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Restaurant chains feel the pinch as US consumers tighten their belts

Digest opened free editor

American consumers eat at home to save money because they are concerned about slowing the economy and high prices, which leads to warning restaurant chains of low sales.

IHOP, Applebee’s Dine Brands, SweetGreen, Wendy’s and Denny’s All Devinbs this week that consumers’ frequency in his spending is the damage of sales. Chipotle Mexican Grill warned a similar warning last month.

Americans have eaten 1 billion lower meals in restaurants between January and practiced more than the same quarter a year ago, according to the data of the Circana Market Company. This decrease came after the quota that was eaten at home to somewhat restaurants since 2023.

McDonald’s CEO Chris Kimbesinski said that although sales in a burger series have come to grow in the last quarter, low -income customer visits in particular decreased through a “double number” between April and June as their real income declined.

“The result of this is that you see that people either overcome occasions, so they are skipping.

Fears of the slowdown in the labor market and the economic impact of the tariff scheme of US president Donald Trump on spending, which led to the so -called Kelly Valid CEO of religious company “a very volatile consumer environment.”

“Total economic changes” made the sales of the dinner chain “very volatile” in July, and the financial director of Dini Robert Verostic added.

The increasing consumer efforts to search for savings by cooking more food sparked a wave of valuable meals from “Taco Bell’s” desire boxes “to the McDonald’s meal deal, which is valued at $ 5 in an attempt to extract dinner, with mixed success.

The visits to American restaurants decreased by 1 percent this year compared to 2024, according to Black Box Intelligence in the market. The worst fast food restaurants were hit, with traffic sliding by 2.3 percent in the second quarter compared to the previous year.

“At the present time, we have consumers who have benefited from consumers,” said Sally Leon White, Circana advisor, who focuses on the food services industry.

“It will take a lot of cranes withdrawn to make consumers more comfortable to spend more money than home. It will not be this year.”

John Biton, CEO of Dine Brands, said that the Americans had ate out, as they were underestimating drinks and directed or “trading” to more than the unparalleled menu elements in an attempt to reduce their bill.

“Through regular consumer research, we hear concerns about high prices, future job prospects, and general anxiety over the future,” said Michael Skiporth, CEO of Wingstop, adding that the growing chicken suite chain has witnessed some “softness” between low -income Diners.

Although the total food inflation slows down, the cost of eating out exceeds its cleansing at home, with a 2.4 percent food consumer for home consumer and food away from home climbing by 3.8 percent in 12 months to June. The US Department of Agriculture expects that the costs of eating abroad will continue to rise more quickly than home meals. Last year, consumers spent 1.1 Train on food at home and $ 1.5 trillion for food away from home, including taxes and tips.

White said: “The last comment of the place where consumers still spent food and drinks,” said White. “But we see a slowdown in food and drinks.”

Meanwhile, companies inside and outside the food services sector are trying to take advantage of the cooking boom.

CEO Scott Hawkins told analysts last week that Reynolds products for consumers, the Reynolds maker wraps aluminum chips and huge food storage bags, expanded the distribution of elements for home meals.

He told analysts: “The need for comfortable ways to cook and enjoy food at home is also growing, driven by demographic changes and homes that the food followed away from the superiority of food costs at home.”

However, restaurant operators have been hoping that traffic would recover before the end of the year.

Chipotle Mexican Grill, CEO of Scott Boatwright, told Chipotle Mexican Grill, CEO of Chipotle Mexican Grill, CEO of Chipotle Mexican Grill, CEO of Scott Company Boatwright, for Chipotle Mexican Grill, CEO of Scott Boatwright, for Chipotle Mexican Grill, CEO of Scott Boatwright, for Chipotle Mexican Grill, CEO of Chipotle Mexican Grill, CEO of Scott Boatwright, “I think a lot we are seeing now is due to macro and consumer-Consumer with low income consumers are searching for value as a price point nowadays …”.

“I think that with the improvement of feelings, the works will improve.”

Additional reports by Gregory Mayer in New York

2025-08-09 12:00:00

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