Americans’ Changing Eating Habits Include Simpler Meals Out, Value Grocery Stores

The economy is changing how Americans are eating.

Diners are moving meals from sit-down restaurants to fast-casual joints, according to executives at a range of a businesses, and taking more trips to value supermarkets. Data released this week by Bank of America, indicates that a rising cost of living is prompting Americans, especially lower-income consumers, to dine out less and look harder for grocery deals.

Discretionary spending, such as vacations and restaurant visits, has been down for about two years, Bank of America said. And sales at restaurants and bars fell 1.5% from January to February, according to Census Bureau data released this week.

Restaurants have noticed, executives said on recent earnings calls. Darden Restaurants (DRI), the company behind Olive Garden and LongHorn Steakhouse, said its casual concepts are serving fewer households making less than $50,000 a year. Diners are ordering fewer appetizers, beverages and desserts, according to Michael Spanos, CEO of Bloomin Brands (BLMN), parent company of Outback Steakhouse and Carrabba’s Italian Grill.

“We’re seeing some check management with, especially, those households [earning] under about $100,000,” Spanos said on an earnings call last month, according to a transcript from AlphaSense. 

Fast-Casual Spots and Gas Stations See Food Sales Rise

The push to save is benefiting Cava (CAVA), a fast-casual Mediterranean chain that believes it is drawing customers who are curtailing visits to casual dining spots, CEO Brett Schulman said on an earnings conference call last month.

Cava gets “folks trading down from a legacy casual dining experience and sharing a meal in our dining room,” as well as “trading up from traditional [quick-service restaurants] for $1 or $2 more,” Schulman said.

Casey’s General Store (CASY), which sells gas, snacks and prepared foods like pizza, stands to gain as shoppers look to spend less on meals, CEO Darren Rebelez said on an earnings call this month. Once in Casey’s, shoppers are eschewing candy, where prices are “very high,” in favor of baked goods, he said.

The change “is a little more affordable and still allows people to get that sweet indulgence that they’re looking for,” Rebelez said.

Changing Habits in the Grocery Aisle

Grocery shopping patterns have also evolved. Sprouts Farmers Market (SFM), where shoppers skew higher-income, expects customers to respond to economic pressure by eating out less and coming into its stores more, CFO Curtis Valentine said at a conference this month.

Many families are relying more on value supermarkets, according to Bank of America. Household spending at discount grocers grew 1.2% from February 2024 to 2025, while falling 1.4% at premium supermarkets, the bank said.

Shoppers are more frequently reaching for smaller package sizes, said Kenneth Casey Keller CEO of B&G Foods (BGS), the group behind Crisco, Green Giant and Cream of Wheat.

“We will look at: the smaller size in our portfolio, how do we emphasize those for consumers that might be looking to trade down?” he said on an earnings call last month.