Did you know that some American Millennials and Gen Zers don’t know how to use a stove or an oven? The reason? They never cook. Americans have been known for their penchant for eating out all of the time and never eating a home-cooked meal. Millennials were famous for dipping into their savings frequently to eat out at healthy eateries. But, lately, that trend seems to be reversing a bit. To be sure, Americans still eat out often enough. But it’s time to explore why they seem to be tiring of eating out so much!
It’s Just Too Expensive
Yes, Americans love to eat out, but they also have to pay for rent, gas, some groceries, utilities, their mortgages or rent, and other expenses. Given just how much the price of everything has been going up, and how taxes have also been rising, Americans are cash-strapped.
Eating out is still a luxury activity. It was that way in the 1950s and 1960s when the average American only ate out once a week, and that too at Mcdonald’s. The average cost of eating out at a fast food joint has gone up exponentially in recent years. That’s even more true at sit-down establishments.
The average American spends 30% of his or her monthly budget on eating out. That has dropped by 10 percentage points over the last two years. But that doesn’t mean Americans have developed a new-found passion for cooking at home. A recent survey by the Nation’s Restaurant News revealed that 64% of Americans would gladly eat out daily if they could afford to.
The US Census revealed that Americans spent USD 94.2 billion eating out in November of 2023. That number dropped to USD 93.7 billion in March 2024.
Americans Weren’t Economical During COVID
Many Americans weren’t working full-time during COVID, so they had less cash coming in. That didn’t stop many of them from splurging money (perhaps funds that they didn’t have) on eating out. Axios recently stated that Americans spent 20.7% more on buying restaurant food than on regular groceries. Many of these people feel the financial pinch now that inflation is relentless.
Restaurants are raising their prices since the pandemic disrupted traditional supply chains and made it harder for them to do business as usual. They responded by passing the higher expenses onto the end-consumer in higher prices for dishes. The reality is that many restaurants are struggling to stay afloat financially even though they are charging more for their dishes.
Americans are also expected to tip at least 10% every time they dine out unless they order fast food. That can add up if they spend $300 a day eating out.
Hello Fresh and Other Instant Meal Companies Have Flourished
However, this doesn’t mean Americans are keen to learn how to cook. What it does mean is that instant meal companies like Hello Fresh have become popular since the Pandemic. That’s a trend that’s likely to continue, given just how expensive it is to eat out, even at McDonald’s where the infamous dollar menu has now gone extinct.
