After celebrating the end of COVID restrictions with an epic restaurant tab, diners are now hitting the brakes on eating out.
Many U.S. households, especially lower- and middle-income ones, are cutting back on restaurant spending as inflation pressures their budgets. Feeling the same pinch, restaurants from Chipotle Mexican Grill Inc. to Cracker Barrel Old Country Store Inc. have increased prices to keep up. This will likely translate into lower traffic and stagnating sales in coming months.
A September survey from research firm Datassential Inc. found half of consumers had recently cut back on restaurant meals due to high inflation. It was the No. 1 expenditure respondents opted to trim, followed by apparel and travel. About 30% of those surveyed said they plan to dine out less or stop visiting restaurants entirely in the coming months.
