- Many diners say they're eating at restaurants less in order to save money.
- But spending data from Bank of America challenges that notion.
- Spending growth at restaurants has outpaced that of grocery stores in the last few months.
People often look to cut back on eating at restaurants when they want to save money, but recent spending data suggests they haven't been following through.
"Dining out less" was the second-most-common answer in a recent CivicScience survey that asked consumers what actions they had taken in the last 30 days to reduce their expenses, according to a new Bank of America report.
However, restaurant spending per household increased 2.1% between March and June, shows credit and debit card data from the same Bank of America report, published in July. Spending at grocery stores rose 0.1% over the same period.
Some diners, especially low-income households, did indeed make fewer visits to restaurants in June, according to the data. But they increased their spending during each visit, at least partially offsetting their savings from going out to eat less frequently, Bank of America found.
Inflation has pushed many menu prices higher in the last few years. Prices at many fast-food restaurants, for example, went up by double-digit percentages in 2022 and 2023 — bigger increases than the historical trend of around 2% annually.
Though the rate of inflation has come down, many of those higher prices are still around.
Large restaurant chains have responded by offering new deals focused on value. Last year, McDonald's introduced a $5 meal that has become a standing part of its new value menu. McDonald's has said the deal has helped get customers to stop by the chain's restaurants.
However, the report found that diners cut back on visits to fast-food restaurants in June while increasing visits to casual sit-down chains. Some chains, such as Chili's, have grown sales in recent quarters by offering meal deals similar to those at fast-food joints but with table service.
"We are seeing a continuation of the consumer selectivity that typically characterizes times of economic uncertainty," Bank of America's report said. "Some consumers appear to be seeking out perhaps fewer, but more meaningful experiences."
