It’s certainly not a good time for consumption—and this is also true for the world’s largest economy, the United States.
Economic uncertainty, driven by factors such as tariffs, geopolitical tensions, and inflationary pressures, is reshaping consumer behavior and slowing down spending across several sectors. Among the most affected are restaurants, alcohol, and the broader food and beverage industry.
A nationwide study conducted by Popmenu, a technology company serving more than 10,000 restaurants, reveals a significant pullback in consumer spending habits. According to the report, 67% of U.S. consumers say they are cutting back on everything from food to clothing, as well as travel, leisure activities, and alcohol consumption. What underlies these decisions is a lack of confidence: three in four consumers (75%) fear that the U.S. could enter a recession this year.
Where Consumers Are Cutting Back
The survey, which tracked the behaviors of 1,000 U.S. consumers aged 21 and older through June 2025, shows clear patterns in spending reductions.
- Restaurants top the list, with 61% of respondents cutting back compared to last year.
- New clothes and shoes follow at 52%, while entertainment (49%) and travel (47%) are also significantly affected.
- Even groceries (34%) and alcohol (32%)—typically seen as more stable categories—have seen declines.
These changes are reshaping how consumers engage with food. On average, Americans spend USD 115 per week on restaurants and USD 235 on groceries. While more than half (57%) still dine in or order from restaurants at least twice a week, most are looking for ways to save. Takeout dominates, with 44% preferring it to delivery or dining in. Only 34% choose to eat in restaurants, while 22% opt for delivery, where added fees often make the experience less appealing.
Quick-service restaurants, particularly fast-food chains, are benefiting most from these shifting habits. They offer convenience and lower prices, which align with the current consumer mindset.
A Tightening Restaurant Budget
The survey highlights a sharp reduction in consumer confidence when it comes to dining out. In June, 44% of consumers said they planned to spend less on restaurants compared to summer 2024, while only 18% planned to increase spending, and 38% expected no change.
At the same time, consumers are becoming increasingly resourceful with grocery shopping. Many are actively adopting cost-saving behaviors:
- 49% are buying cheaper or generic products.
- 47% are cutting back on snacks.
- 43% are limiting purchases to essential items only.
- 43% are using coupons to maximize savings.
The Restaurant Industry’s Challenge
Brendan Sweeney, CEO and co-founder of Popmenu, underlined the gravity of the situation:
“As the demand for good food and hospitality continues, consumers are becoming more discerning with their finances. Restaurants must not only compete harder with each other but also with all other companies vying for a larger share of consumer spending. Consistently engaging consumers through digital channels and offering financial incentives to dine in is now more important than ever.”
For restaurants, this means that strategies such as loyalty programs, discounts, and online engagement are no longer optional—they are vital. As consumer confidence in the U.S. economy weakens, businesses must be prepared to fight for relevance in an increasingly cautious market.
Source: WineNews