Nearly Half of Food Expenses Are for Eating Out

January 5, 2000

Of total food expenses, consumers spent 47% in 1998 for eating out. Expenditures for eating out have increased at a faster rate than retail food expenditures, the same USDA report shows.

Spending on food increased 3.6% to $756.2 billion between 1997 and 1998, the report points out. Total expenditures for eating out increased 4.6% to $354.4 billion in 1998. Retail food expenditures increased at a slower pace than the 4.1% increase in 1997 -- 2.8% more to total $401.8 billion.

Total food spending increased 1.4% in 1998 when adjusted for inflation; food eat at home increased 0.1% and food eaten away from home increased 1.9%. The slower real, inflation-adjusted increase for food at home than for food away, reflects consumer prosperity during the year, says USDA.

Consumers spent higher incomes in restaurants, fast food outlets, coffee bars and other eating places.

During the 1990-91 recession, real spending on food away from home declined 0.4%, and spending for food at home increased 1.3%. "One of the ways people economized during the recession was by eating out less often or by going to less expensive places," says the report. The share of total food collars spent away from home declined from 44.7% in 1989 to 44.1% in 1991.

With the economic recovery, spending on food away from home increased faster than spending for food at home. By 1993, spending for food away from home accounted for 46% of food expenditures.

The entire report is on the Internet at http://www.econ.ag.gov/epubs/pdf/foodrevw/sept99/frsept99c.pdf.