Iowans' restaurant tabs are heftier than groceries
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Americans are spending more money at restaurants than on groceries — and the gap is widening.
Why it matters: It's a trend that holds true in Iowa and underscores the significance of the restaurant industry, Jessica Dunker, CEO of the Iowa Restaurant Association, tells Axios.
By the numbers: People spent 20.7% more at restaurants than on groceries in 2022 — and that rose to 29.5% in the first two months of the year, according to Commerce Department data released last week and compiled by real estate company JLL.
- Put another way, consumers spent about $130 on dining out for every $100 on groceries.
Zoom in: National restaurant spending rose 13% in March, compared with a year earlier.
- That outpaced retail's overall 2.9% gain, the Commerce Department reported Friday.
State of play: Iowans' spending on food and beverages prepared away from home nudged just ahead of groceries before the pandemic. But that sank when COVID-19 closures cut restaurant percentages by about half, Dunker says.
- Restaurant percentages have since regained their edge.
Yes, but: Many of Iowa's 6,000 dining establishments have not yet fully recovered from the pandemic, Dunker notes.
- Increased costs of goods and labor make it harder to obtain a sustainable, profitable business model, she says.