August 16, 2022
It has long been a common myth that cooking meals at home is more economical than spending money on eating out. But an inflationary economy may turn that logic upside down.
Grocery prices rose 13.1% year-on-year in July 2022, while restaurant prices rose only 7.6%. wall street journal report. The gap is the largest since the 1970s, and some major quick-service restaurant chains have already announced plans to increase the value of their products.
Transaction-focused ads from major restaurant chains have been on the rise this year, with 46% of transactions from January to April and 58% from May to August.
Grocery inflation outpacing restaurants is consistent with the trend we saw in late 2021 and early 2022. CNBC.
The economy’s tilt in favor of restaurants represents a major shift from the early days of the pandemic. With restaurant closures and social distancing regulations, U.S. consumers are largely eating at home, spending more on groceries than in restaurants at a rate not seen since 2008.
The inflation experienced by restaurants was lower than grocery stores, but not trivial.local news report Tell stories about how rising food prices have forced restaurants to pass the costs on to their customers.
Gas price inflation eased in July, but food costs continued to rise. CNBC Report from early August. The cost of baked goods rose 15% year-on-year, milk and dairy products rose 14.9%, and fruits and vegetables rose 9.3%. Prices are expected to rise he 6.7% over the next 12 months. Experts say Fed rate hikes will take time to cycle through the economy.
Discussion question: Will US consumers shift more food spending to restaurants by the end of 2022? How do you think restaurants and grocery marketing will respond to rising food prices over the next six months? mosquito?
“The general trend we see is that people are eating out less, which is more expensive, and replacing it with snacks at supermarkets. But patterns vary by income group.
