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Restaurant spending reaches new high compared to grocery shopping

New U.S. Census data indicates restaurant market share was 56.4% in October

Ron Ruggless, Senior Editor

November 15, 2024

2 Min Read
Young Man receiving coffee at a drive thru counter
Retail sales for September were also revised upward, the Census Bureau said.Getty Images

Restaurants’ market share was 56.4% in October, with groceries and supermarkets making up the rest, according to data released Friday by the U.S. Census Bureau.

“This is a new all-time high for the domestic restaurant industry in this regard,” Mark Kalinowski, president and CEO of Kalinowski Equity Research, said in an analyst’s note. “The year-over-year gain was about 40 basis points, marking slight sequential acceleration from September 2024’s 30 basis-point market-share rise.”

Retail sales for September were also revised upward, the Census Bureau said.

“After the uptick we witnessed in September—which was later revised even higher—the U.S. Census Department of Commerce reported more good news in October,” said Chip West, retail and consumer behavior expert with Chicago-based RRD. “Retail sales increased 0.4% month-over-month and 2.8% year-over-year, highlighting continued healthy consumer spending.”

West noted that many businesses were imposing return-to-office requirements, which were “expected to positively impact the restaurant category, which saw a slight bump in October,” West said.

“Dining establishments, which have faced significant challenges due to the loss of weekday foot traffic since the COVID-19 pandemic, are likely to benefit from an increased presence of in-office workers,” West said. “This resurgence in workplace activity could help drive weekday lunch and happy hour traffic, providing a much-needed boost to these businesses.”

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As the winter holidays approach in November and December, West said restaurants with catering options, “will certainly have an opportunity to promote and attract the number of consumers that are planning to host holiday celebrations this year.”

Kalinowski noted that while restaurant same-store sales gains slowed noticeably through the end of the third quarter, “it appears perhaps a little more likely that the worst is over.”

Kalinowski also said the restaurant industry would begin to lap easier same-store sales comparisons in 2025.

He said it was important to note that overall spending on food and beverages did not grow in January-October 2024 as fast as it was growing in the same periods in the past three years.

This article was initially featured on Nation's Restaurant News, a sister publication of Supermarket News.

About the Author

Ron Ruggless

Senior Editor, Nation’s Restaurant News / Restaurant Hospitality

Ron Ruggless serves as a senior editor for Informa Connect’s Nation’s Restaurant News (NRN.com) and Restaurant Hospitality (Restaurant-Hospitality.com) online and print platforms. He joined NRN in 1992 after working 10 years in various roles at the Dallas Times Herald newspaper, including restaurant critic, assistant business editor, food editor and lifestyle editor. He also edited several printings of the Zagat Dining Guide for Dallas-Fort Worth, and his articles and photographs have appeared in Food & Wine, Food Network and Self magazines. 

Ron Ruggless’ areas of expertise include foodservice mergers, acquisitions, operations, supply chain, research and development and marketing. 

Ron Ruggless is a frequent moderator and panelist at industry events ranging from the Multi-Unit Foodservice Operators (MUFSO) conference to RestaurantSpaces, the Council of Hospitality and Restaurant Trainers, the National Restaurant Association’s Marketing Executives Group, local restaurant associations and the Horeca Professional Expo in Madrid, Spain.

Ron Ruggless’ experience:

Regional and Senior Editor, Informa Connect’s Nation’s Restaurant News and Restaurant Hospitality (1992 to present)

Features Editor – Dallas Times Herald (1989-1991)

Restaurant Critic and Food Editor – Dallas Times Herald (1987-1988)

Editing Roles – Dallas Times Herald (1982-1987)

Editing Roles – Charlotte (N.C.) Observer (1980-1982)

Editing Roles – Omaha (Neb.) World-Herald (1978-1980)

Email: [email protected]

Social media:

Twitter@RonRuggless

LinkedIn: www.linkedin.com/in/ronruggless

Instagram: @RonRuggless

TikTok: @RonRuggless

 

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