If you want to know one of the reasons why people are living paycheck to paycheck and can’t seem to keep their head above water, then look no further then this latest piece of data: consumers are spending a huge chunk of change at restaurants.
According to the Department of Commerce, spending at U.S. restaurants spiked over the last three months at the fastest pace on record. The U.S. government reported that sales at food-service and drinking establishments surged 1.3 percent in July to $61.6 billion.
With July’s impressive numbers, the three-month annualized gain has risen to 25.3 percent, a 26-year-old record.
Analysts say that consumers are using the additional cash from tax cuts on dining out. Also, Americans may appear to be spending more because restaurants have increased menu prices amid rising minimum wages and ballooning overhead costs.
It is truly remarkable to see the gap close between eating at home and eating out over the last century.
At the turn of the 20th century, it was rare to eat at a restaurant as most Americans made a meal in their humble abode. Today, it is pretty much even nowadays.
Just take a look at this chart:
Plus, how many people do you know who can’t even cook a dish and opt to eat out several times a week?
“It is truly remarkable to see the gap close between eating at home and eating out over the last century.”
No wonder more people are eating out now.
1. More single parent households
2. Both parents have to work, who wants to cook when they just put in 8 hours of work
3. Latchkey kids with no supervision
4. When moms could stay home they had dinner ready when dad got home from work and had plenty of time to teach kitchen skills to their children.
They call this progress, I am not so sure!