Eating in makes a comeback as inflation hits restaurants
Cash-conscious
consumers 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 made consumers question
whether restaurants are worth the expense.
"I
eat much more at home because first of all eating out is way more expensive
lately, and quality is not always guaranteed," Marilena Graziano, a
Florence-based teacher, told Reuters.
Dutch
retailer Ahold Delhaize, owner of the Food Lion and Giant stores in the United
States, said earlier this month that it was increasing its offers tailored to
low-cost eating in.
"We
have solutions for customers to have a very affordable meal of $2.50 per person
at home with the family," Ahold's CEO Frans Muller said in an interview
this month. "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 made
record sales, although they struggled once lockdown restrictions were lifted.
Figures
from Rabobank and Eurostat show that food retail sales volumes adjusted for
inflation in supermarkets, hypermarkets and similar stores grew by 1.5 percent
in the Eurozone between January and May this year. That compares with 0.1
percent growth over the same period last year.
For food
and beverage services, such as restaurants and bars, the metric fell by 0.3
percent. Last year's growth was flat at 0 percent.
RESTAURANTS
LAG
The
inflation-adjusted figures suggest that sales at supermarkets are recovering
faster than at restaurants, especially for routine weekday meals, Rabobank's
consumer foods sector analyst Maria Castroviejo told Reuters.
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 said.
Delivery
Hero, which owns Glovo and Foodpanda, said 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
maker that makes most of its revenue in North America, showed 93 percent of
them expect to cook as much as last year or more in the next year.
Among
those who plan to cook more at home in the next year, more than three-quarters
say 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 showed.
The data
showed visits to grocery stores grew by 1.3 percent year-on-year in June, while
they fell 0.4 percent in the same months for restaurants.
Jenny
Russmann, who works for an international organisation in Vienna, is among those
using 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."
In Milan,
Chiara Schiavoni, employed at the regional administration, said she prefers to
eat at home as prices rise and restaurants' portions shrink in Italy's
financial capital.
"I
get seven-euro food vouchers at work and I can't even buy a sandwich, which
costs around nine euros in restaurants around my office," she said.
"On the other hand, I can use them in supermarkets where all in all it's
more convenient."
















