US consumers are eating at home to save money as they worry about a slowing economy and stubbornly high prices, leading restaurant chains to warn of declining sales.
IHOP and Applebee’s owner Dine Brands, Sweetgreen, Wendy’s and Denny’s all warned investors this week that consumers’ hesitancy to spend is hurting sales. Chipotle Mexican Grill made a similar warning last month.
Americans ate 1bn fewer meals at restaurants between January and March than the comparable quarter a year ago, according to data from market research firm Circana. That decline came after the share of meals eaten at home versus at restaurants has remained more or less steady since 2023.
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