![]() ![]() “I’m worried about the industry.”Ī closely-watched survey of services painted a similar picture. “I would be shocked if we don’t see some reduction in frequency. He’s also predicting a dropoff in diner visits for the coming months. Peabody, who is also the co-founder of Seated, a restaurant reservation app that offers rewards on meals, says the service’s average order was $88 in September, down from $91 last year at the same time. “We’re just starting to see people say, ‘Maybe I’ll choose the $35 bottle of wine instead of the $40 bottle of wine,” he said in an interview. Co-owner Bo Peabody said that diners are opting for less-expensive options, and they’re also starting to notice menu price increases. I would not be surprised to see that bleed into restaurants in the third and fourth quarter.”Ī slowdown is already evident at Mezze Bistro and Bar, an upscale eatery in Williamstown, Massachusetts, that serves fare such as Scottish salmon and eggplant caponata. “In the summer, a lot of the retail names were talking about how the middle-income consumers were the ones to kind of pull back their spending. “Consumers are going to continue to pull back,” Halen said. Spending at restaurants is likely starting to decline, according to Bloomberg Intelligence analyst Michael Halen. will be closely watched for insights into consumer demand. Inflation for food away from home surged 8.5% in September from a year ago, versus 13% for grocery stores.Įarnings next week from Chipotle and McDonald’s Corp. Restaurant prices, while climbing, haven’t risen as fast as at the supermarket. Of course, eating is getting pricier no matter where people dine. In contrast, inflation-adjusted spending on goods has declined for two straight months. ![]() The resilience of consumer spending has largely rested on persistent outlays for services such as eating out and travel. The index is down 16% in 2022 through Thursday’s close.Ī slowdown in restaurant traffic would also be an ominous sign for the broader US economy. Investors are clearly concerned: Of 32 companies on the Russell 3000’s index for restaurants and bars, only two are up this year in the stock market. “Anytime we see a reduction in buying power - and that can happen through inflation too - people will likely substitute towards food at home,” said Jayson Lusk, head of the Department of Agricultural Economics at Purdue University. ![]() About 30% of those surveyed said they plan to dine out less or stop visiting restaurants entirely in the coming months. 1 expenditure respondents opted to trim, followed by apparel and travel. found half of consumers had recently cut back on restaurant meals due to high inflation. This will likely translate into lower traffic and stagnating sales in coming months.Ī September survey from research firm Datassential Inc. Feeling the same pinch, restaurants from Chipotle Mexican Grill Inc. Many US households, especially lower- and middle-income ones, are cutting back on restaurant spending as inflation pressures their budgets. After celebrating the end of Covid restrictions with an epic restaurant tab, diners are now hitting the brakes on eating out. ![]()
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