In the upcoming struggle for share of stomach, restaurants may have an advantage over grocery stores, according to a market analyst for Bank of America.
The price of food consumed at home rose 6.5% over the 12 months ending in October, according to statistics from the U.S. Department of Labor. Food eaten away from home went up only 6%
Sara Senatore wrote in a note for BoA, quoted by CNBC, that the difference might be enough to drive consumers to eat out more. This effect could buoy restaurants through the first half of this year, although it might peter out afterward, Senatore wrote.
The pandemic has reversed the usual consumption pattern for Americans: In 2020, 51.9% of consumer dollars for food were spent on food eaten at home. This is the first time spending on at-home food was higher than spending on restaurant meals since 2008.
Restaurateurs also have more ability to adapt to inflation than grocers: they can alter or discontinue specials, change portion sizes and use other tactics. But many of them, like grocers, have been forced to raise prices.
