Cash-Strapped Americans Are Abandoning Restaurants
Americans are abandoning restaurants, with financial concerns named as the culprit.
The average American goes out to dinner 74 times a year, The Washington Post's Wonkblog reports, citing consumer research firm NPD group. That's the lowest reading in three decades.
The popularity of take-out and prepared foods, like frozen pizzas, has partially contributed to the decline, reports Roberto Ferdman at Wonkblog.
But Americans are also worried about cash and looking to cut back.
"Consumers spent roughly 7 percent less on eating out in 2010, compared to the year before, according to the Bureua of Labor Statistics," Ferdman writes. "Meanwhile, people are buying more groceries, because it's cheaper."
The Federal Reserve Board reports that all groups of consumers had a lower mean income in 2013 than they did in 2007. Mean wealth also declined for all the groups.
The trend is hurting business at casual dining establishments like Olive Garden, Applebee's, and Red Lobster.
The restaurants have tried implementing more promotions to lure back customers.
Even McDonald's customers are complaining that the fast food fare is too expensive, according to a Bloomberg report.
The retail sector is also hurting.
Low-income and middle class retailers including Wal-Mart, JCPenney, Target, Macy's, and Family Dollar have reported disappointing earnings this year
Executives at these retailers say that Americans are increasingly unwilling to spend money on discretionary items, despite modest gains in the job market.
"Low-end and middle-income retailers are still suffering because people are buying so close to need," Brian Yarbrough, consumer analyst at Edward Jones, told Business Insider. "In the past, retailers could depend on people spending a little more."
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- Colon cancer rates are rising in young people. If you have two symptoms you should get a colonoscopy, a GI oncologist says.
- Having an regional accent can be bad for your interviews, especially an Indian one: study
- Dirty laundry? Major clothing companies like Zara and H&M under scrutiny for allegedly fuelling deforestation in Brazil
- 5 Best places to visit near Darjeeling
- Climate change could become main driver of biodiversity decline by mid-century: Study
- RBI initiates transition plan: Small finance banks to ascend to universal banking status
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market