financetom
Business
financetom
/
Business
/
Wary diners shun restaurants, raising prospect of boost for retailers
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Wary diners shun restaurants, raising prospect of boost for retailers
Aug 20, 2025 4:05 AM

(Reuters) -Cash-conscious consumers choosing to eat in rather than dine out have raised the prospect of an upturn in earnings for supermarkets and food delivery firms, according to data, analysts and company executives.

U.S. President Donald Trump's tariff policies have added to economic uncertainty, increased the likelihood of stubborn inflation and made consumers question whether restaurants are worth the expense.

"I eat much more at home because first of all eating out is way more expensive lately, and quality is not always guaranteed," Marilena Graziano, a Florence-based teacher, told Reuters.

Dutch retailer Ahold Delhaize, owner of the Food Lion and Giant stores in the United States, said earlier this month that it was increasing its offers tailored to low-cost eating in.

"We have solutions for customers to have a very affordable meal of $2.50 per person at home with the family," Ahold's CEO Frans Muller said in an interview this month. "We have increased a lot of that proposition in our stores." 

The shift hints at a revival of the boom in eating at home during the COVID-19 pandemic when people could not go out. Home delivery companies such as Just Eat.com made record sales, although they struggled once lockdown restrictions were lifted.

Figures from Rabobank and Eurostat show that food retail sales volumes adjusted for inflation in supermarkets, hypermarkets and similar stores grew by 1.5% in the Eurozone between January and May this year. That compares with 0.1% growth over the same period last year.

For food and beverage services, such as restaurants and bars, the metric fell by 0.3%. Last year's growth was flat at 0%. 

RESTAURANTS LAG 

The inflation-adjusted figures suggest that sales at supermarkets are recovering faster than at restaurants, especially for routine weekday meals, Rabobank's consumer foods sector analyst Maria Castroviejo told Reuters.

Castroviejo cited the rising popularity of grab-and-go meals, salads, wraps, and sandwiches.

"This offer has increased and improved a lot and we know that this is taking away some demands from certain foodservice players," she said.

Delivery Hero, which owns Glovo and Foodpanda, said that consumers go out less during times of economic hardship, but will order in as a cheaper alternative.

A survey of more than 5,000 U.S. adults commissioned by Hellofresh, a German meal-kit maker that makes most of its revenue in North America, showed 93% of them expect to cook as much as last year or more in the next year.

Among those who plan to cook more at home in the next year, more than three-quarters say the economy is a factor.    

Visits to grocery stores have steadily outpaced those to restaurants and bars in the U.S., data from foot traffic tracking firm Placer.ai showed.

The data showed visits to grocery stores grew by 1.3% year-on-year in June, while they fell 0.4% in the same months for restaurants.

Jenny Russmann, who works for an international organisation in Vienna, is among those using supermarkets more.

"I switched to eating at home a bit over a month ago due to wanting to just be healthier and especially also costs."

In Milan, Chiara Schiavoni, employed at the regional administration, said she prefers to eat at home as prices rise and restaurants' portions shrink in Italy's financial capital.

"I get seven-euro food vouchers at work and I can't even buy a sandwich, which costs around nine euros in restaurants around my office," she said. "On the other hand, I can use them in supermarkets where all in all it's more convenient."

($1 = 0.8566 euros)

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Tata Power Renewable Energy wins 200-MW project in collaboration with SJVN
Nov 28, 2023
The firm and dispatchable renewable energy (FDRE) project, designed with a hybrid of solar, wind, and battery storage, is aimed at providing a stable and dispatchable energy supply during peak hours. Shares of Tata Power Company Ltd ended at ₹270.75, up by ₹12.60, or 4.88%, on the BSE.
This sustainable jewellery brand is luring some women away from gold
This sustainable jewellery brand is luring some women away from gold
Oct 30, 2023
Aulerth's offerings range from ₹5,000 to as high as ₹2.8 lakh. Are women willing to spend this much on jewellery made from scrap? Founder and CEO Vivek Ramabhadran definitely believes so. Aulerth produces couture-inspired pieces in association with designers like JJ Valaya, Suneet Varma, among others. It has reported 33% repeat customers in the past year and expects a spike to 40% soon.
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Suzlon's S144–3 MW wind turbines get big boost from Indian government
Nov 15, 2023
Th Suzlon wind turbines received the RLMM (Revised List of Models & Manufacturers) listing from the Ministry of New and Renewable Energy, marking an important milestone for the successful commercialisation of the product. Shares of Suzlon Energy Ltd ended at ₹40.49, up by ₹1.85, or 4.79%, on the BSE.
SJVN secures 200-MW wind power project at ₹3.24 per unit
SJVN secures 200-MW wind power project at ₹3.24 per unit
Nov 16, 2023
Projected to generate 482 million units in its inaugural year post-commissioning, the cumulative energy generation over a 25-year span is anticipated to reach 12,050 million units. Shares of SJVN Ltd ended at ₹75.17, down by ₹0.50, or 0.66%, on the BSE.
Copyright 2023-2026 - www.financetom.com All Rights Reserved