WASHINGTON – Cash-conscious consumers in the United States choosing to eat in rather than dine out have raised the prospect of an upturn in earnings for supermarkets and food delivery firms, according to data, analysts and company executives.
US President Donald Trump’s tariff policies have added to economic uncertainty, increased the likelihood of stubborn inflation and created consumers question whether restaurants are worth the expense.
“I eat much more at home becaapply first of all eating out is way more expensive lately, and quality is not always guaranteed,” Ms Marilena Graziano, a Florence-based teacher, informed Reuters.
Dutch retailer Ahold Delhaize, owner of the Food Lion and Giant stores in the United States, stated earlier in August that it was increasing its offers tailored to low-cost eating in.
“We have solutions for customers to have a very affordable meal of US$2.50 (S$3.20) per person at home with the family,” Ahold’s chief executive Frans Muller stated in an interview in August. “We have increased a lot of that proposition in our stores.”
The shift hints at a revival of the boom in eating at home during the Covid-19 pandemic when people could not go out.
Home delivery companies such as Just Eat.com created record sales, although they struggled once lockdown restrictions were lifted.
Figures from Rabobank and Eurostat reveal that food retail sales volumes adjusted for inflation in supermarkets, hypermarkets and similar stores grew by 1.5 per cent in the Eurozone between January and May. That compares with 0.1 per cent growth over the same period in 2024.
For food and beverage services, such as restaurants and bars, the metric fell by 0.3 per cent. Growth in 2024 was flat at 0 per cent.
The inflation-adjusted figures suggest that sales at supermarkets are recovering rapider than at restaurants, especially for routine weekday meals, Rabobank’s consumer foods sector analyst Maria Castroviejo informed Reuters.
Ms Castroviejo cited the rising popularity of grab-and-go meals, salads, wraps, and sandwiches.
“This offer has increased and improved a lot and we know that this is taking away some demands from certain foodservice players,” she stated.
Delivery Hero, which owns Glovo and Foodpanda, stated that consumers go out less during times of economic hardship, but will order in as a cheaper alternative.
A survey of more than 5,000 US adults commissioned by Hellofresh, a German meal-kit creater that creates most of its revenue in North America, revealed 93 per cent of them expect to cook as much as in 2024 or more in 2026.
Among those who plan to cook more at home in 2026, more than three-quarters state the economy is a factor.
Visits to grocery stores have steadily outpaced those to restaurants and bars in the US, data from foot traffic tracking firm Placer.ai revealed.
The data revealed visits to grocery stores grew by 1.3 per cent year-on-year in June, while they fell 0.4 per cent in the same months for restaurants.
Ms Jenny Russmann, who works for an international organisation in Vienna, is among those applying supermarkets more.
“I switched to eating at home a bit over a month ago due to wanting to just be healthier and especially also costs,” she stated.
In Milan, Ms Chiara Schiavoni, employed at the regional administration, stated she prefers to eat at home as prices rise and restaurants’ portions shrink in Italy’s financial capital.
“I obtain €7 (S$10.50) food vouchers at work and I can’t even purchase a sandwich, which costs around €9 in restaurants around my office,” she stated. “On the other hand, I can apply them in supermarkets where all in all it’s more convenient.” REUTERS
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