News

U.S. consumers spending more on restaurants than groceries

Restaurant spending experienced a recent surge that is causing grocery stores to lose ground with U.S. shoppers.

April 20, 2015

Restaurant spending experienced a recent surge that is causing grocery stores to lose ground with U.S. shoppers, according to Bloomberg News.

Restaurant and bar sales outshined grocery spending in March for the first time, according to data from the Commerce Department dating back to 1992, the article said. The data points to a possible generational shift beginning with Millennials, who more willing to dine out, according to a Morgan Stanley report.

"Millennials view dining out as a social event (i.e. a chance to connect)," the National Restaurant Association reported on its website. "They tend to favor fast food, deli food and pizza restaurants over coffee shops, high-end dining and casual dining. Their diversity and interest in new things draw them to more ethnic restaurants too."

While Millennials are going out, older Americans are staying in, as they are less willing to spend on dining out and more likely to use cash for grocery trips. Baby boomers who are dining out are an even smaller group than those who are purchasing less at restaurants and bars, by 10 percentage points, the article said.

Wal-Mart, Target, Costco and other retailers offering grocery items were not counted as part of the grocery-store category in Commerce Department data. Those retailers, the "general merchandise" category, experienced a sales increase in March, but it wasn't enough to make up for the winter decline.