All articles tagged with #restaurant spending
Retail sales in the US have increased for the third consecutive month, indicating strong consumer spending despite economic concerns, with notable growth in auto and online sales, and restaurant spending, supporting ongoing economic expansion.
Americans are cooking at home more frequently and opting for budget-friendly foods due to financial pressures, leading to increased sales of home meal ingredients and a decline in restaurant visits, especially among low- and middle-income consumers, as a response to economic concerns.
Fast-casual chains Cava and Sweetgreen are experiencing a decline in delivery orders as customers opt to pick up their own food, indicating a trend towards more budget-conscious dining. Delivery orders tend to be more expensive due to added fees and tips, making pick-up orders a cost-saving option. While this shift benefits consumers, it can impact restaurants' revenue as delivery orders typically have higher totals. Sweetgreen reported weaker-than-expected sales in Q2, partly due to the decline in delivery transactions, while Cava's full-year forecast is cautious. Even Chipotle saw a drop in delivery service revenue. However, third-party delivery companies like Uber and DoorDash continue to see strong demand.