Restaurants make up more than half of food spending today compared to about 25 percent in the 1950s, according to The Atlantic. Total locations in the fast-casual sector (chains such as Chipotle and Sweetgreen) grew by nine percent last year while same-store sales have been falling by about two percent annually. The “casual dining” sector (full-service restaurants with a per person price point between $15 and $25 such as Applebees, Chili’s and Maggiano’s) has seen both declining sales and declining traffic in part because of the increasing availability of made-to-order food options from grocers such as Whole Foods Market and Wegmans.

Although lunch and dinner traffic has been declining across the restaurant industry, breakfast sales are up eight percent in the last five years. Online restaurant sales (i.e. GrubHub), which currently account for about two percent of the restaurant market are projected to grow fifteen times faster than the rest of the restaurant industry through the end of this decade, according the report. Overall, the gap in spending between USDA designations of “food-away-from-home” (FAFH) (i.e. restaurants) and “food-at-home” (FAH) (i.e. grocery stores) has declined significantly since the 1950s.
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FAFH Spending (brown) vs. FAH Spending (purple) – Chart: USDA via The Atlantic

Last Updated on June 23, 2017 by Ramin Seddiq