Americans say they're dining out less. Here's who's cutting back the most.

The Ipsos Consumer Tracker asks Americans questions about culture, the economy and the forces that shape our lives. Here's one thing we learned this week.

Fast food is big business. But after years of passing costs along to the consumer, major brands from across the sector have reported a slowdown in demand. 

The latest data from the Ipsos Consumer Tracker affirms this picture: About a third of Americans say they’ve cut back on fast food, sit-downs, and delivery alike since the start of the year. Nearly half say they’ve been cooking dinner more at home over the same period, while 38% say the same about lunch.  

How Americans' dining habits have changed since the start of the year

Drive-thrus and quick service restaurants have historically catered to a cost-conscious public that valued cheap and convenient meals. But as pinched budgets and shrinkflation have eroded Americans’ purchasing power,  lower earners have cut back more aggressively than higher earners.  

“Over 40% of low-income U.S. adults claim to be visiting quick service restaurants (QSRs) less often for dinner and lunch than at the start of this year,” noted Wendy Wallner, an executive vice president and client officer at Ipsos with years of client-side experience in the sector.

In comparison, just 30% of those earning over $100k say they’re eating less fast food, suggesting that this downturn can be more strongly attributed to flagging consumer confidence than to GLP-1 drugs or shifting tastes — at least for the time being.

Parents have reduced their reliance on restaurants and delivery more than the general public

Even when fast food, delivery apps, or sit-down restaurants can’t win on price, they almost invariably offer a low-effort dining experience. That makes it all the more striking that restaurants across the board are losing ground with the consumer group most in need of convenience: parents. 

“The other group that’s driving QSR declines in equal measure is families — which is not surprising, given that families, especially those with young children, are traditionally highly price-sensitive,” as Wallner noted. 

Of course, there are still some luxuries that Americans aren’t prepared to give up. 

The habit that fewest Americans said they’d cut back on was coffee: 27% say they’ve been buying it at a coffee shop less since the start of the year, compared with 36% that have cut back on sit-down dinners or fast food lunches.

But taken in total, the data indicates that fast food and QSR brands have every reason to refine their value propositions and focus on winning Americans back.  After all, any shift towards lower-cost products presents a host of opportunities for those brands willing to deliver them. 

“2024 will be known in part for price and value wars in both QSR and grocery as these sectors fight over value-seeking customers,” Wallner said. 

More insights from this wave of the Ipsos Consumer Tracker:

People are still interested in learning about generative AI

People are more optimistic about their future under a Harris administration

The Ipsos Care-o-Meter: What does America know about vs. what does America care about?