2024-10-14 06:15:00
The results of the current FOOD Barometer survey by Edenred, the leading provider of digital meal vouchers, are available. This year, exciting differences between the generations are emerging: Younger employees are suffering particularly badly from the effects of inflation. While they need to save in many areas, food vouchers play a crucial role in easing their daily expenses. This age group in particular uses food subsidies more intensively than older generations, as they provide important support and help ensure a healthy diet. However, the current tax allowances are too low.
Who saves where and to what extent? As part of Edenred’s so-called FOOD program, which is celebrating its fifteenth anniversary this year, 2,772 users across Austria of digital food and grocery vouchers, which they receive as a tax-free benefit from their employers, were asked about their eating and consumption habits. The study took place in 22 countries worldwide. A total of 49,990 users and 1,491 restaurants were surveyed.
With a view to Austria, the results of the FOOD Barometer study show “sometimes striking differences between the age groups“, reports Christoph MonscheinManaging Director of Edenred Austria, at the presentation of the study.
Young workers expect prices to rise in all areas
The most striking result: “Our study results clearly show that the youngest employees are the most pessimistic about the future“says Monschein. Compared to other age groups, a disproportionately large number of 18 to 24-year-olds expect prices to rise in the coming months – in all areas of life: 60 percent for food, 56 percent for housing, 52 percent for catering, 48 percent for energy, 44 percent for tourism, 42 percent for transport, 35 percent for technology, 27 percent for culture and 23 percent for clothing.
Young and old are burdened differently by inflation
Inflation remains a dominant issue across all age groups. Respondents tend to save more compared to the previous year on clothing (87 percent in 2024 versus 85 percent in 2023), travel (84 percent in 2024 versus 82 percent in 2023) and on restaurant visits (84 percent in 2024 versus 82 percent in 2023). The supply side of the market is also feeling this. According to current statistics from KSV1870, insolvencies in the catering and accommodation industry have recently increased by almost 15 percent and are therefore above average. However, younger employees seem to be particularly suffering from inflation and its aftermath and are increasingly making savings.
„Purchasing power obviously increases with age. Ideally, you have already built up a nice financial cushion, have a good salary and the children are out of the house. Restrictions on consumer behavior are not as impactful here as they were when we were younger“, explains Monschein.
Food allowance for young employees used up at the end of the month
Accordingly, young employed people show significantly different usage behavior when it comes to meal vouchers. The Edenred study shows: “The younger the employees are, the sooner the food allowance will be used up at the end of the month“, says Monschein. 72 percent of 18 to 24 year olds, compared to 46 percent of 55 to 65 year olds, no longer have any credit at the end of the month.
For Monschein, these figures are understandable given the constantly rising costs. According to surveys by Statista, Austrians’ monthly spending on food has almost doubled since 1995 and now amounts to an average of 220.60 euros per household. For 12 percent of the 18 to 24 year olds surveyed, spending on food accounts for more than 40 percent of their monthly budget, while in the oldest age group it is only 5 percent.
In this respect, it is not surprising that 94 percent of boys see the meal allowance as a practical lunch solution that improves nutritional quality (65 percent) and reduces stress (75 percent). “A not entirely insignificant finding in view of the current developments on the labor market, where the well-being of employees is increasingly important“, Monschein points out and emphasizes: “The future belongs to the young, we must not ignore that.“
Current tax allowances for food subsidies are too low
The problem with this: “The average transaction amount per payment with the digital meal voucher product ‘Edenred Restaurant’ for the year 2024 so far is 16.20 euros. This is twice as much as the maximum possible daily tax-free allowance“, explains Monschein. Since the current amounts have no longer corresponded to the real cost of food for a long time, Edenred is calling for the Austrian legislature to increase the tax allowances.
Food subsidies have an impact on nutritional quality
The effects on health should not be underestimated either. Two scenarios that Edenred asks in its annual surveys show particular continuity in response behavior – also with a view to the international results of the FOOD Barometer study, which was carried out in a total of 22 countries: If the food subsidy were to be doubled, the quality of the meals would also be doubled improve. The second scenario concerns the complete elimination of the food subsidy, which would be associated with a poorer diet and fewer visits to restaurants.
Both aspects are also supported by this year’s survey. Compared to older employees, a doubling of the meal allowance, especially for the youngest age group, would lead to an increase in the quality of meals (86 percent), more lunch being eaten (48 percent), the monthly credit being sufficient (80 percent) and Food orders are placed more frequently (28 percent). Without a food subsidy, the 18 to 24 year old age group would eat significantly worse compared to other age groups (45 percent) and go to restaurants less often (67 percent) or order other dishes (41 percent).
Meal vouchers as an important benefit for younger generations
„The results of this year’s FOOD Barometer study offer an extremely exciting insight into generational differences that absolutely need to be taken into account in the modern working world“, concludes Monschein. Tax-free meal vouchers are an important benefit, especially for younger generations. This finding is also relevant for companies that want to recruit young talent and retain them in the long term. Meal subsidies are a key differentiator in the labor market – especially for starting salaries and for apprentices.
Further information is available at www.edenred.at/food-programm available.
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