LIVE MARKETS-Spending at restaurants slows, but independents outperform

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SPENDING AT RESTAURANTS SLOWS, BUT INDEPENDENTS OUTPERFORM

Consumers spent less at restaurants over the past year, though independent and local dining experiences outperformed chains, according to the Bank of America Institute.

Spending at restaurant chains decelerated to minus 1.9% over the past year, while independent and local restaurants decelerated to 0.8%, the institute said, citing aggregated credit and debit card data.

“A variety of macroeconomic factors are leading consumers to cut back on their restaurant spending, namely slowing wage growth and stubbornly elevated inflation,” Liz Everett Krisberg, head of Bank of America Institute and David Michael Tinsley, senior economist at the firm said in a note.

“However, amidst this slowdown, a silver lining has emerged – spending at independent and local restaurants has some renewed momentum,” they said.

Analysis by BofA Global Research, suggests that this is likely due to independent restaurants earning back their pre-COVID market share, especially as consumers look for variety in a crowded industry.

(Karen Brettell)

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