Restaurants Off the Menu for Many Americans

What’s for Dinner?

Ever since the pandemic sent inflation soaring, U.S. consumers have been going back and forth on the most economical way to put food on the table.

There was a time when grocery prices had risen so sharply that the cheapest way to eat may have been a restaurant. But the pendulum has swung back, and more families are opting to get food from the grocery store again.

Falling Sales

The cost of eating out rose 4.1% in June, according to the Bureau of Labor Statistics. These price hikes may have reached the point where even fast food is off the menu for many Americans.

Many fast-food chains reported falling sales over the past quarter, according to data collected by NPR, including Starbucks (SBUX), McDonald’s (MCD), Denny’s (DENN), and Wendy’s (WEN). Several of these companies attributed the losses to cost-conscious shoppers.

On the other hand, sales at fast-casual chains like Chipotle (CMG) and Shake Shack (SHAK) were strong this past quarter, as their prices have come down to be more comparable to traditional fast-food spots.

Cooking at Home

We all learned that grocery store prices can also go up at a moment’s notice (remember egg-flation and shrinkflation), but grocery costs have increased at a more moderate pace than restaurants, rising just 1.1% in June. And that’s incentivizing Americans to cook at home more.

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