---
title: "What Is Post-Pandemic “Revenge Spending,” and What Does it Mean for Business Owners?"
url: https://burnaze.com/article/b637e355-7f76-4e18-85b3-2ca8125e9498
source: "1851 Franchise"
original_url: https://1851franchise.com/what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707
category: "General"
published: 2021-05-11T16:11:00.000Z
modified: 2026-11-01T02:25:52.167Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/9363f90381827f0b833c630a1416d4882.jpg
---

# What Is Post-Pandemic “Revenge Spending,” and What Does it Mean for Business Owners?

**TL;DR:** Consumers are expected to engage in 'revenge spending' after COVID-19 lockdowns, investing in experiences they were deprived of during the pandemic, with businesses anticipating a significant rebound in consumer spending. The US is projected to see a surge in revenge spending, similar to what was seen in China last April, with a surge in retail sales.

*originally published in 1851 Franchise on 2021-05-11. [Read the original](https://1851franchise.com/what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707).*

## Story

As COVID-19 lockdown memories begin to fade, consumers are ready to invest their time — and money — in experiences they were deprived of during the pandemic. According to Bloomberg Economics, Americans saved an estimated $1.7 trillion since the beginning of the pandemic through January, and businesses are expecting a significant rebound in consumer “revenge spending” over the next few months.

The term “revenge spending” gained popularity in China last April when the country began to return to normal after its early experience with the virus. According to Bloomberg, the result was a surge in retail sales. U.S. jeweler Tiffany & Co.’s China sales surged 90% in May compared to the previous year, and Hermes, the French luxury label known for its $10,000 handbags, raked in $2.7 million in one day from a store reopening in Guangzhou.

The U.S.’s projected surge in revenge spending comes as nationwide worker shortages continue to frustrate restaurant owners eager to take advantage of pent-up demand for dining out. Although a recent Morning Consult study revealed 60% of consumers are comfortable dining out as of late April, restaurants are struggling to find workers to meet the demand. One McDonald’s franchisee, for example, is offering applicants $50 just to interview.

According to a recent Franchising.com article, businesses will have to “consistently deliver superior customer experiences and a high level of employee engagement” in order to capitalize on the revenge spending wave. The article also reminds business owners that “boosting your customer retention rate by as little as 5% can increase your profits anywhere from 25% to 95%,” meaning the more a business invests in its customer service skills, the more happy and loyal customers it will have.

## Entities

- Franchising.com (publication)
- 1851 Franchise (publication)
- General (sector)
- McDonald's (company)
- Bloomberg (company)
- consumer spending (topic)
- retail sales (topic)
- Morning Consult (company)
- post-pandemic economy (topic)
- revenge spending (topic)
- worker shortages (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/what-is-post-pandemic-revenge-spending-and-what-does-it-mean-for-business-owners-2715707). Summarized by Burnaze (https://burnaze.com/article/b637e355-7f76-4e18-85b3-2ca8125e9498).