Restaurant Prices Are Moving Past Grocery Costs – And That Means Bad News For Going Out
When the pandemic hit in 2020, dining out temporarily became a thing of the past. Rather than sitting and chatting with friends, takeout windows were the new norm, and delivery drivers had the option to leave the food at the door — something that had never existed prior to the days of regular masking and staying inside. However, as restrictions eased and vaccines became accessible, dining out made a strong comeback, though inflation and labor shortages caused menu prices to rise. Still, most diners didn't mind, with GlobeNewswire reporting that 68% of consumers were "ok" with restaurants raising menu prices — especially considering inflation saw grocery prices at an all-time high as well.
For a while, both restaurant and grocery prices were seeing steep increases. In the restaurant industry, labor shortages were affecting staff, and owners were forced to offer higher pay and greater benefits to attract people to the role. Now, though, menu prices are rising at a faster rate than grocery prices, which could have an impact on your dining out experience. It turns out that over the last year, restaurant prices have risen at a rate 0.4% higher than groceries — and your wallet will literally pay the price.
Restaurants are still seeing a sharp price rise
From the food side of things, supply chain issues resulted in higher food costs, and in order to survive the industry, restaurants were forced to pass that cost onto the consumer in the form of higher prices. Now, restaurant prices have officially passed grocery prices in terms of rising costs 151 according to the U.S. Bureau of Labor Statistics, restaurant menu prices are up 8.8% year-over-year, while grocery costs are up 8.4%.
It's the first time the rising cost of dining out has outpaced the rise in grocery prices. When grocery prices were high, people didn't mind dining out as much because it was easier than cooking at home. However, now that it's more expensive to dine out, it could mean people will slow up on how often they go out to eat. Whereas CNBC reports grocery prices have seen a decline for the second month straight, restaurant prices are only getting higher.
How to save on dining out
If you're someone who loves dining out and doesn't want to give it up (of course, it can also be a way to support small businesses), there are a few ways you can pay less for your meal. Limiting what you order (think: having a snack at home and skipping the appetizer while out) is probably the easiest way to spend time with friends or a date without breaking the bank. Plus, take advantage of happy hour specials. Restaurants and bars will often offer deals on drinks and appetizers for several hours each weeknight — and sometimes on weekends.
Dining during the week might be your best bet to save money. Weekdays tend to be less crowded than weekends, so restaurants typically have weeknight specials to get people through the door. And if you choose to go to a chain restaurant, make sure to sign up for promotional emails. Many of these restaurants offer deals to those on their email list, and there are a number of places where you can even get free food on your birthday.