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Based on one of the consumer spending measurements I track (restaurant sales) people are becoming increasing more secure in their finances and are expressing this by choosing to spend their money at restaurants instead of eating at home.
Here is why I feel restaurant sales are an important economic indicator:
- If your finances have changed and money is now tight, one way to save is by eating at home or packing your own lunch for work.
- If you finances are okay now but are afraid you might not have as much in the near future (potential job loss, investments will fall, etc.) you tend to cut back on your discretionary spending such as eating at restaurants as a way to conserve your money.
- The reverse is also true. The more discretionary money you have and the more confidence you have in your financial future the more likely you are to spend money on non-essentials such as eating at restaurants.
Here are some interesting facts courtesy of the National Restaurant Association:
- 2012 U.S. restaurant industry sales are expected to reach a record high of $632 billion
- This will be the third consecutive year of growth.
- The 100 largest food service brands generated 2011 U.S. sales of $205.72 billion
- This was an increase of 4.47% over 2010.
- There are nearly 970,000 restaurant locations across the country serving an average of 130 million people daily and employing 12.9 million people.
- Restaurant industry sales make up 48% of total food sales.
- The average family spent $2,505 at restaurants in 2010.
- 2011 U.S. sales for the ten largest chains
- McDonalds – $34.17 billion
- Subway – $11.43 billion
- Starbucks – $8.49 billion
- Burger King – $8.13 billion
- Wendy’s – $8.11 billion
- Taco Bell – $7.00 billion
- Dunkin’ Donuts – $5.93 billion
- Pizza Hut – $5.50 billion
- KFC – $4.60 billion
- Applebee’s – $4.43 billion
How often do you eat at restaurants?
Have you changed the type of restaurant you eat at as your finances have changed?
