QSR Aug 2024 100.000 call

Cost gap between dining out, at home at all-time high: BofA

Consumers have been met with rising dining costs in and out of the home. However, a Bank of America note reports that the gap in the cost of food at home versus food away from home is now at an all-time high. Bank of America Securities Senior Food and Beverage Analyst Peter Galbo joins Market Domination to discuss the findings. While Galbo notes that the cost of food away from home is typically always rising, the numbers tell a dramatic story: the analyst highlights that it is $10 more expensive to eat away from home in a quick service setting and $25 more in a sit-down environment per person. Respectively, that amounts to four and 6.5 times the cost of eating at home. With price sensitivity a concern for many in the consumer market, Galbo underscores that upper-income consumers are currently driving more away-from-home spending. As prices rise, Galbo notes that it is interesting to see promotional activity come out of restaurants as a response. Food companies like General Mills (GIS) and Hormel (HRL) are also starting to see a need to pick up promotional activity, the analyst says. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This article was written by Gabriel Roy