Rising Home Dining Boosts Grocers While Restaurants Lose Traffic

A growing number of consumers in Europe and the United States are opting to eat at home rather than dine out, squeezing restaurants while improving prospects for supermarkets, meal-kit providers and food-delivery platforms, according to industry data and analysts. Figures compiled by Rabobank and Eurostat show inflation-adjusted food retail sales in supermarkets, hypermarkets and similar outlets rose 1.5% in the euro area between January and May, while sales at restaurants and bars slipped 0.3%. Foot-traffic data from Placer.ai point to a similar pattern in the United States, with grocery store visits up 1.3% year-on-year in June as restaurant visits fell 0.4%. Retailers are tailoring promotions to capture budget-conscious shoppers. Ahold Delhaize, owner of Food Lion and Giant in the U.S., has expanded offers for meals that cost about $2.50 per person, Chief Executive Officer Frans Muller said this month. Meal-kit company Hellofresh reported that 93% of the more than 5,000 U.S. adults it surveyed expect to cook at least as much at home over the next year, citing price pressures. Delivery Hero, which owns Glovo and Foodpanda, said orders typically rise when consumers curb restaurant spending. In the U.K., the shift has yet to lift all grocers. Industry observers say Asda continues to lose market share after a summer sales dip, even as discounters such as Lidl narrow the gap with Morrisons. Analysts also warn that higher airfares and hotel costs during the school-holiday period are likely to nudge the July consumer-price index up to about 3.7%–3.8%, potentially prolonging pressure on household budgets and reinforcing the at-home dining trend. Trade bodies add that 79% of hospitality firms have raised menu prices since the government’s latest budget, underscoring the sector’s struggle to pass on rising food and wage costs.