Americans Are Cutting Back on Restaurants — Here’s Where the Money Is Going Instead

More Americans are reconsidering restaurant spending as groceries, household bills, travel, and other priorities compete for limited dollars. Cooking at home can lower total food costs even when the weekly grocery bill rises. (Pexels).

For many Americans, the question is no longer whether dinner out sounds good, but whether it fits the budget. Restaurant spending is increasingly being scrutinized as households deal with higher costs for groceries, transportation, housing, utilities, and other necessities. A 2026 KPMG consumer survey found that 67% of respondents were eating at home more often than dining out, and 76% of those cooking at home more frequently cited budget constraints.

The shift does not mean restaurants are empty, but it does show that consumers are becoming more selective about when a meal out is worth the price. So where does the money that once covered appetizers, delivery fees, and restaurant tips go instead?