Americans are now spending more on takeout, restaurant meals, and drinks than on groceries for the first time in modern tracking. Economists say the shift is a clear sign that high prices and changing routines are reshaping how households eat.
The change matters because food away from home is usually more expensive per meal than food prepared at home. Researchers and budget experts warn that if the trend sticks, it could put more pressure on already stretched family finances.
Restaurant spending moves ahead
U.S. Census Bureau retail sales data released in 2025 showed spending at food services and drinking places edging above sales at grocery stores, formally listed as food and beverage stores. That crossover is unusual because grocery spending has historically stayed ahead of restaurant spending in most months.
The restaurant category includes takeout, delivery, dine-in meals, coffee shops, and bars across the United States. Grocery store sales still remain enormous, but recent inflation data from the Bureau of Labor Statistics show food-away-from-home prices have stayed elevated even as some grocery inflation has cooled from its 2022 peak.
Consumer behavior has also shifted since the pandemic disrupted eating habits in 2020. Delivery apps such as DoorDash, Uber Eats, and Grubhub made restaurant meals easier to order, and many households kept those habits even after offices, schools, and dining rooms reopened.
Why experts are concerned
Analysts say convenience is only part of the story. According to the U.S. Department of Agriculture, food away from home generally costs more than food at home, meaning a larger share of each paycheck may now be going toward meals that provide less value per dollar.
That has raised concerns among household finance experts and nutrition researchers. LendingTree consumer finance analyst Matt Schulz said in recent interviews that many Americans are paying a premium for convenience at a time when credit card balances and interest rates remain high.
Health specialists also note that frequent restaurant and takeout meals can come with larger portions, more sodium, and more saturated fat. The Centers for Disease Control and Prevention has long linked heavy reliance on prepared food to diet-related health risks, especially when families are making fast choices several times a week.
What it says about the economy
The spending milestone does not necessarily mean Americans are thriving. In many cases, economists say it reflects a combination of stubborn menu prices, smaller households, return-to-office routines in cities such as New York and Chicago, and less time available for cooking at home.
At the same time, grocery shoppers are still looking for bargains. Major chains including Walmart, Kroger, and Aldi have promoted lower-priced store brands in 2024 and 2025 as shoppers traded down, bought fewer items, or split spending between supermarkets and ready-made meals.
Whether the crossover lasts will depend on inflation, wages, and consumer confidence over the rest of 2025. For now, the latest data point to a notable change in American life: more dollars are going to takeout bags and restaurant tabs than to carts in the grocery aisle.
