Soaring Dining Costs Lead Consumers to Cook at Home, Squeezing Restaurant Profits

Food and dining prices have risen 25% during the pandemic, indicating a recession is likely
Lower income consumers are eating less fast food and making fewer restaurant trips due to high prices
While overall consumer spending on food remains steady, the portion spent on dining out has dropped from 45% to 40%
Restaurants face rising labor costs on top of food inflation, with wages up 25%
Restaurant executives are focused on profits over customer counts, but historically this strategy fails when competitors drop prices