Restaurant sales are slowing, and grocers are to blame

We examined government information on eatery deals and contrasted it and expansion information for eateries and merchants, going back to 2009. That crevice has been extending since January 2015, when merchants cost increments really outpaced eateries value climbs by 20 premise focuses. At the point when eatery costs are expanding at an obviously higher rate than they are at supermarkets, general eatery deals moderate. Eatery deals rise when food merchants raise their costs at higher rates. Merchants were raising costs at rates that were significantly higher than eateries, and eatery deals surged.

Key Takeaways:

• Historically, the rise of food commodity prices has been good for restaurant sales.
• The current drop in restaurant sales appears to be due to plummeting supermarket costs.
• People have much less incentive to eat out when restaurant prices are significantly higher than food prices at the grocery.

“In 2009, of course, the world was in a generational recession. People didn’t eat out as much because too many of them were broke and out of work.”

Read more: http://www.nrn.com/sales-trends/restaurant-sales-are-slowing-and-grocers-are-blame