As cost of dining out rises, more of us eating at home
Carrie Cherkinsky is fed up with the high cost of eating out.
After watching menu prices rise, the former restaurant manager has cut down dining out by more than half.
“I was eating out six or seven times a week between lunch and dinner,” said Cherkinsky, 35, a health-care recruiter from Orlando. “I’ve been saving tons from not going to restaurants as much, especially when you add up the food and drinks.”
While food costs are dropping, menu prices continue to rise because of pressure on wages and rent that restaurants pay. The cost of eating out is up about 2.1 percent in the past year, while grocery prices have barely budged, according to the July Consumer Price Index report. Some consumers are also trying to eat healthier by cooking at home, and more home delivery options are available.
A loaf of white bread is 2 cents cheaper than a year ago at $1.32, and eggs are 21 cents cheaper a dozen, according to the Consumer Price Index.
Put together, food prices have risen just 0.3 percent in the past year.
Consumers also have a lot more reasons to stay home to eat today, said David Portalatin, vice president and industry analyst for food for NPD Group. Online shopping has cut down on trips to the grocery store, streaming video keeps consumers at home and more workers are telecommuting.
“The retail landscape is being disrupted, and if you don’t need to travel to the store, you remove a huge reason for eating out,” Portalatin said.
Consumers aren’t just buying more food from grocery stores; they are eating restaurant food at home more through rampedup restaurant carry-out and delivery programs. “The American consumer is embracing spending more time at home,” he said.
Grocery and convenience stores have responded to shifting behavior by bulking up ready-to-eat foods and meal preparation options to try to get a bigger slice of the food spending pie.
Restaurants haven’t been oblivious. Many chains have bulked up carry-out programs as well and partnered with Uber and Amazon for delivery. “There’s no denying the trend,” said Tijuana Flats CEO Larry Ryback. “We see it as a shift in our business and intend to meet the demand.”