Article by Prasanna Dhore, chief data officer at Fiserv
How to Grow your
Business in a Ramen
Noodle Economy
MIND YOUR BUSINESS
(BPT) - Ramen noodles have become a reliable barometer of the economy. Think about it: When the going gets tough, noodle sales rise as consumers turn to goods that help them stretch the power of their dollar. And how is the economy performing right now? Noodle sales have been strong for months, with consumers trading down on purchases to offset the rising costs of food and other essential goods.
These kinds of insights on consumer spending are critical for business success, as they highlight key trends that can help small business owners, and the companies that serve them, chart the best path for growth.
For those looking for information that is a bit more clear cut than ramen noodle sales, the Fiserv Small Business Index is a simple tool providing data at the national
state and industry levels by analyzing consumer transaction data (card, cash and check) at approximately two million U.S. small businesses.
What's the data showing?
Here are some insights from the index:
* The pace of consumer spending at small businesses accelerated in the first quarter of 2024, growing 3.4% compared to 2023
* Foot traffic is also up considerably, growing 5.3%
However, at the same time, average transaction sizes are decreasing. In other words, while total spending and transactions are up, consumers are spending 2.4% less each time they're