer for a short amount of time for our guests,’ Ed Onas, Super Duper’s vice president of operations told CNBC.
However, the deal has become so successful it will now be added to Super Duper’s menu going forwards, according to the publication.
Consumer confidence was down 13.7 percent in August compared to the same time last year, according to the closely-watched University of Michigan consumer sentiment survey. That means people are feeling much more worried about the economy, their jobs, and their finances than they did a year ago.
‘What’s very clear from the consumer sentiment data is that consumers are broadly bracing for a slowdown in the economy and a deterioration — not just with inflation, expecting inflation to get worse — but they’re also expecting businesses conditions to deteriorate,’ Joanne Hsu, director of the survey said of the most recent findings.
‘They’re expecting labor markets to weaken and unemployment rates to go up,’ she explained.
‘What you’re seeing with these businesses could be a reaction to that.’
Companies have already announced more than 800,000 job cuts this year alone, the highest since the pandemic upended the economy in 2020.
Layoffs are up 140 percent from a year ago, according to a report from career advice firm Challenger, Gray & Christmas.
Ed Onas, Super Duper’s vice president of operations said the burger deal has been popular
Families are increasingly conscious of the cost of dining out
Analysts found that the biggest impact on job losses this year was the relentless march of AI and the knock-on effects of Trump’s tariff policies.
‘AI was cited for over 10,000 cuts last month, and tariff concerns have impacted nearly 6,000 jobs this year,’ report author and labor expert Andrew Challenger said.
Most jobs have been cut in the tech industry, where 89,251 were lost in the first seven months of the year.
Among the tech companies slashing the wage bill is Amazon where CEO Andy Jassy said he plans to reduce the company’s corporate workforce as AI will make certain roles redundant.
‘As we roll out more generative AI and agents, it should change the way our work is done,’ he told employees in an internal memo.
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Popular 2008-era restaurant deals make a comeback… sparking fears of an economic downturn